The basics of trading markets with clean trends

1) Initial qualification procedure

1.1) Use the ranking link to find a market that’s moving.
1.2) An example would be the Swiss Market Index.
1.3) Then use the corresponding Swiss Market Index analysis page.
1.4) On the analysis page check the trend strength using link 1.6  Today’s technical opinion, the overall average must be in equal to or greater than 30% to establish a new  position.
1.5) The strength of the trend up or down should also be increasing, if trend strength is decreasing you could be in for a trend reversal.

Repeat this process until you find several markets that pass the first test, of the qualified markets choose the ones that are behaving the best.

Below are simplified examples of  what the ATA programs look for.

2) From 2 January 2019 through 7 March 2019 out of  these 3 markets, Gold, 10 Year Treasuries and the Swiss Market Index which one had,

The greatest overall price change with the least amount of volatility
The majority of price action above the EMA 9 (red line)
The EMA 9 (red line) stayed above the EMA 18 (blue line)
Made the most with the least amount of stress

2.1) GC Gold
2 January 2019,  price $1,285.00, position value = $128,500
7 March 2018, price $1,286.10, position value = $128,610
Margin Requirement = $3,400
Overall change = $110
(Dirty long-term trend)

Chart

2.2) ZN 10 Year Treasury
2 January 2019,  price $1,285.00, position value = $121,812.50
7 March 2018, price $1,286.10, position value = $121,343.75
Margin requirement = $1,550
Overall change = $468.75
(Dirty long-term trend)

Chart

2.3) SZ Swiss Market Index
2 January 2019,  price 8.238 position value = 82,380 CHF
7 March 2018, price 9,310, position value = 93,100 CHF
Margin requirement = 5,000 CHF
Overall change = 10,720 CHF
(Clean long-term trend)

Chart

In this example the ATA would only have taken trades in the SZ Swiss Market Index

3) From 2 January 2019 through 7 March 2019 out of  these two S&P 500 stocks MY Bristol-Myers and XRX  Xerox Corp which one had,

The greatest overall price change with the least amount of volatility
The majority of price action above the EMA 9 (red line)
The EMA 9 (red line) stayed above the EMA 18 (blue line)
Made the most with the least amount of stress

3.1)  BMY Bristol-Myers Squibb
2 January 2019,  price $51.74, position value = $51,730
7 March 2018, price $51.73, position value = $51,720
Margin Requirement = $25,870
Overall change = ($10)
(Dirty long term trend)

Chart

3.2)  XRX  Xerox Corp
2 January 2019,  price $19.48, position value = $19,480
7 March 2018, price $51.73, position value = $30,690
Margin Requirement = $9,740
Overall change = $11,210
(Clean long-term trend)

Chart

In this example the ATA would have only taken long term trades in XRX  Xerox Corp

4) From 2 January 2019 through 7 March 2019 out of  these two currencies  USDSGD U.S.D Singapore Dollar and  USDSEK U.S.D – Swedish Krona which one had,

The greatest overall price change with the least amount of volatility
The majority of price action above the EMA 9 (red line)
The EMA 9 (red line) stayed above the EMA 18 (blue line)
Made the most with the least amount of stress

4.1) USDSGD U.S.D Singapore Dollar
2 January 2019,  price 1.3628, position value = $100,000.00
7 March 2018, price 1.3598, position value = $99,779.86
Margin Requirement = $3,000
Overall change = ($220.14)
(Dirty long term trend)

Chart

4.2) USDSEK U.S.D – Swedish Krona
2 January 2019,  price 8.86610, position value = $100,000
7 March 2018, price 9.42592, position value = $106,310
Margin Requirement = $3,000
Overall change = $6,310
(Clean long-term trend)

Chart

In this example the ATA would have only taken long term trades in USDSEK U.S.D – Swedish Krona

5) From 2 January 2019 through 7 March 2019 out of  these two metals markets SI Silver and  PA Palladium which one had,

The greatest overall price change with the least amount of volatility
The majority of price action above the EMA 9 (red line)
The EMA 9 (red line) stayed above the EMA 18 (blue line)
Made the most with the least amount of stress

5.1) SI Silver
2 January 2019,  price $15.63, contract value = $78,150.00
7 March 2018, price $14.92, contract value = $74,600.00
Margin Requirement = $3,600.00
Overall change = ($3,350.00)
(Dirty long term trend)

Chart

5.2) PA Palladium
2 January 2019,  price $1,259.00, contract value = $125,900
7 March 2018, price $1520.10, contract value = $152,010.00
Margin Requirement = $6,250.00
Overall change = $26,110.00
(Clean long-term trend)

Chart

If you have any questions send a message or contact me

Regards,
Peter Knight Advisor

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