Can You Still Trade Intraday In A Volatile Choppy Market

2016 has already been a tough year for intraday traders. In the last three months, the news cycle and global macro events have set up a narrow trading band, that most days is hard to read.

Have we hit a ceiling? Are we in a bubble? Are we about to enter into a deflationary cycle that is only on hold because of central bank rate easing? Will Trump de-stabilize world markets? Will oil prices jump back up or just drift sideways?

Should you be monitoring these situations or stop the distractions and just look for patterns? It can be a tricky time for the intraday trader to correctly select and time trades.

In this type of volatile market, lagging indicators like moving averages, MACD, RSI and Bollinger Bands are not reliable.

Instead, focus on news. How come? The news cycle is the significant factor in driving these stock price fluctuations. So you can’t ignore it.

But tracking the relentless stream of news and then calculating how any news item affects any particular stock or index, in time to benefit from the analysis, is beyond the average brain to compute.

So if we intraday traders should follow the news, but can’t make sense of the data that’s actually highly correlated to moving prices, and technical indicators are not useful in this choppy market, what is the alternative?

Enter the age of artificial intelligence and machine learning where a supercomputer can do all the heavy cognitive lifting so traders can immediately realize which news alerts are most likely to move price, in advance, before it actually happens.

DeepStreet EDGE is powered by such a supercomputer.

Even in a choppy volatile market affected by global macro events, the way the alerts are presented to the trader makes specific news immediately actionable. It is obvious what direction an index, or a stock is about to move and how long it will move that way.

To understand how it works, refer to the figure below. DeepStreet EDGE’s NASDAQ chart on May 31, 2016 shows how volatile the market was that day, as choppy as it has been most days since March.


Specifically, the real time chart above shows that DeepStreet EDGE is signaling a yellow dot, and a yellow line sticking out from the last price, meaning that it is likely unsafe to trade. The yellow line is pointing in the direction the market is about to move next – sideways, slightly trending up.

Yellow means that news pressure is diverging from momentum: the counterforce of pushes the market sideways.

The light red lines in the chart above reflect the bearish news of the day. At the start of the day there was more Red news, than Green (Green lines shows bullish news). Yet despite the light green news coming out at 8:30 AM, when a trader might have gone long, the market was also showing yellow meaning the supercomputer is warning that the market is too volatile to trade.

To make a successful trade in this market, you would wait until the Pointer showed Red, to short a stock or the index, or Green to go long. As you study this chart, you see that trading with DeepStreet EDGE helps preserve your capital.



On the DOW chart above also from May 31, the pointer is Green. Notice that the base of the pointer is where the index is at the moment. The steep angle of the pointer means the supercomputer anticipates a high probability the index will move up, finally breaking it’s sideways chop that has plagued the market since 9 AM.

The lighter green pointer and lines indicates that it is the news stories in the right column that are pushing price. This observation comes after several hours where macro global news events (grey lines) were affecting the Dow.

When the pointer turns Green and sharply up, DeepStreet EDGE is suggesting that it could be an ideal time to take a futures trade, BEFORE the market has retraced up.

Or take an option trade on any of the Green news alerts on specific stocks, shown in the right hand column. The percentage number leading the news alert shows the supercomputer’s statistical probability the stock will move to a specific price within the next 3 minutes to 3 hours.

Try DeepStreet EDGE and see for yourself how the supercomputer can make trading in a choppy uncertain market far more enjoyable and rewarding, you can start a free trial for 30 days by signing up here by clicking this link. Your trial includes access to the daily trading club so you learn how to interpret the signals by watching the head trader use DeepStreet EDGE for his own account.


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