Algorithmic Stock Market Evaluation

October 6, 2013 at 1:37 pm Leave a comment

Spotting and trading institutional money moves is a favorable way for the private investor to be on the right side of a trade. Times move ahead and private investors do no more need to rely on 100-year-old trading techniques. Today’s software and computer technology allow you to apply the most advanced algorithmic trading techniques from the comfort of your home or wherever you want to be.

NeverLossTrading indicators, studies and algorithms spell out price thresholds, which have to be surpassed to indicate a directional institutional price move: The crowd follows the leaders.

Buy> $169.50 means exactly what is says: Only enter a trade when the next or second next candle surpasses this price threshold. Else the direction is not confirmed and you don’t want to be in a trade.

Take a look at the SPY chart below. In the last 5 days, you can see four potential directional trade indications, but none was confirmed, hence, we apply a wait strategy until the market has mapped out a new direction.

No guessing: Trade What You See!

SPY Development: July – October 2013 See the development of SPY on NeverLossTrading

In the aim of finding confirmation for the strength of a move, we are looking at the volume bars: When they show a different color than gray, institutional buying or selling is detected (you learn the meaning of the color coding in our mentorships).  

However, we cannot trade blindsided and pure technical. This is why we call it:

Algorithmic Trading with Human Interaction

Take a look at the September-18-price-development: NLT Light Tower Candle (cyan dot) on the high, which is a clear indication not to follow the institutional intended price move. A typical trend exhaustion candle is portrait on high volume (you learn this in our mentorships). At this instance, less informed traders get lured to go long, buying SPY on the high. Then, bars right after, you can spot two strong sell signals; again confirmed by volume: Our signal to go short. Finally, where to end the trade? The moment, we got in the congested price area, where we are in now, we left the trade and are ready for the next, when institutions make a new directional commitment. Here is the reason why:

When you look at the volume bars of September 30, October 1 and 3, institutional acting is highlighted, indicating a potential stronger exchange in ownerships of SPY stocks. When the new stock owners decide what they want to do with their shares: Buying more or selling them back to the market, our indicators will tell us to get ready to trade with the evolving direction.

Why do we use SPY as reference index?

The value of SPY is represented by real stock holdings, while the S&P 500 index and its futures are more objects of manipulation or speculation. However, when we look at the Emini S&P 500 index, it portraits the same picture as the SPY.

Emini S&P 500 Development: July – October 2013 S&P  Emini on NeverLossTrading Charts

At times, people compare the NeverLossTrading Price-Volume Indicator with the Wyckoff’s volume spread analysis and we can only say: “Yes, Richard D. Wyckoff and his findings were inspirational for the development of our algorithms”, which paints institutional action on the volume- and price bars. However, our algorithms operate real time and use 2013’s computer technology for a high level of precision and speed, portraying institutional money moves immediately on your chart when they happen; moving from tape reading to vector graphics and algorithmic trading.

What does this overall market assumption say for individual Stocks?

About 75% of the stocks show price developments, directly correlated with the S&P 500. However, every day institutional money moves happen in and out of individual stock holdings, giving you the chance to constantly spot and participate in the markets.

With the launch of NeverLossTrading Alerts, where we communicate assets with institutional attention, you can decide to be informed early on a price happening. Considering the different needs of day traders and swing traders, we offer:

·         Long Term Investor Alerts: Oriented towards moves in the next 1-10 weeks.

·         Stock Trader Alerts: Price move indications for the active stock trader.

·         Day Trader Alerts: Fish, where the Fish are! Find the hot spots of money moves for day trading.

Putting you in the position to spot on your chart where institutional money moves start and where they potentially end, we offer multiple classes for the day traders and swing traders, which include software installations, teaching and 6-month coaching. Check out two examples:

·         NeverLossTrading Top-Line: Trade with strong institutional moves and spot them early.

·         NeverLossTrading HF-Day-Trading: Participate frequently in up- and downside moves.


For more details: Call +1 866 455 4520 or

Entry filed under: Day Trading, Financial Market Investment, Futures, Investor Education, Price Prediction, S&P 500, Stock Market, Technical Analysis, Trading, Trading Education, Uncategorized. Tags: , , , , , , , , , .

Day Trader Alert for Oct. 2, 2013 Find Your Trading Opportunities Pre-Market

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