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This five-minute video will give you an insight into how you can approach the crude oil market using MarketClub's "Trade Triangle" technology. This approach takes a great deal of the emotion out of trading which is crucial for any successful trader.

I hope you enjoy the video and learn how to employ our technology into your own trading.

Every success in life and in trading,

Adam Hewison
Co-founder, MarketClub.com

Step 1. A move begins with the sponsors who have insider knowledge as it relates to a particular stock or futures market. This information will move a market up or down depending on the insiders information. (These buyers are very smart and recognize opportunities early.)

Step 2. Occurs days, weeks and in some cases, months after a move has started. There may be a mention in the electronic media (radio, cable, TV) that a market has moved. (Public hears for the first time and starts getting interested. Does not buy.)

Step 3. A blurb of information appears in the print media (yes, believe it or not, a lot of people still read newspapers and magazines). (Public begins to get interested and starts to buy a little.)

Step 6. The sponsors and early insiders begin to move out of the market and take their profits off the table when Step 5 is underway.

In 1992, Lee established EFG Group along with his two partners who are long-time friends. Since then, Lee has traveled the U.S. conducting seminars and trading meetings for retail traders and commodity offices.

Has gold lost its luster?

When we first announced that we had a major sell signal for gold it was if we were going against the Holy Grail. We had what literally amounts to hate email coming in from all the gold bugs saying, how could we think of selling gold given the economic uncertainties that the world faces today. But as we have stated before, we only look at what's going on in the market according to our Trade Triangle technology. What's going on right now indicates that we could see gold continue to move lower. We've already reached several of our downside target zones. Our longer-term target zone for gold is around $800. A move to the to $792 level represents a 62% pullback from golds all-time high of $1,032.58.

Watch the new video here.

P.S. If you missed any of the "Traders Whiteboard" series watch them here.

We welcome syndication of our content in your blog or on your trading website. Please feel free to use our content with attribution -  more details here to syndicate our content

Moving averages are one tool to help you detect a change in trend. They measure buying and selling pressures under the assumption that no commodity can sustain an uptrend or downtrend without consistent buying and selling pressure.

A moving average is an average of a number of consecutive prices updated as new prices become available. The moving average swallows temporary price aberrations but tells you when prices begin moving consistently in one direction.

Trading with moving averages will never position you in the market at precisely the right time. They are intended to help you take profits from the middle of the trend and hold losses to a minimum.

The risks and the magnitude are intrinsic to the speed of the moving averages. Professional traders lean toward the faster averages and portfolio managers generally prefer slower signaling moving average approaches.

Moving averages are a simple way to gauge the direction the tide is flowing in a commodity market. They are not always right, but they provide a wide variety of possible uses.

Lag prices

Moving averages lag prices because of their makeup. You can make a moving average for any number of days you choose, but remember that the more days you average, the more sluggish the moving average becomes. Most commodity traders find a 3-day moving average alone is too volatile. However, 4-day and 5-day moving averages are common as short-term indicators.

To start a 4-day moving average, add the last four days' closing prices and divide by four, The next day, drop off the oldest price, add the new close, and divide by four again. The result is the new moving average. Use the same system for any moving average you might want to develop.

Moving averages give signals when different averages cross one an- other. For example, in using 4-day, 9-day and 18-day moving averages, a buy signal would be given when the 9-day average crosses the 18-day. However, to avoid false signals, the 4-day average should be higher than the 9-day.

Just the opposite is true for sell signals. To sell, the 4-day average must be below the 9-day. The sell signal is triggered when the 9-day average crosses the 18-day.

There are other conditions you might wish to place on your averages to avoid false signals. One possible requirement is to make the 4-day exceed the 9-day by a certain percentage before acting on the appropriate buy or sell signal.

The caveat to moving averages is that although they work well in trending markets, they may whipsaw you in a sideways, choppy market.

It helps to "tune" the moving averages to a particular market. A bit of brainwork is necessary to use a moving average. You can use the moving average studies on MarketClub streaming charts to find whether a fast or slow moving average is best for your trading style.

Some traders who use moving averages follow the slower moving average signals to initiate a position but a faster moving average to exit the trade, especially if substantial profits have been built up.

A linearly-weighted moving average also could help eliminate false signals. A 4-day linearly-weighted moving average multiplies the oldest price by four, the next oldest price by three, etc., and divides the total by 10.

This weighted average is more sensitive to recent prices than a standard average. The term, "linearly-weighted," comes from the fact that each day's contribution diminishes by one digit.

The rules for trading a weighted moving average are the same as using a combination of three moving averages. The weighted average must be above or below the other moving averages, or the signal is ignored.

A more sophisticated average is the exponential moving average, which is weighted nonlinearly by using a specific smoothing constant derived for each commodity to allocate the weight exponentially back over prior trading days.

However, it requires high mathematics and a computer to determine each optimum smoothing constant.

We first previewed this simple yet powerful theory that most traders overlook and ignore seven weeks ago. In case you missed this video, I highly recommend that you take a few minutes and grasp the theory before watching our second video. In our second video we test the theory with two real world trading examples.

Here's the theory:

Here's the theory in the real-world:

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Sent: 4/29,  11:03

Hi Adam, I just wanted to let you know in a few words, a big thank you, I have bought "JRCC" at your recommendation. I never been happier since finding your website.

This is what I have been looking for a long time. I still have a lot material to read and learn. I will write more later. Adam, thank you very much and regards Netty

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It's all here, the theory, two real world examples, and the above email is proof that this concept works. Watch, learn and benefit from this powerful new trading video that most traders have overlooked.

Watch with our compliments. No registration required.

Adam Hewison
President, INO.com.

By: Matthew Zimberg
www.optimusfutures.com

Traders have to detach themselves from the money they're trading.

Will traders be disciplined and adhere to the 3Ms? Not likely. Why? Because after all we are talking about money… and from personal experience, I can say that the majority of us are attached to money and no matter how effective our "Methodology" is, we as emotional beings will often tend to outguess our system.

Why?

• Many traders can not follow a methodology that loses 3 times in a row. Doubts will set in and consequently the trader will stop using the proven methodology and start looking elsewhere.
• Traders bypass and "adjust"' their money management technique based on their risk tolerance instead of applying the methodology's risk management. For instance, a lot of traders are enamored with Gold but will not risk more than $1000 per trade, which represents a mere $10.00 in the price of Gold. This is an unrealistic expectation given that Gold can easily move $10 to $20 from low to high on a given day.
• Traders are not necessarily investors. They often trade to supplement their income while trying to earn a living. Shouldn't an electrician do what he does best in his own field and leave the trading to the Methodology, for which he/she probably spent thousands of dollars to purchase?

By now you're probably wondering about the 3rd M (Money) and thinking why in the world am I even bothering to trade if NOT to make money? And what about all the money you spent educating yourself at seminars, reading technical books on trading? Was that all just a waste of time and money?

I'll let the reader answer that question. All I can tell you is "Trader, Know Thyself." But here's another perspective to all this: Making money is a by-product of success. What does that mean? It means that successful trading is the result of applying the 3Ms: Methodology, Money Management, and Money. There is nothing will guarantee you success, but following the 3Ms would help you to increase the odds of being a successful trader.

(PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THERE IS A RISK OF LOSS IN FUTURES TRADING)

The phrase "making money is a by-product of success" and does not include such things as "I HAVE to make money" or "I have to make the mortgage payment" and "I need to get extra cash." I think you get the picture.

That should help you mentally since this is theoretically money you can afford to lose. The following few facts should also be considered when trading:

• Most traders will be losers.
• Most profitable traders will be in the minority, so maximize your profit potential and don't exit too soon.
• Your methodology sometimes will not hold during certain market conditions, but if it's been tested and proven effective than stick with it.

We can all live with the winners, but to stay calm during the storm is the strength that it takes to stay in the markets and hopefully become a "trader."

Matt

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURES RESULTS. THERE IS A RISK OF LOSS IN FUTURES TRADING. FUTURES AND OPTIONS TRADING INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS.