Intermediate User Orientation

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• Intermediate User Orientation

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What will be covered..

• How VisualTrader Helps You Make
• The 4 Market Modes
• Understanding Transforms
• The Way Indexes Work
• Fire Forget Trading
• Whats Next?

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How VisualTrader Helps You Make Money
Successful trading is all about having
confidence and managing emotions.
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How VisualTrader Helps You Make Money

• Since you can see the whole market, you have the
  confidence to
• Stay with a position on the first pull-back
  
• Exit a position if the market starts changing
  direction
• Stay Out of the Market when direction is
  unclear. (use the time to establish set-ups!
  - described later)

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SEEING the Market

• VisualTrader helps you See the Market using
  Transforms

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Understanding Transforms
A Transform is a unique way of seeing market
movement and change in movement - by assigning
an aspect of motion to a physical
object. Transforms use a collection of
Measurements to show this change.
Radius energy
Color Change in Trend
Height Trend
Patent application for transform concept filed
with the USPTO
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VisualTrader Measurements

• We measure movement in Eight ways

• Current Trend (Momentum)
• Change in Trend (Change in Momentum)
• Reversals in Trend
• Volatility Breakouts
• Net Percent Gain/Loss
• Velocity of Price
• Acceleration of Price
• Average Volume

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Measure Trend

• Trend is calculated as the Value of MACD, which
  is the difference between two averages, in 3
  timeframes.

Downtrend (MACD lt 0)
MACD Line
Short (S) 8/15 Periods, Medium (M) 12/26
Periods, Long (L) 30/55 Periods
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Measure Change in Trend

• Change in Trend is the Value of a moving average
  of MACD (often called the MACD histogram), in 3
  timeframes

MACD Histogram
Short (S) 8/15 Periods, Medium (M) 12/26
Periods, Long (L) 30/55 Periods
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Measure Reversals

• Reversal is fired when the MACD Histogram
  reverses direction through zero, in 3 timeframes

Turns in MACD Histogram
Short (S) 8/15 Periods, Medium (M) 12/26
Periods, Long (L) 30/55 Periods
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Measure Volatility

• Volatility is the measure of movement outside a
  volatility band based on 2.0 times the Average
  True Range over 9 periods. The measurement shows
  breakouts outside the range.

Volatility Band
Price Chart
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Measure Net Percent

• Net Percent is measured for both the current bar
  (in the timeframe of interest) and the current
  session.
• Net Percent (session) Use to see where the
  market is relative to yesterdays close.
• Net Percent (bar) Use to see which stock has
  moved the most on the current bar.

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Measure Velocity Acceleration

• Velocity is measured as Net Change over the prior
  5 bars.
• Acceleration is measured as the average Change in
  Velocity over the past 5 bars.

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Measure Average Volume

• Average Volume is the percentage which volume has
  changed above or below a 26-Period Moving Average
  of volume. This measurement shows whether the
  most recent bars volume is above or below the
  normal range for the security.

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Understanding VisualTrader

• Adapting to Market Mode

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The 4 Market Modes
The market is always in one of four modes.
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3
1
2
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Select the right Transform
- depending on what the market is doing.
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Trending ExampleTransform Trend with Reversals
Trending Market
New Turn up.
With a Trending Market, look for new turns WITH
the trend.
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Reversing ExampleTransform Trend with Changes
in Trend
Reversing (?)
Saucer Bottom
When the market APPEARS to be reversing (you
never really know), start looking for strong
reversal candidates.
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Consolidation (break-out)Transform Volatility
Breakout
Consolidating
Trade the Break
When the market is quiet, establish lines at key
support or resistance levels and be ready to
act.
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Opening Gap ReversalTransform Trend with
Reversals
Gap Down
But, strength here. Good bet
Opening Gap Reversals off fabulous quick profits.
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Making Money with VisualTrader

• The Fire and Forget Method..

TM
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Stocks vs. Indexes
The Index is an AVERAGE. Within the Average,
some stocks are moving more than others.
J
E
A
Stocks Up
F
B
K
G
L
C
H
D
M
The Index
I
Stocks Down
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How Do We Make Money?
Trade the EXTENDED movers (A, I, J).
LONG J
LONG A
E
F
B
K
G
L
C
H
D
M
SHORT I
Stocks
The Index
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Finding Setups is The KEY!
Prospect for candidates that have a high
probability of moving a lot, and set alerts at
key support/resistance levels, and also at
important trend lines. When the market starts
moving, Alerts will Fire! This is called Fire
and Forget Trading
TM
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Fire and Forget Trading
TM

• Establish setups in the quiet zone and be ready
  to trade them.

Quiet Zone
Trend Line Alert
As setups fire, you get to the charts in a FLASH..
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Quiet Market Setups
The Market was consolidating at 1130 am (CST) on
August 8, 2002.
.. A good time to start fishin !!
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Quiet Market Setups
Two Long Candidates identified in the List and
Map.
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Quiet Market Setups (2)
Two SHORT Candidates identified in the List and
Map. PLXS did not cross the line, but HCR
did. We could have made money shorting HCR over
the next 2 hours, even though the market went up.
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There are many great Strategies you can apply
with VisualTrader

• SEE Groups that are suddenly taking off. Buy or
  Sell the Basket. Then
• HEDGE a Basket of Stocks against an Index to
  reduce overnight risk.
• SELL OPTIONS when Volatility is High by using
  the Volatility Breakout view.

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Intermediate Tip 1

• Set the map preferences the way you like them
  (colors, transparencies) on Tools, Options. Here
  is how I like them.

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Intermediate Tip 2

• You can create your own map, and can include
  futures contracts by adding your own symbols.
  Use Edit Symbol List.

Note The Nirvana 500 profile was designed
specifically for trading Group Rotations.
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Whats Coming in 2003

• A Glimpse of New Features Planned

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Whats Coming?

• Integrated BrokerageWith VisualTrader, we want
  to place and manage positions as quickly as
  possible. Brokerage in VisualTrader will focus
  on this concept.
• Expanded Charting FeaturesSoon you will be able
  to add indicators, multiple symbols charted at
  once, and more
• ConfigurabilityAbility to customize your Maps
  with a simple Drag and Drop approach.
• And more..

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Thank you!
We want your feedback! Send letters to
VisualTrader_at_nirvsys.com