Joe DiNapoli - trading veteran with more than 30 years of market experience. He is also a strong researcher, an internationally recognized lecturer and a well-known author.His formal education is linked with the electrical engineering and economics. His informal education was in the bunker, the so-called trade locations, fully equipped with electronics and communications equipment, where the majority of early studies, Joe.
Exhaustive research Joe displaced moving averages, creating their own "predicted oscillator, in particular, his practical and unique method of applying Fibonacci ratios to the price axis, makes him today one of the most eminent experts.
Joe has taught his techniques in the major financial capitals of Europe and Asia, as well as in the United States. Only in 1996. Joe DiNapoli taught his techniques to students in more than 23 financial centers around the globe. His articles have appeared in various publications on technical analysis in various countries around the world.
He was co-authored the book "The tops of trade in futures, the lessons of the masters in 1990, which recognized the Book of the Year. His most significant work to date is the book "Trading with DiNapoli levels, which has become the standard for students of Fibonacci trading techniques.
When Chuck Lebeo ( "Technical Traders Bulletin") asked its readers the names of successful traders they most wanted to be interviewed, Joe DiNapoli name sounds most often. Similarly, the "Atlanta Constitution" cited the work of Joe, referring to the "magic power" of Fibonacci ratios in the market. Joe has used this magic time and again on national television to make exciting and surprising accurate market forecasts, particularly for stock market indexes and interest rate futures.
As president of the company "Coast Investment Software Inc.", Located in Sarasota, Florida, Joe continues to develop "high" trading methods, using combinations of leading and lagging indicators of unique and innovative ways. He conducts a limited number of private tutorials each year at his trading room and he also makes his trading methods available to others via software and training materials on trade.
Would you like to have a trading method that gives you predefined entry levels, reasonably close to the point of stop-orders and pre-calculated for the purpose of profit as soon as you enter in the movement? Add to that a very high percentage of winning deals. This is not an empty promise - it can become a reality, with an appropriate combination of highly effective and leading indicators of the overall retarded trading methodology.
Almost every technical indicator is a lagging indicator. Moving averages, MACD, RSI, Stochastics - calling all of this, we are talking about retarded indicators. First, there is a movement of prices, then a little later, the indicator signals to buy or sell. That is why the indicators are called retarded delay or laggards. They lag behind market action. They give a signal after the fact. Leading indicators, on the other hand, tell us in advance where the market is likely to find support or resistance. Most traders who are trying to use the leading or leading indicators that look at various forms of perekuplennosti pereprodannosti or oscillators. Most oscillators, however, belongs to the category of coincident or lagging indicators. They can tell us when the market is at a point of resistance or support level, but usually they do not give us useful information in advance.
Traders reasonably consider the use of leading indicators is risky because few traders understand how to deploy a true leading indicator of the proper way to achieve the desired results. The secret is to achieve a proper balance, combining leading and lagging indicators for the time scales. If we can achieve this goal, we can think of the trade approach, which greatly surpass the results of the use of any of them individually. Let us consider the problem in more detail. Traders, as rational human beings, prefer retarded indicators, because they want to get a certain comfort level in monitoring the market is already in motion before you enter. Unfortunately, this kind of comfort comes from the change in prices. As soon as the indicator down firmly established in this area, every other player also sees the movement and each is approximately the same time. Those who provide the necessary liquidity to carry out the warrant traders selling on the retarded indicators should receive their profits, so just at this moment we are ready to recover. This recovery usually occurs in the zone, where players place their retarded indicators stop-order. As a result, trader, trading for retarded indicators may be right about market direction, but too often, his position will be closed to stop the order before the market goes to where he had thought. So, how can we get out of this situation? Buy at pre-calculated levels fall during a rising trend. Sell to the pre-calculated levels rise during the downward trend. We define the location of these levels drop, and rises through a highly leading indicators.
In his trading career, I found only two leading indicators, which have the necessary credibility, justifying their use. First - this is predictive oscillator, which I created in the early eighties. It is a derivative of detrendovogo oscillator. He tells me one day earlier, where the market will find support or resistance. He does not tell me that the market will be traded at these points, it just tells me that, if the market reach them and there will be a significant support or resistance. The second leading indicator that I use and I have greatly developed, produced from an advanced form of Fibonacci analysis, called me DiNapoli Levels. By combining a lot of extensions and a unique way of recovery, the trader is able to advance is to determine exactly where the market is likely to find a good support or resistance during the subsequent motion. It does not matter whether they are at one minute or a monthly schedule - these levels are off everywhere. However, the problem with this is very accurate leading indicator, as with all the leading indicators is that it provides little value for the purchase of a support with a strong down trend, or to sell at the resistance in the strong upward movement, unless you're looking for opportunities for skalpirovaniya market in a very short-term transactions. That is why the trade you need a reliable analysis of the general mood of the market.
How it works:
First, define the overall mood of the market (context) to trade using indicators retarded. Then set the input level, using highly efficient leading indicator. Continue to use the leading indicator to locate the point of placing a stop-order. In the case of a rising trend, it must be less than significant level of support. In the case of the downward trend, the stop order should be significantly above the level of resistance. Please note - I do not use stop-order calculated in absolute value. If your stop-order is too large, on the basis of the criteria for the management of money, simply abstain from the deal. As a point of accommodation stop-order is known beforehand, the computation is easily done. As soon as the entry point and stop-order and installed, it is possible to calculate the target level for the generation of profit (with the help of a leading indicator). The warrant closure of the deal is placed on the market immediately after the computation of this value. Do not wait until the market reach there to see what happens next.
If you are using a high-leading indicators, the advantages of this type of trade is. You can achieve an extremely high percentage of winning deals. In addition, your order will be executed with minimal slippage, because you are buying from the depth, when the market declines and sell on the rise when the market rises. If you sell, using the size of management positions, then this approach gives a huge advantage compared to the introduction deals with overcoming a certain level.
Are there disadvantages with this approach? Of course! It takes some experience to learn how to use this method. For example, the market approach, which you use to determine the direction of the market, pointed to the strong upward trend. You buy when falling within the ascending trend, but you place your order at the entrance is too conservative, at the level of support that has not been achieved. The market moves with you. If you do this repeatedly, and you're right eight times out of ten on the market direction, then your order will be executed in only two cases - when you are wrong! This may be, to say the least, unfortunate and underscores the need for accurate and complete knowledge of the use of high-performance of leading indicators, that method worked. Another problem arises when you take the goal of profit. You reach a clear level of resistance and close their positions, and the market continues to go further. If you are not disciplined trader, then you can go directly there and then in the market as soon as the market will make a serious correction. This problem can be mitigated, if you sell a few lots. You can always leave some of them open. I tried this approach and found that a shift to all positions in the pre-defined logic for profit is always better for the final result.
Another method, which you can use to locate positions on a strong bull movement is to re-enter the market at the rollback of the levels of support at lower time scales. Let's say you moved from the position of full-time on Tuesday, and you re-enter at the half schedule on Thursday. What is interesting in this approach - that even if you re-enter the market at a higher price, then you can be at a safe level. This means that statistically you are less vulnerable to the adverse variability, which could activate your stop-order and compel you to take a loss. This approach allows you to manage risk, not raising your stop-order to the areas where they may be vulnerable!
As a rule, I am looking for my retarded indicators or overlapping indicators at the higher time scale. I then combine this with my indicator of leading indicators at the lower temporal format. For example, a full-time model, which I use as the installation to go into a long position that has just been formed. I will watch the time (or smaller) schedule to calculate the exact entry point and stop placing orders. Depending on the nature of retarded indicator, which provided the context for the transaction, I determines the effectiveness of the market. Then I will use pre-calculated for the purpose of profit or time or full time schedule to the point of exit. The approach works equally well when using a half-schedule as the installation and transition to a five-time to analyze your leading indicator. If you sell large positions on a monthly schedule, you can check the daily analysis to determine their input, output and profit goals.
Lagging, and coinciding indicators that I use to determine market trend - the movement Moving averages, MACD and Stochastics combination, as well as a number of pricing models 9. The only leading indicators that I use as I have said, are predictive price oscillator and a special, advanced form of Fibonacci analysis. The more accurate will be your retarded indicators, the better your results will be. The more accurate your leading indicators, the better your results.
Now let's look at different types of traders to see who is best came to this approach, but who would not be able to successfully use this method of trading. Let us fund manager, has in the management of more than five million dollars. Such a trader can afford to diversify their portfolio on a broad spectrum of markets and to hedge their transactions on a variety of systems. It has assets in order to take market downturn (as the smaller trader can not afford it) and he can hire helpers to not be tied to the market all day - maybe he does not need this approach. On the other hand, let's take a trader with a score of 25.000 $ to 50.000 $. This is often an individual trader who is trying to earn a living, trading in the market. He often needs the income from which he can pay for their accounts. It may be need the support of his friends and family to continue this work. His wife can be hard to understand explanation of the 30% ratio of wins and the first significant loss in two months, even if the profits in the third month, outweighs the loss. High accuracy of the trade plan, which shows consistent gains, avoids this problem. This helps ensure that he was looking for opportunities for more effective interaction with the market.
Another aspect is a brokerage service, which may be available to him. Influential Communications, which is able to build a large trader is not available to small-scale trader. We all know that a lot on the S & P is considered in a different way than 10 or 50 lots. Therefore, for small traders may be especially attractive market to warrant pre-defined price levels before the market will be there. For the purposes of hedging, this approach may be finding. You eliminate the need for context. All you need to do at this point - it's easy to look where you are on your leading indicators. Act, or wait, as the numbers dictate.
Typically, mixing and retarded the leading indicators are not suitable for strict nesubektivnyh trading systems. This, however, is ideal for traders who use a certain level of discourse in their trading operations. System traders should be on the market constantly, watching for signals, so as not to miss a great movement that will cover their losses. It is very difficult for individual traders. However, an approach that gives the highest percentage of advantageous transactions, and which by its nature is subjective, can be successfully used if desired, regardless of the seasonality and other factors. In the end, there is not so in the first place most of us are selling?
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