Jul 172013
 

The Wand has now been released to the public!  If you would like to get the Wand, we now have it available with full support and a 7 day no questions asked money back guarantee.

The Logik Volume Wand has now been released to the public!  If you would like to get the Wand, we now have it available with full support and a 7 day no questions asked money back guarantee.  You might also enjoy this short video with instructions for using and setting up the wand here:  http://markettradersjournal.com/how-to-best-use-the-logik-volume-wand-in-live-intraday-trading/

Using the wand makes it possible to do much more advanced analysis than is available in traditional forms of profiling as it is not limited by time and area.

Click here to get the Wand Now!

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I have spent the last several days reviewing this new intraday trading tool from Logik and am simply amazed at what I am able to do with it.   I have long wanted this tool and had inquired with them about development about a year ago and they told me they were already working on it.  Now it is finished and ready for use and will be available for your no cost trial in the coming days.

My initial idea was to see if the same concepts I teach in my webinar with Big Mike Trading applied and I found fully that they do:

The beauty of this tool is in the idea that you can apply it to any area of your chart.  This makes it very easy to find breakouts, often well before you would have using other methods of support and resistance analysis.  There are several modes of using the tool depending on the market situation. If trading in range you will apply the tool differently than if you are trending or if you are at a pivot or inflection in the market.  For the purpose of this article, I will cover trading breakouts from well defined volume nodes.

Some of the tools in the screenshots include other tools from my tool kit as I took these screenshots during live trading today.  If you are interested in learning more about how I use these set-ups, please feel free to ask me.  Let's take a look at a few situations today (Past performance is not necessarily indicative of future results. There is risk of loss trading futures):

Trade Set-up #1

Trade Set-up #1

In the set up above, the market had pivoted over night (I only trade the day session) and at the time the day session began it tested between the two volume nodes. This, in itself could have been traded but what I was doing in this screenshot was I was trading the departure from the lower node off a micro pattern that I believe I teach in the Ultimate Tick Bars (UTB) mini eBook.  You can get this article by opting in for it at the home page on Market Trader's Journal. The book is called: Four Amazing Day Trading Setups To Boost Your Trading.  The key to this set-up is in trading a break from one side of the (high volume) node or point of control which was at 106.62.   At this point the market had also retested the exponential moving average on the UTB bars, formed a bearish pattern and continued lower.   I found that the better defined the node was, the better the move away from it.  Fat, wide, undefined clusters are less advantageous areas to trade from.  Let's look at the next one:

Trade Set-up #2

Trade Set-up #2

In Set Up #2 above, we again saw the market come up and test the well defined and "peaky" node.  Note how this area can be used as a trend indicator. What I mean by this is, I know the trend is still down if I am below this node, because the market has to get through this area for the buyers to be truly in control. This feature alone makes it worth having the tool because anyone who trades knows multiple swings up against a downtrend can often not indicate a trend change. This is true because such cycling is dependent on scale.  This is a really convenient way to remind you of this.  So, when the market failed at the node, I had a strong suspicion the trend would continue lower.  Note the grey areas of the profile that are outside the value area. These areas are what I was trying to trade into; trading into the grey (low volume) areas.  My target of 105.84 was based on my Daily Target tool or the Day Trading Targets website target numbers for the day.  I was expecting a test of that are at about the 80% probability level.  Another way to project into this area would be to use Fib based projections or by looking at previous key areas on a longer term Profile or chart (such as the Nindicator Value Profile tool for NinjaTrader or software like Investor RT etc).

Trade Set-Up #3

Trade Set-Up #3

In the next set up (above) the market retraced upwards in some fairly strong short covering and again formed a well defined node.  Then it tested the upper end of the node twice and began to fail.  Normally, I would have waited for the break to the new low to trade this pattern, but because of the Volume Wand, I was able to get in way earlier.   Those who are Nindicator users will also note this pattern as a P1 type pattern. There was also a counter trend divergence on the Volume Ratio Tools to the downside while UTB bar rate was fast (less than 1/2 minute per bar).   I decided to take this trade off at the Pivot point.   Then the market began to head back up again. Let's take a look:

Trade Set-Up #4

Trade Set-Up #4

In the set up above, the market began upwards and formed a Nindicator P1 pattern moving towards the High Volume node. I decided it was worth the 10 ticks and took the trade.  Exiting just under the high volume node area at 106.15.  This trade also set up a bullish divergence on the Nindicator Volume Ratio tool. I would not advise taking a counter trend trade like this for 10 ticks under normal circumstances, but it was very clear at the time.  You will also note I took the trade above the high volume (blue) area.   With the exception of this trade so far however, you could have traded off these nodes fairly well without additional trading tools, though I would say having the UTBs would have been helpful as you can see the details of market movement with these bars (available through MTJ).

Trade Set-Up #5

Trade Set-Up #5

Next (above) the market tagged into the node area again. The node still being well defined, when a double rejection again occurred at the node I shorted again, and traded it into the daily target area (just above 105.87).  Usually when I tag a target like this, I will sit out and see what will happen as I will expect consolidation or reversal at this level.

Trade Set-Up #6

Trade Set-Up #6

Next the market set up a multimodal distribution so, as I saw the market begin to move above the lower node, I took a shot at a long trade.  We had also crossed the exponential moving average which told me longs were ok.  This trade was also preceded by some volume ratio divergence off the restest at the low. I am very pleased at how these tools have all worked together today. Trading has been relaxed because of it.

By 8:14 AM my time the market had formed a very confused cluster so I stopped trading until I got something clearer. Let's take a look:

Market in Confusion - Stay Away

Market in Confusion - Stay Away

With the chart looking like the above, I took a break and worked with some students. Then the following began to set up, but I had deleted the profile which, at this point was a well defined break from the node again. Let's take a look:

Trade Set-Up #7

Trade Set-Up #7

The trade above was coming off a well defined node as mentioned but also gave some very clear indications with the Volume Ratio tool (as marked). The market had also tested the EMA and the Pivot point as well before I entered short. I ended up scratching the trade above however due to a strong reversal off the (retest of the) low.  Let's take a look:

Trade Set-Up #8

Trade Set-Up #8

In the above trade, I saw us come off the node area and traded the break higher.   The market then rallied higher.  Later, the market came down and retested the Pivot point and I took a scalp trade to the long side above the node (below).  But, as it got very close to the close of the pit session I exited for the day.  This was a very profitable day for me.  I do not represent in any way that you would have done the same thing as me trading today.  Trading is difficult and requires skill, knowledge, experience and practice.  Each trader will make different decisions based on a fairly wide range of interpretations of market action.

I was able to catch the market turns remarkably well with the Volume Wand / Scanner and I am absolutely sure it has improved my trading.  I have worked out a marketing plan with Logik in order to get this tool to you at a special price.  We will also be offering a no cost trial of the product initially. At this point we are the exclusive dealer of this tool and I will be doing some more ongoing training with the tool in a private section of the blog for those who purchase the tool.  They have also modified the tool for me to have some special features that are only available through us.

In the next few days, I will release the details of this exciting  new tool and get you a no cost trial.  The trades I took today were for the most part, 4 lot trades and I scalped out a portion of the trade (1/2 generally) following entry. Then, I tried to let the remaining portion run and manage it according to momentum and targets defined mostly by volume nodes in range or daily targeting techniques.

I believe this tool will be an exceptional addition to your trader tool kit and I am very proud to be offering it for you to advance your intraday trading. By the way, this tool is going to be very reasonably priced and has many other features I did not get to in this article. I spent several days setting up the tool and have simply shared with you my best use of the tool (to date).   Further, I did have losing and scratch trades today. My overall average was just under 70% winners with the average winner just under the average loser.

If you have any questions about the techniques used in this review or in advancing your trading skills, please contact me through the blog.

The Wand has now been released to the public!  If you would like to get the Wand, we now have it available with a no questions asked money back guarantee. Click here to get the Wand Now!

That's all for now....

Trade Set-Up #9

Trade Set-Up #9

 

 

 

 

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