Horizon-PRO-Markets

In this chapter, we’ll discuss what markets you can trade on with the Horizon trading system. I’ve said before that this system is built on finding big players, and these are present in every market there is, so let me indulge in a bit of foreshadowing, you can trade on any market. But to prove this, I’m going to use one simple midterm entry point, explain it, and show you how it works on different markets.

First – impulsive movements.

Let’s start by explaining what that is and why it forms.

Depth-of-market
Depth of market

Here’s a depth of market chart. On the right you have bid, so buy offers and ask, so sell offers, and on top you have deals that have already happened.

Have a closer look at the ask column.  You have the price, and the volume

Depth-of-market
Depth of market

Let’s say someone turns up, who needs to buy a lot of stuff. There are 26 lots in total, let’s say they want to buy them all. So he does, one by one, and on the graph this will look like a large directional movement, a.k.a and impulse. Now we know that an impulse happens when someone what to buy or sell a large volume in a small amount of time.

So when we see an impulse on a graph, we know someone bought or sold a in a big volume, depending on the direction, and that someone is a big player, but we cant rely on just that. We need confirmation.

To understand how to verify this, lets think about what a big player’s main goal is. That would be to accumulate a position, so sell or buy a lot of stuff.

Lookie here, we have an impulse that shows there’s a big player around, and when the price come back, there are two ways things could go

Impulse
Impulse

Lets think about this from the big player’s point of view. When your at this point, and now one wants to sell – you can either raise the price buy buying with a larger and larger price, or push down below the level that we have, as this is where everyone’s stop loss is.

StopLosses
Stop Losses

If you a big player, you want sell liquidity. If you push below the level, you’ll be in a better position having absorbed the stoplosses. So the clearest indication would be a false breakout forming.

When we see that, and then an impulse back above the level, we know for sure that there’s a big player around.

Breakout
Breakout

And now all that’s left is to wait for an entry point, that forms when the price goes back to this level and forms a fractal. Then we can enter, with a stop loss below the local minimum.

Entry
Entry

Let me show you some examples on different markets.

Here’s USDJPY – support, false breakout, entry, price goes our way

Entry
Entry

GBP/USD – support, false breakout, entry

Entry
Entry

EUR/USD, exact same story.

Entry
Entry

Obviously, this isn’t exclusive to currencies. Here’s WTI Oil

Oil-Entry-points
Oil Entry points

Natural Gas

gas
Gas

All that being commodities of course.

Here’s a few examples from the stock market.

This is tesla.

Tesla
Tesla

And some expeditors, again, support, false breakout, entry, price goes our way

Expeditors
Expeditors

On all these examples I had a few trades, and of course it worked out.

So I think I’ve made my point. Different markets, same rules, which lets you diversify, and you don’t have to learn different strategies for different markets.

 

Thanks for reading and have a nice day.