Making trading decisions based on technical signals such as price breakouts and Fibonacci retracements is a proven method that has led to great success for many traders.
But what if I told you that retail traders could actually amplify those technical signals in a way that is powerful enough to match what traders at large institutions are basing their decisions on?
Well, it just so happens that one of my services focuses on finding where the “smart money” is trying to hide their large trades.
It does this by utilizing a sophisticated screener that also identifies the “Triggers” where price may be set to accelerate beyond.
I then take it a step further by building a dynamic watchlist of the best ideas based on this combination of big institutional buying or selling pressure and key technical price levels.
The end result is a slate of high conviction trade ideas that are meant to take advantage of what the “smart money” is doing.
We’re going to be rolling out these enhancements and sharing some of these ideas with you very soon, so I wanted to take this opportunity to show you how these upgrades make for institutional-level, high-conviction trade setups you can take advantage of.
Like I do at the end of every year, I spent the last days of 2021 reflecting on what I can do better to make all of my services the best they can be.
Some of the biggest improvements I’ve decided to make have been to the dynamic watchlists.
So let’s walk through some of these changes right now. Ya with me?
Today I want to go over the exciting enhancements that have been made, why we made them, and why they will help you compete with the big boys.
To begin with, this first image shows the old watchlist format.
That said, these next two images show the new additions that my team and I will be making to the watchlist.
Specifically, Figure 2 shows the new Price and Trigger-related columns we’ll be adding, while Figure 3 shows the new columns that will focus on the Time element of these signals.
I should start by highlighting that any columns that are shown in dark gray are columns that will be updated manually.
That means the Symbol, DPP Price, Print Size, Options Contracts, and Trigger columns are all items that will be filled in by me when I add new ideas to the list.
From there, you’ll notice that the “High” column is a new column that we’ve added.
This simply tells us what the high of the day has been so far for the stock.
The purpose of this column is to give you some reference as to where the stock currently stands compared to its best price levels of the day.
Next, we’ve added the % Trigger column, which tells you how far the stock currently is from the trigger price.
This context is important because it allows the trader to understand if the stock has begun to move too far away from the original trigger price, which would help the trader understand if they are then chasing the trade or not.
There is a color code system to help members put these percentage moves into context, and I’ve provided a rundown of this system in this next image.
The two examples I’d like to use to help explain this system to you are for the stocks F (Ford) and MET (Met Life Inc.) shown in the image above.
To start, in Figure 5 you’ll notice that in the % Trigger column, F has a red cell with white text, as the number in this cell is +16.14%.
On the color code system in Figure 4 above you can see that this means the stock is > 10% above the trigger price, which means the stock has become extended above the trigger price and the trader would be chasing this trade idea at current levels.
Next, you’ll notice that only the text in the % Trigger column is green for MET.
Referencing the table shown in Figure 4, this means that MET stock is -0.58% below the trigger price, meaning that the stock has not run away and the trader would not be chasing that trading idea at that time.
Moving on, we’ve also added several columns to help traders understand how long it has been since the stock moved beyond its Trigger price.
As Figures 6 and 7 show, we’ve provided a color coded system to help decipher these signals, as well.
The example I’d like to use to show you how this part of the color code system works is INTC (Intel) in the top row.
Specifically, you’ll notice on Figure 6 that the “Elapsed Time” column reads 0 Days 5 Hours 2 minutes.
Well, this is simply the amount of time that has passed since the Trigger occurred.
And as Figure 7 shows, the orange cell means that the Trigger occurred within the last 60 – 480 minutes.
From there, the green boxes show that the watchlist goes on to provide even greater detail regarding not just the time that has elapsed since the Trigger signal, but also the exact moment the idea was added to the watchlist.
To be a successful trader takes the ability to be able to manage numerous tasks throughout the day, keeping an eye on current and prospective positions, all while staying true to your process.
By taking some of the most powerful information available, namely the institutional money flow that is hidden within dark pools, and putting it into a dynamic watchlist that puts everything into context relative to key Trigger levels and the elapsed time following a Trigger signal, my team and I have greatly enhanced this already powerful tool.
We’re going to be rolling these modifications out and providing ongoing educational and idea-related content based on the new signals the model is set to generate in 2022.
I invite you to follow along to see just how strong these signals turn out to be.
Let’s have a great day and until next time…