John Paul once again proves that successful day trading can be easy. The video starts with showing you how to take advantage of the large bullish news event candle at around 8:30 a.m. US/Eastern. A common mistake is made when trying to interpret the news as either positive or negative, then entering based on your judgement. John shows a specific technique where the market can be used to provide direction AFTER the big move, when price movement becomes easier to predict. To keep track of news events, visit the Bloomberg Economic Calendar and note the red star announcements.
Another technique John discuss is the Yo-Yo effect. Based on buyer / seller exchange principles, this effect occurs when price bounces back and forth in a choppy succession. If you’re looking to enter a trade, this forecasting method will help you avoid problematic conditions. Start watching from around the 26 minute mark if you’re interested.
The final topic John touches on is market predictions for 2012. By the end of the year, John expects indices to climb to levels higher than those reached in January 2012. The pattern used for this prediction can be back-tested many years with a high degree of accuracy, as it’s used by professional market analysts.