How to use the TradeOMeter
Trading the markets takes precise timing and discipline.
Over the last 20 years I have realized and established a lot of rules to help traders have an edge. I teach the discipline and stress the patience needed to get an edge to be successful in a environment that is fast and sometimes irrational. As the saying goes "hindsight is always 20/20." Meaning it's easy to show you the chart after the day is done and point out the best areas to trade, and I have been in this career long enough to know that's how a lot of analyst and educator work.
During my trading career I have seen and tested many formulas, and through experience I have formulated and perfected this method, which you can now take advantage as the TradeOMeter™
Our team has developed this tool to help time the markets and point out the high probability areas for more profitable trades. The TradeOMeter™ is a scalping tool that can be used by futures and stock traders.
Tutorial and Live Trading Videos
The first 3 gauges are the TradeOMeter™ gauges for the ES, NQ, and YM futures contracts. The fourth is the Trading Algo X indicator which is based on a premium 3rd party algorithm, which analyses each of the 500 stocks of the S&P500 for topping and bottoming patterns.
The 5th gauge is the Breadth-O-Lizer which measures the real-time breadth of the S&P500 market. A fast breadth move to one side can also signal a market which may reverse soon. The 6th gauge is the Tick-O-Meter which measures the real-time NYSE tick (all stocks of the New York Stock Exchange). A high tick can be traded to the downside in anticipation of the a move down, and similarly, a low tick can be traded to the upside.
When these indicators align, in combination with trendlines, channel lines, and volume profiles they signal high-probability reversal zones.
Real-time Signal Markers and Vocal Alerts
Each alert is plotted visually on a real-time chart and followed by an audio alert to inform you of a possible setup. You can look back at the day and see how the alerts played out. As you get familiar with trading using TradeOMeter™ you will notice some days there will be more alerts on one futures contract versus the others. This is an indicator in itself, you might want to trade the contract that is less volatile.
Another great feature is that every alert is archived and logged in a detailed section under the charts.
Something special came out of this and it also acts as a key market timing tool. As you can see under here the capture of the detailed alerts there is a clear division between overbought and oversold alerts, This division marked the change of trend in the market. You can use this data as you see fit, but the little things like this could easily help your analysis of the market and how you want to trade it.
How Will The TradeOMeter™ Help Me Trade?
One of the greatest mistakes a trader can make is over trading the TradeOMeter™ takes in consideration multiple time frames and waits till there are signals triggered on each time frame so it give you best possible entry. The TradeOMeter™ looks at both overbought and oversold levels giving both long and short opportunities.
We expanded the TradeOMeter™ to cover the NQ's and YM along with the ES Futures. Giving you more options and showing you more information like divergences, and relative weakness and strength.
Traders don't have to trade futures, The signals given work just as well with the index tracking ETFs (SPY, SPXU, SSO, UPRO, QQQ, ect.)
The TradeOMeter™ is my favorite way to identify high-probability tradeable zones in the S&P500, NASDAQ, and Dow Jones Futures markets. It has been back tested enough to see the obvious results are staggering when the alert is combined with the trendlines, channel lines, volume profile areas, and/or market support and resistance areas.
The TradeOMeter™ is a timing tool that works best in a trading environment with no news that could push the markets to an extreme bullish or bearish zone. News driven markets are where most automated trading systems that use a counter-trend strategy start to fail. The TradeOMeter™ is not an autopilot buy and sell signal generator. It is tool that marks high-probability reversal zones, and when used in conjection with trendlines, moving averages, and the Trading Algo X gauge.
This is an entry and short-term scalping tool for both buyers and sellers. Exits are not identified and depend on market environment and longer term outlook and price action on the chart. When I say longer term, I am still very short term, but 5 minute chart will mostly be used to capture more of an extended move. More on exit strategies later.
The chart shows how each buy alert was followed by a move. Each move varied in distance and follow through. Remember this chart because you will see the market react the 20, 50, and 200 moving averages time and time again. These moving averages will be key in your exit strategy.
In each case, I only took the trade when the TradeOMeter™ signals on the trend line. Each case will be different and in some cases the market will be pressured up or down past any alerts. If that pressure seems obvious or feels looming, then paper trade it and add it to your statistics.