By James Falvo
I wanted to talk about a long set up that I recognized today using Fari Hamzei’s proprietary indicators. There are a lot of cross currents going on in this market and I think it easy to over think yourself out of trade opportunities. For instance today when the S&P 500 Emini Futures began selling off volume was picking up on the downside I was flat. I was flat because I did not have a short set up that I observed. So I stayed patient and waited for the next opportunity to trade either long or short based on trade set ups that fit my criteria. The next opportunity came and it happened to be to the long side. Now this trade was not based solely on Fari’s indicators but his indicators added confirmation for me that the risk to reward was acceptable so I went long. The proprietary indicators he offers are just another tool you can utilize to enhance your ability to make good trades in the futures markets. There are two sets of screens with the proprietary indicators that come with the Hamzei Analytics HFT Twitter & Chatroom membership: HFT Streamer 1 (HFT 1) and HFT Streamer 2 (HFT 2)
For one, I was looking for support to come in at 1186.75 a naked VPOC (Volume Point Of Control*) or 1185.50 the next lower naked VPOC and if those two were broken then 1182.75 also another naked VPOC and the 200sma (see Simple Moving Average ) on the 60min. chart.
*The VPOC is the price during the day where the most contracts are traded. For a great reference on VPOC’s look to the Simplicity in Trading blog a blog done by a gentleman who goes by the moniker of FT71 and can be followed on Twitter as @FuturesTrader71 or pick up a copy of a excellent book called Mind Over Markets a must read for technical traders. A naked VPOC means this was a VPOC from an earlier date and price has not gone back to that area and tested it again which price tends to do.
Back to the set up. This is where I was stalking long. It did not matter where the bounce started but I was ready. We turned at the 1185.50 naked VPOC.
Now I took this screen shot early on in the day but we all know how the day traded. So being ready but not knowing which area would hold I was looking for further confirmation and got it from Hamzei Analytics indicators.
Now you have to know how to read these indicators but I learned quickly once I became a subscriber. Fari is a excellent teacher. We hit -3 sigma (the sigmas are bollinger bands and range from +3 to -3), had a long wick 5 min candle (often indicating a temporary turn or reversal maybe coming), the CI** slope was lit green and beginning to slope up, and CI differential** went from negative to positive all at that 1185.50 naked VPOC. We also had a volume spike.
**CI and CI differential are proprietary market timing indicators by Hamzei Analytics. HFT subscribers get access to these indicators or you can get these indicators on TradeStation. HFT subscribers learn and come to understand these indicators once they join.
On HFT 2, which Fari had set to the 30 min. charts we came down into the 200 sma which also is support and again at the 1185.50 naked VPOC. See below. With also an upward sloping CI and a nice 30 min. long wick candle stick.
Now I will show the bottom of that chart and the 30 min. volume spike. Along with the improvement of the CI differentials.
The last chart I am going to post is something Fari provides to his subscribers everyday. The daily, weekly, and monthly support and resistance levels for a large number of indices and individual stock. Well I printed mine out and noticed where S3*** was today.
***Daily Support 3 is one of the daily pivots many traders look for in a trading day as an area of support
The area of that 1185.50 naked VPOC. One of the reasons for this post is for Fari’s current subscribers to recognize what the indicators are telling you and if this information aligns with your plan for the today how his subscription service can help give confirmation to your trade opportunities.