So today’s date is July 8th. Let’s go take a look at July 1st and we’ll start it from there. So we’re going to go back in time and July 1st, and this is the e-mini Russell 2000, five minute timeframe. Let’s go ahead and put a blue line on the chart and this blue line will represent the first.
So all we’re going to do is basically for those of you that do not know destinations every two hours, you’re provided the price point. It’s a pattern recognition technology that just helps you forward project where the market may go. So every two hours, you’re going to get some purple dots, and basically there’s up to a nine out of 10 chance that the market is actually going to fulfill that price.
And so what we’re going to do is we’re going to see how many times did it actually work versus how many times did it not work. So for example, you see these purple dots right here? We have up to a nine out of 10 chance the price will increase and touch it.
So what you do is you look to take advantage of buying opportunities on the way up to the purple dots. And what I care most about is I want to mark the ones that did not work, and this way you can visually see either (a) the pattern is working or (b) the pattern is not working. So you can see price came down, equal the purple dots, and let’s keep going.
So price equaled the purple dot so it worked there. And every two hours we get a new set. So here’s the purple dots that was fulfilled. These were fulfilled so it’s working pretty good. You can use this for scalping, use this for day trading. If you get the market gives you a big enough distance, absolutely you can use it for swing trading. Usually people who trade futures don’t normally swing trade, but if you are able to handle the overnight margin, there’s a lot of money to be made.
Destinations Fulfilled
So like for example, you can see market went against, but came all the way back down, fulfilled the destination. So thus far, 100% of the destinations have been fulfilled thus far. Let’s go ahead. We got this one that has not been fulfilled. It’s more than likely the market’s going to rally up and equal that blue line. All this means is there is up to a nine out of 10 chance the price will increase. That’s all it means. And so you have that one has not worked as of yet. So that’s been fulfilled and bingo, that was fulfilled.
So you use this because if you have accuracy of understanding where the market may go next, you can strategically trade in those particular directions. For example, if you turn on your computer and looked at e-mini Russell, you’d be able to say, okay, there’s a nine out of 10 chance that prices are going to come all the way down.
That gives you a heads up because if you take a buying position, you kind of understand that there’s a 303 tick bearish move on its way. And so now you have three unfulfilled destinations, four unfulfilled destinations so the selling pressure’s going to add up here real soon.
So that one is fulfilled, that one’s done. That one’s done. The market’s fulfilled these. Let’s keep going. This one’s done. You have an unfulfilled destination there, and then bingo, that was done. So even though the market rallied up, just understanding where the market may be going next, it really gives you a competitive edge.
So now we have up to a nine out of 10 chance price is going to rally and hit this price point. Let’s see what takes place. Boom, look how the market touches it, respects it, forms a high right on it and then jibs. Here’s the unfulfilled destination, market fulfilled it. The market’s hit all these destinations.
So 100% of the time the last week, the market was able to accurately, the destinations were able to accurately predict what the market was going to do next. This is just a pattern recognition technology.
Sideways Movement
The reason why this worked so well, especially in this last week, there has been lots of sideways movement. And so the markets are touching the same price points over and over and over again, but you can begin to see as long as you do not over risk and invest too much money at one time, you can strategically take advantage of these moves.
Hey, this is Joshua Martinez, and I’ll see you next time.
