Confluence Areas To Close Out Profits

Welcome back gang! What I’m going to be doing for the rest of the week, since I’m going to be travelling for business and I’m not going to be able to get away during the day to shoot these videos, I want to give you some great content for the next few days. I previously recorded these all-important videos that many of you have never seen before, and those of you that have seen them should definitely see them again to remember the importance of each of them. What I’ve done is picked a handful of videos for each of you, for each night through the remainder of the week, because we are going to be doing this through Saturday now, that I want you to watch. For our Free Nightly Video Newsletter Members, Premium Video Newsletters, and then our Swing Trading Video Newsletters, I picked three specific videos for each of you, for each of your categories. So, the Live Trading Room and the strategies there obviously are the focus for the Premium. For the Swing Trading, we have the longer term strategies there, some videos that are highly sought after and people haven’t seen in a long time, so you are going to be seeing some really important material there. And then, of course, for our Free Student Family Members, some really key concepts that we teach as well. So great stuff here. Just remember that trading involves risk. This is going to be in absence of the music. We might even be changing up the music sometime soon gang, so stay tuned for that. But for now we aren’t even going to have any music. Just want to remind you trading involves risk, and whether you are trade in futures, stocks, options, no matter what you trade, there is always a chance for great reward, there is always a chance for great risk. I want you to remember that. That being said, enjoy these videos, and we’ll look forward to seeing you in the days to come. Take care everyone, have a great evening!

Ok gang, I’m often asked, “Rob, how do you trail stops or identify target points into the future?” I want to show one of those additional techniques that we used in the Live Trading Room here today as part of that process.

Before we do that, I want you to look at this chart, because this builds upon areas here that we’ve showed you before in some of the past “Trade Like a Professional Series” videos. If you are looking at the charts you should see something that looks familiar to you. Perhaps something like some distribution bars right on the 2 minute chart? How about distribution bars on the 5 minute chart and the 15 minute chart? Then we can even see some over here on the hourly chart, and then we even had one here. So basically coming 50% off those highs in this case. These are all areas that are very notable to us.

So this morning, what ended up happening was I had a long position on, and I was trying to identify where I’m going to take profits on this. This had run up nicely, but it pulled back, and then it was trying to push back up, but by that time that it was trying to push back up again, it already had now multiple distribution bars in the backdrop here. So what I do is, to identify areas where we’re likely to pull back, I identify all those different distribution areas that if I start to find key overlay sections, then what that does to me is tells me that we have a high probability that we could rollover from there. So, in this particular case, at that time, you’ll notice this bar right here was a distribution bar. It came more than 50% off that high there. So, we’d drawn that one out; we’d then drawn the next couple bars after that as well, so that was from here down to here; and then this one here from here down to here. Well, as we put all that together, we saw one of the key overlap areas from the most recent distribution, to the one right behind that was right in this area right here. So that tells me that is a very high probability that we could rollover from there.

Additionally, at that time, we in the same area had then found ourselves actually having distribution in the backdrop over here as well gang, on this bar here, and this bar here, on this bar right over here. So we found ourselves on multiple time frames having distribution that coincided with that exact same area all the way down to the 2 minute chart. So what happened was, this had pushed up. I was looking for it to make a run up here to 9350 plus; instead, it ended up pulling back, taking back away some of that profit opportunity. So, when it pushed back up into this area here and it struggled right in that area where we had that confluence of resistance, that I just showed you how to identify by taking a look at multiple distribution areas and the area that they all kind of converge on. When it got right back up into there, I just took the profits. Made about $210 on that, before obviously commissions, taxes, and that.

Then the end result of that, and that’s what’s really important here, so we hit that area and you may be thinking, “Well, what happened next? Did it push right through there and go up like I ultimately was looking for it to do?” Well actually, no, it pushed right down here and actually had rolled over at that time down, which would’ve caused a nasty little stop-out for most traders, had fallen right back down below the 9300. So is it better to identify that key support or resistance area? And then when you see that’s faltering right up in that area where you’re showing multiple distribution signs coming in simultaneously, is it better just to take the profit, walk away, say, “Well, it would’ve been nice to have gotten the 9350 like we were looking for”? We were avidly discussing this in the room, kept telling people how I was looking for the 9350 and why and where. But then when we had the pullback and then pushed back up, that pullback had actually created another distribution bar on top of the previous one in the back, so now we have a confluence of distribution. Now the risk is much higher that we’re going to find ourselves with a smaller profit, that we’re going to hit an area and possibly rollover again. And that’s what we did. We actually made a lower high here and rolled right back over, as I showed you, down as low as below 93.

So this is another way, another tool, to help you identify areas of confluences of support or resistance that are usable as target points, as meaningful targets, as you’re trailing up your trades behind, or you find an area that you just smack into and it’s like “Look, this is like stone; I don’t expect we’re going to make it any further,” where you can either continue to trail it up and trail it up a little bit tighter, as I did right up into this area; or you can just say, “You know what, we’re done, we’re out. We’re hitting that level. We’re not breaking through.” When we get that question, “how do you identify areas to trail up tighter or just take the profit off?” this is another great tool that I use live in the room to do it, and that is exactly what we did this morning. I hope that continues to build on what you’ve learned, and I’m looking forward to seeing you in the next video.

Ok gang, I hope you enjoyed that little video vignette. I would strongly, strongly encourage you to listen to that video at least one or two more times, even right now. Listen to what I said, take lots of notes, because the things that I teach in those are so extraordinarily important, they always say “the devil is in the details”, and what I want you to understand is we give a lot of important information there, and food for thought, and great note taking material on these strategies, which are some of the core ones that we use in our trading. So I want to wish you guys a great night and we look forward to seeing you in the upcoming video vignettes and then of course we’ll see you for our regularly scheduled nightly videos next Monday. Okay thanks a lot everybody, have a wonderful evening. Take care.

 

 

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