Click on the chart to enlarge it.
Let's begin the analysis of the S&P market through the lens of Ocean by studying the Daily time frame. The intra-day example described below is from the July 20th to 22nd, 2004 time period. However other Daily Ocean buy and sell setups and entry signals can be seen during June and July.
Notice that the Ocean NMC Zero Hits from above the zero line (labeled 1 through 4 on the daily chart) each offered large open equity opportunities that could be closed out quite profitably by rolling down to lower intra-day time frames to maximize the open equity for exits.
Please turn your attention to the early July time period. Note how prices violated the Ocean Natural Moving Average (NMA) on the third trading day of July. This occurred along with a crossover of the Ocean Natural Market Channel (NMC) from above the zero line to below it (lower sub-graph).
Neither of these events had occurred for over a month, allowing us to recognize that the market was in the early stages of turning bearish. Ideally, we should wait for a Zero Hit from below the zero line as a setup for a Sell signal. In fact, that is exactly what occurred on July 7th, as indicated by the down arrow marked #5.
We enter the market the next trading day (the precise entry techniques are taught extensively during the Ocean Workshop), and we get an additional Ocean sell setup and subsequent entry signal a few days later (see arrow #6).
This Zero Hit signal also generated an Ocean Add On signal which appears quite often and allows a secondary trade (based upon the prior entry) to be initiated with less than half the monetary risk of the first trade entry. This incredibly valuable trade technique is also taught at the workshop, and Ocean Masters have told us that this little gem alone is worth the cost of the Ocean Master Software.
(This is the end of Part 1. Go to Part 2.)
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