The Explorations we designed specifically for our Students who use MetaStock Charting software are used for 2 purposes. This helps streamline your analysis and makes it easier and faster to find stocks to trade.
There are 4 primary Explorations:
The TT Momentum Buy Side Scan
The TT Momentum Sell Side Scan
The TT Institutional Scan
The TT RSI Scan
The first purpose of the scans is to identify the current market condition. There are 6 primary market conditions. It is critical that you identify the market condition you are in because that will tell you:
1. What trading Style will work best.
2. What Buy signals or Sell signals will be the most profitable.
3. What indicators you should use.
4. How fast stocks will move.
5. The support levels that will hold for a strong stop loss.
The Momentum Scans tell you which side of the market has the strongest momentum or bias. The higher the numbers in one or the other – Buy side or Sell Side tells you which side of the market will move the next trading day. So each day you run your exploration, you will know ahead of time what side of the market to trade. The explorations work in all market conditions and are far superior to futures to forecast how stocks will move. This gives you a huge advantage when trading swing or intraday.
The TT Institutional Scan tells you whether the institutional investors - the long term giant pension funds, Mutual Funds, and others are quietly accumulating or distributing. Institutions use Dark Pools nowadays to move in and out of stocks behind the scenes. Their activity DOES NOT show up on the regular market maker screens, or exchanges but is transacted outside the exchanges and recorded end of day.
The TT Institutional Scan leads the market activity at bottoms and tops and helps position traders enter earlier. Since institutions control over 80% of all the market activity, this helps you trade with rather than against the institutional investors.
There are several kinds of institutional traders:
1. High Frequency Trading firms. These are companies that have many HFT’s on staff and Quants who create formulas to trigger buys and sells. They trade on the millisecond or 1000 times a second. This kind of trading is inaccessible to you the retail trader, BUT you need to know if these HFT firms are active in a stock if you are an intraday trader. These firms have replaced the Market Maker’s role in most exchanges as 90% of all trades are now electronic. Only 10% go through a market maker anymore.
2. Floor Traders trading for a financial institution either for the sell side or buy side of the market. These are active traders but are not as many as there once were. The advent of electronic trading has replaced many floor trading firms.
3. Professional independent HFT or floor trader. There are many independent professionals trading the market on a short term basis. They can target retail trading systems to trade against them.
4. Institutional In-house Traders: big funds traders who hedge, trade derivatives, and do other very short term trading to make short term profits for the fund.
The TT Institutional Scan helps reveal who is trading and how they are trading.
The Exploration called: TT RSI Scan tracks compression patterns on platforms, consolidations, triangles and other sideways action. As sideways action compresses the likelihood of a breakaway gap or big sudden run increases dramatically. Being able to identify how many stocks are in a compression mode tells you when the market is about to move suddenly. It also shows you which stocks are likely to gap soon.
TechniTrader® Explorations do far more than just give you a group of stocks to trade, they help you understand what is going on behind the scenes and help you see what is coming next.
Trade wisely,
Martha Stokes, C.M.T.
Member of Market Technicians Association
Master Rated Technical Analyst: Decisions Unlimited, Inc.
Instructor and Developer of TechniTrader® Stock Market Courses
http://technitrader.com
MetaStock Partner
©2011 Decisions Unlimited, Inc.
Disclaimer: All statements, whether expressed verbally or in writing are the opinions of TechniTrader, its instructors and or employees, and are not to be construed as anything more than an opinion. Student/subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues. At no time is any stock or issue on any list written or sent to a student/subscriber by TechniTrader and its employees to be construed as a recommendation to buy or sell any stock or issue. TechniTrader is not a broker or an investment advisor it is strictly an educational service.
