Part 2 : Buy Structure (click on chart to enlarge for greater detail)
Previous post focused on the Total Market Sync (TMS) Sell Structure and specific criteria for identifying entries and management. Please review that post to refresh your knowledge.
Today’s focus is Buy Structure…Let’s get to the details:
As always, the first consideration for the trader is to identify the major, intermediate, and minor support and resistance (S&R) levels. Trader must know where their “edge” is going to come from and prepare for the opportunity. Knowing S&R levels is a critical piece of information. TradePilot Pro distributes “Daily Pivot Levels” pre-opening for the ES, NQ and YM identifying all the important zones.
In today’s example Major Support in ES was between 878 – 880 price zone. Notice that when price reached that level there was a “response” from buyers to that important level. The TMS which is an “index of indexes” responded as well by forming a “double bottom pattern” suggesting that all markets were accepting this price zone as support. The trader is now on alert for possible long trade opportunity once the TMS fires a buy signal. Below we will list specific criteria that trader should be looking for to confirm that a long position can be taken…Please refer to chart for additional annotations and clarity.
Buy Structure Criteria:
1.) Price transitioning from red to green perhaps with yellow caution bars
2.) Green price bars with 8 ema crossing 13 ema from below (early warning signal)
3.) Green bars continue to strengthen and 8/13 ema cross 34 ema from below (confirming strength)
4.) 34 ema typically has troughed and is now sloping higher
5.) 8,13,34 ema’s cross the 200 ema from below which is the “golden-cross” (price accelerates higher)
Trades can be considered at 8/13 ema cross or when 8,13 ema cross 34 ema. Trade entries can vary for individual trader but TradePilot Pro typically prefers buying pullbacks within an uptrend. Please refer to prior post for explanation using the Coil Finder for fine tuning entries.
Utilizing the Total Market Sync as a decision making tool can increase trader’s odds of successful trade outcomes. There is an old saying “don’t fight the tape”…Well we at TradePilot Pro say “Don’t Fight the Total Market Sync”…and it will serve the trader well to adhere to that rule.
One last thought: “There are old traders and there are bold traders…but there are no old bold traders”…because those were the ones that fought the tape. Learn to read price action and structure and you will live to be an old successful trader.
The last in this series (part 3) on using the TMS will focus on Continuation Trades.
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