Frequently Asked Questions

Overview: If you use some of the recognizable consistencies you should be able to pull a small portion daily from the market. Most day traders would recognize a range in trading and then make a few trades within that range. For example the S&P market or e-mini if you got a 150 point move based on 4 contracts that would be a nice day. Or maybe a 6 tick move in the bond market based on 3 contracts.

What is the first thing I must do?

A: Pick the market you are going to trade i.e. S&P, Eurodollar, US Treasury bonds, Currency, and enter the previous day High, Low and Close.

How do I interpret the numbers?

A: The basics of this program are based on the Pivot number. ABOVE the Pivot, the market is bullish, BELOW the Pivot number the market is Bearish. The 5 number method is your mainstay… (Stronger set of numbers) The 7 number method will somewhat fine tune the 5 numbers.

How do I interpret a gap situation when the market gaps open?

A: Well, we know that all gaps are filled; the only question is… when? So, with that in mind the momentum and direction will always take precedence over a gap situation. In other words just look at the numbers and go with them, keeping the gap in the back of your mind.

Do you have any tips for using the numbers or are there any consistencies?

A: The first support and the first resistance on the 5 numbers are the strongest points to watch. Once these levels are hit this pretty much confirms the direction. But the numbers must show as a trade to confirm this scenario… if the market comes within 1 tick, or price increment away from these numbers, it is not good enough for a confirmation…. In fact it probably confirms the opposite direction.