Click on the chart to enlarge it.
Lastly, let's examine a 5-minute chart to see what info might be available there.
Notice the early Cross Kiss sell signal of NMC2 (middle sub-graph) given at about 10:00 AM MST, validated by a crossover of prices from above to below the Ocean NMA. This is followed by a trio of sell setups from the NMC between 10:50 and 11:15 MST. Again, notice the dual confirmatory signals from the NMC tools, with resistance from the NMA on prices.
Additionally, there are a pair of Add-On trade entries available during the compound signal, a technique a little too complex to discuss here. As described above, these offer you the opportunity to deduce risk and increase overall profit potentials and have been praised by many of our prior graduates.
An additional Ocean tool has been added to the chart (see bottom sub-graph). This is a momentum-based derivative of the Ocean NMM, one of the backbone components of Ocean analysis. It is often used to identify when a market is spring-loaded, and likely to reverse in a “slingshot.”
When the NMM ROC oscillator is above its bounded threshold (shown as the dashed line) at the same time as NMC Zero Hits are occurring for a trade setup the move should be explosive and with high volatility.
Note the areas in the bottom sub-graph marked with the circled arrow. When this formation occurs it's as close to a Christmas gift as you'll ever be given by Mr. Market! Again, all of the techniques described for this and other time frames are fully revealed and taught at the workshop. No secrets, and nothing left out of the explanations.
This particular Ocean trade generated more than 18 points ($4,500) from the low time frame (5 min) trade entry to exit, with no more than 1.5 points ($375) of risk required to assume the trade. Note that the profit potential of this single trade was almost enough to cover the cost of the Ocean workshop.
These figures do not take into consideration the hidden Add-On trade nor the additional compound signal at roughly 12:50 MST ("Add-On," shown with up arrow). These trades would have added another 28+ points ($7,500) to the profit of the move, assuming that a market-on-close order was used to exit all 3 contracts.
That's a total of more than $12,000 of profit potential with none of the three trades requiring more than $300 to $350 each of risk (about $1,000 of total risk on three contracts). Where else can you systematically find trades with reward to risk structures of more than ten-to-one?
By being patient for and demanding of the proper Ocean trade setups, these kinds of reward/risk opportunities are available throughout all markets and time frames on a regular basis.
(This is the end of Part 4. Go to Part 5.)
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