New Line Alert Technical Indicator & How to Avoid Price Manipulation

Introducing our newest technical indicator, the Line Alert Indicator.

We use this with our trading methods to make sure we NEVER miss a winning trade!

We also spoke about market manipulation, and how sometimes the market is in a better position to TAKE YOUR MONEY than other times.

• Do you know the difference between your DOM and your time & Sales window?

• Do you know what price telegraphing is?

If not, you NEED to watch today’s video!

– Introduce our new indicator: Line Alert

o Alerts us to when the price crosses a specific price level
o Use as many of these on our charts as desired
o We can set the line color, width, and the alarm will sound when price violates that level

– Why do I use it?
o When im waiting for a specific price level to be broken
o Great for swing or position trades where you may need to wait for a few hours for the trade to trigger.

– How do I use it?
o Add it as a separate indicator
o Available for download in the advanced course
o You will OWN this indicator as a member.

Telegraphing (market manipulation)
– On his trading DOM, he noticed a LARGE block of buyers just below the current price
o Almost like it was chasing price to the upside?
– What does this mean? Should we be concerned?

2 types of orders in the market

1. Waiting / standing order (DOM)(not executed)
2. Executed trade (time & Sales window)

Called ‘telegraphing’ your trades

Telegraphing your trades = portraying your intentions with the intent to FOOL your opponent.

For example: you see a 200 lot on the Crude Oil DOM, and you ask yourself…should I be going LONG because of all the support right below?

Here’s what happens…

– The BIG trader adds a 200 lot buy to the DOM
– The ROOKIE trader decides to stay away from the sell side, and goes LONG, assuming that 200 lot will act as support
– When the rookie gets long, the BIG MONEY traders removes the 200 lot buy, which is noticed by the rest of the market, which causes the market to drop.
– The Rookie gets stopped out
– The BIG MONEY takes YOUR money at your stop, and then gets back in to the downside to reap the rewards of this short trade
– The Rookie sits on the sidelines looking for an explanation.

How do I avoid becoming a victim of this manipulation?

– Only trade during HIGH VOLUME times. Lower volume = more opportunity for a medium-sized trader to move the market
o High vol = very little chance someone will have the potential to move things around.
– Don’t watch the DOM, those orders have NOT been executed yet
– Watch the Time & Sales (use your rules) because those are EXECUTED orders, so those are REAL PRICE movement.

When to stop trading Live:

– 2 weeks on DEMO, if you see 2 weeks of profit on your demo account you then can move to live trading.
– 2 weeks on 1 contract, must have 2 weeks of consistency

– Daily goal = $1000usd / 4 contracts
– Max loss = 2 full stops

o 2 types of losses:

 Where I make the wrong decision
 The market is not in a good position for me today

– After my max loss, don’t stop trading, move to a demo or a simulation account.
o Goal = build your confidence on the SIM account so you can get into live trading the following day.