Tag Archives: Modes

General Business

Price Action And Understanding Multiple Market Modes Using Trade Station Indicators

Advanced TradeStation indicators can provide multiple time frame (MTF) price action.  Price action is undisputedly the most important fact in trading.  If you use multiple time frames to track price action you will increase the effectiveness of your trading edge many fold.  The interaction of the different time frames provides great information regarding which market mode you are trading.  This article will explain how MTF price indicator will tell you what market mode you are in.   Knowing this will assist you to greatly improve your trade management.

The 3 major market modes are consolidation, trend (up-trend or down-trend), and choppy (a trading range).  Every financial instrument goes through these three market modes on any chart.  The interplay of a multiple time frame price indicator shows at a glance when you are in an up-trend, a down-trend, when you have a MTF consolidation, and/or when you are trading a choppy market.

First, let’s focus on consolidation.  A consolidation can be any of the following types; price, volume, volatility, or oscillating inside a trading range.  Price consolidation across multiple time frames gives the most powerful consolidation breakout trades.  With a MTF consolidation, TradeStation traders can typically get breakouts that will sometimes go on for several days. 
This is a very powerful method of trading.  The MTF Price Action Consolidation trade set-up is present when all the price trend lines are collapsed into a tight range.

The second major market mode is trend.  A MTF up-trend is shown by the expansion of the interaction of the different MTF trend lines.  You’ll see this where the shortest trend line is breaking out to the upside and the MTF lines are fanning out into a ribbon.  But don’t be mistaken; simple moving average ribbons are nothing more than a single time frame indicator using multiple different lagging lines.  Unlike the simple moving average ribbon, a MTF price indicator has nothing to do with lagging lines.  In fact, the MTF trend line lags no more than one and a half bars, and yet it shows a smooth price line.  The interaction between the MTF lines is very useful.

You can also see a MTF trading range.  When you go into a choppy market or a trading range, the interaction of the MTF trend lines will show a trading range inside several higher time frame lines and the shortest line will be oscillating between the longer time lines.

You have a big advantage when you know what market mode you are trading in and know how to appropriately trade that market mode.  With a quick glance at a multiple time frame price action TradeStation indicator, this information will be at your fingertips to advance your trading success.

Forex Trading Articles

An In Depth Look At Fap Turbo And Its Trading Modes

I was first skeptical of Forex robots since I have trade for many years and always did my calculations and my observations manually. However, one Forex robot changed that, it was Fap Turbo and I now comprehend why this Forex automated system has been so successful since its launch.

There are many of the Forex robots available and prices range from the reasonable to the absurd. To many of these come and go quickly because they generate enthusiasm in their launch but fail to generate consistent results. But for the reasonable price of $149 dollars Fap Turbo delivers much value to those that aspire to trade the currency markets.

Scalping is one of two modes Fap Turbo can been used and it trades the EUR/GBP, EUR/CHF, GBP/CHF and USD/CAD currency pairs. It does a very good job on trading all the pairs but it stands out trading the EUR/GBP pair.

Another feature of Fap Turbo is for long term trading. Here EUR/USD currency pair is the best pair to trade with this Forex robot. Both of these modes, scalping or long term trading can be done separately or done simultaneously depending on the traders preferences and objectives.

If you were to look for a weakness in the scalping mode is that the profits are small or 6 to 15 pips, therefore your brokers spreads and commission are an important factor. The scalper mode is more successful in trending day and less on wildly volatile day, on these type of days its better not to trade. The positive aspect of this strategy is that it safer when used with proper stop losses. Your risk of significant drawdowns is limited. This strategy can be very profitable and can increase you account size quickly if spread and commissions are well managed.

The long-term strategy weakness stems from the fact that theres more market risk involved. The system is programed to avoid riskier markets and looks at longer-term trends to establish its trades. On the positive side, Fap Turbo has a complex trading algorithm that allows it to adapt to changing market conditions. You can tell this is true because the Forex robot has been successful in the past two years when at times market conditions have been nothing short of chaotic.

Looking at it overall, I would choose the scalping mode that is very effective and does not expose one to longer-term market risk. Nonetheless, if you are looking for a Forex robot that can allow you to begin trading or improve it, then you should consider the modest investment in Fap Turbo.