Jacobs Ladders Weekly Rewind for the Week of November 5th

Jacobs Ladders Weekly Rewind for the Week of November 5th

Jacobs Ladders Weekly Rewind for the Week of November 5th

Jacobs Ladders is a pivot based trading system that provides perspective on high quality, profitable trade setups for day traders. The purpose of this blog is to educate day traders on this trading system and provide links to the levels on a daily basis. You may wish to bookmark this page.

The Subscription Service for Jacobs Ladders pivot system is now available. A subscription includes a 14 day free trial and includes all instruments and indicators that we cover and new indicators and instruments in development. It also includes our Think or Swim indicator. We are now working on a Ninja Indicator which we hope to finish later this year. Please post any questions you have to this blog.

Click HERE to subscribe to the Jacobs Ladders Pivot System.

The objective of the Jacobs Ladders is to help day traders identify and capture a minimum price movement between any two adjacent pivot points. This system when used correctly will improve the consistency of winning trades and helps minimize risk and losses.

In this weekly blog series, I will point out set ups that occurred during the past week that are illustrative example of how to use Jacobs Ladders for day trading. These examples have been tweeted out on our public twitter feed, you can follow along here @the_artofchart.

For more educational information, please see the previous introductory post introducing Jacobs Ladders day trading system which can be found here.

S&P 500 Emini Set up Examples

Here are two examples on Emini S&P 500. A 1% move day and a typical two sided day.

We had a 1% move down day Thursday where price sold from Level High and found floor all the down at Low2.  A break above to Low1 and back test gave plenty of time for a long entry which resulted in a 20 handle bounce

Key take away here is when price trends down, no need to try random long entries in attempt to catch the bottom. Watch where price stalls against a level and trading long against that level

Crude Oil Futures

Two examples this week for Crude Oil Futures. First, the Monday trend up day based on the Saudi coup news. Remember last week I wrote about ‘ A case for chase’?  Monday’s trend up was exactly that! I could not say this any better.

This type of trade is mainly for the experienced trader who has situational awareness and quick decision making ability. Seeing the strong move up breaking above level High is a confirmation of a trend up. If one wants to catch that trend, stay long immediately with a hard stop below the level. The only thing one must not do is trade against the trend and watch price break through each level above.

The next example is the inventory report – 180 tics total move from level to level. This occurred on Wednesday and gave an excellent opportunity to catch a big move in oil. In this example, we had a 130 tics move down to Level Low then a 50 tics bounce right from Level Low!

Here are the charts for both

Jacobs Ladders TOS Study

If you are a Think or Swim users you can see all the levels loaded into each of the instrument’s chart by copying and pasting code for a study each morning. The Link for the study is included above where the levels are published

Here is what the TOS chart will look like if you have 9 cell grid for various instruments with levels loaded. You only need to update the study on one chart and Levels will load automatically on all other instruments for which Jacobs Ladders levels are available.

I hope this educational post helps you understand how to use Jacobs Ladders. Please look for our educational posts on our public twitter feed at @the_artofchart.

 

 

 

 

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About the Author

Stan Nabozny
Stan is a 20 year retail trading veteran and Co-Founder of The Art of Chart. His specialties include using futures and options to trade Commodities, Equities, Currencies, Precious Metals and Bonds. Stan believes that Risk Management and Trader Psychology are more important that technical analysis and spends his time teaching and coaching other traders on these topics . Stan uses various trading systems and technical analysis approaches that integrate time and price in his work. See his latest articles here and www.huffingtonpost.com.

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