OmniTrader - Stock Trading Software & Market Technical Analysis
The Money Zone Module
The Money Zone Module*: $495.00
The Money Zone may be the most important trading discovery we have ever made! We are seeing consistently profitable trades using this new tool, which makes sense when you examine the principles it is based on.
Markets are essentially auctions. In an auction process, price moves back and forth from “overbought” to “oversold” as it establishes value. As the market turns back to the middle of this range, we can say that “price is moving back to value.” If it moves away from the range, we can stay that “value is moving to a new price.”
The Money Zone finds the current Value Range, making it much easier to determine when price is moving to a new value or returning to the previously established value. The chart below shows an example of the Money Zone in Real Time. As price moves through a Value Range boundary, a profitable Breakout trade often occurs (see points A-D in the chart.) If, on the other hand, it bounces off a range boundary, it will typically move back to the Value Line (see point E), which can be traded as a Reversal.
Volume also plays an important role. By determining the price at which the most shares were recently traded, we know where buyers and sellers have the most agreement about value. A unique Volume at Price Indicator (VAP) shows us where this important level is in our charts. We are seeing profitable trades by using “the Zone”. Whether you are trading in Real Time or End-of-Day, knowing when a market is moving from a Trading Range to a new Trend is the key to trading success!
The Money Zone Module*: $495.00
*The Money Zone Module works with OmniTrader 2010. Not available for prior versions of OmniTrader.
