“M4” for the week ending Friday, 8/10/12

“M4” for the week ending Friday, 8/10/12


In Mentor Mike’s Market Movies I re-trade about 8 hours of market movement in the S&P Emini in 20 to 30 minutes. When I see a trade setup, I pause the accelerated data feed, identify the entry signals and place the trade on Ninja Trader’s demo platform. Then, I restart the data feed and see how the trade plays out, win or lose.

In this new weekly version of M4, I will start with a quick review of the charts for each day of the week. Then, I will follow up with an in-depth replay of the one day I feel has the most challenges or talking points.

To better demonstrate the capabilities of Ninja Trader’s Automated Trade Management, and the awesome potential of day trading, I will use a 3-target, 150-contract, peeling-off strategy. This is low-level advanced. Recall that during our contract-pyramiding experiment last June, I started with 3 contracts on the 1st and finished with 343 contracts on the 29th.

We all see the world differently, and have different dimensions to our comfort zones. Remember that market movement is built on fractal geometry and similar patterns can be seen on all time frames. Remember, too, that there are many indicator configurations that can display the alignment of momentum. What is important is that you: 1) watch the timeframe that best puts you and keeps you in your temporal comfort zone, and 2) use the indicators that best catch your eye and register on your brain most effectively. Want to see me use a particular tool or time frame? Send me your request and I’ll consider it.

Got questions, comments, suggestions or critiques? Send me an email to

Chart Symbol Key

Since I’ve cut back from daily to weekly, I want to pack as much useful information as I can into the static chart images.  Thus, I have created a standardized list of chart symbols that I will use (starting on Thursday, 8/9/12).

GREEN arrow: “Money” green = profitable trade; the end of the arrow and tip of the arrow approximate the points of entry and exit on the horizonal time scale; arrow above price = short trade, arrow below price = long trade.

DARK RED arrow: “Dried blood” maroon = losing trade.

YELLOW arrow: “Urine” yellow = a good trade opportunity discovered after the fact because I was not there to see it in real time.

BLUE lines on price and on one or both oscillators: shows divergence on a trend-changing transitional move.

1-2-3: Identifies a Ken Roberts-style 1-2-3 top or bottom formation when used to justify taking a transitional move.  Please note, these numbers are NOT Elliott Waves.  In general, I do not plan to label EW, but I do believe that every good trader should have a working knowledge of the rules and guidelines.

Webinar Link

Here is the video link to last Tuesday’s webinar: Predicting Price Movement – Just the Essentials


Click the play button to watch this week’s Market Movie. Enjoy

Mentor Mike's Market Movie

This Week’s Charts

The trades shown were taken during my regular, real-time trading. Please click on a chart below to make it larger.


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