Position Trading Opportunities

VantagePoint Learning Center

Position Trading Opportunities

Welcome to the “How to look for possible position trading opportunities” Learning Session. In this session, we’ll cover how to:

Use various indicators to confirm a possible position trading opportunity
Find a crossover
Understand the Predicted Differences and
Use the predicted High and predicted Low as confirmation tools

In this video tutorial you will learn how to look for possible tradition opportunities within the VantagePoint Trading Software.

There are many different ways to use VantagePoint and it can be adapted to many different trading styles. Here is one possible way to interpret your charts for position trading. We will outline these four steps for you now and show you what they look like in VantagePoint. Feel free to take notes if you would like. First let’s open the portfolio we want to review.

Now let’s look through the portfolio to find a cross over that just occurred. This is VantagePoint forecasting that the market is expected to change direction. When the blue line is above the black line VantagePoint is forecasting the market to trend up. When the blue line is below the black line, as this chart shows, VantagePoint is forecasting the market to trend down.

You may decide to look for confirmation that the predicted differences – short, medium, and long term – are all moving in the same direction as the crossover. As a less conservative trader, you may decide to use a combination of these indicators. The predicted short, medium and long term differences are indicators that predict one, two and three trading days ahead, respectively. They measure the difference between the short, medium, and long term crossovers against the actual moving averages. Next we’re going to look to see if the predicted short term and medium term differences are above or below the zero line and pointing in same the direction as the crossover. For example, you can gain confirmation by seeing both lines pointing up and above the zero line on an upward cross over. Conversely, for a downward cross over, as we have here, you may gain confirmation by seeing both lines below the zero line and pointing down.

If this chart meets your criteria so far, let’s switch to the daily report, for the same trading day, and look at the Predicted Neural Index for additional confirmation. For example, a PNI of 1.00 could confirm an upward cross over. Conversely, a PNI of 0.00 could confirm a downward cross over, which is what we’re looking for in our example.

Next we’ll look at the predicted next day high and the predicted next day low. These can be great confirmation tools. You can look for them to confirm the direction of other indicators. As we follow our example of VantagePoint predicting a downward trend, we will look to see if the predicted next day high is lower than the actual high and the predicted next day low is also lower than the actual low. Here we find the predicted high and predicted low. Now we’ll scroll back up to see the actual data. In our example, this final step confirms the downward crossover

When all 4 of these steps confirm, this is a possible opportunity.

Try paper trading this for a while first, and then once you get the hang of it, you can try a real trade in the open markets.