Daytrading Q & A

What is Magic T?

Overnight Update Answers - (cont.)

8)  What if there is a strong probability of a cycle turning point, but it doesn’t occur?
Usually this signifies congestion. If, however, volume dries up or conversely increases dramatically, an opposite move will generally occur.

9)  What is the “Magic T” and how does it work?
The Magic “T” is a trading approach developed by Terry Laundry. His concept basically states that certain oscillators spend as much time going up as down, only their amplitude is different. This allows one to accurately anticipate market turning points. The Bulletin has done extensive research regarding this technique and found it to be valid and very precise. More information on this technique can be found at Laundry’s web site and in Jack Schwager’s Market Wizards in the Chapter titled Marty Schwartz -- Champion Trader.  

10)  How much does it cost to receive only the Overnight Update, and how do I subscribe?
We no longer offer the Overnight Update only. (The Overnight Update is included when you subscribe to the Real-Time Signals.) You can subscribe by filling out the application found on the Subscribe page.

11)  In what formats is the Overnight Update available?
The Overnight Update is sent to subscribers and free-trial users every evening by e-mail and is available on the Historical Results page. This delivery ensures the information is available for review prior to the next day’s trading session.

We use the Adobe PDF format for the e-mail delivery because this compact file format allows you to view and print the Overnight Update for easy reference. Download the Adobe Acrobat Reader from our Overnight Update Example page. Also, we have easy, complete instructions on installing the Acrobat Reader for viewing and printing PDF files.

We do post an HTML version for Subscribers and Free Trial participants that is viewable in a browser window and does not require any special reader. This is done to assist those who are having trouble with the Acrobat Reader. This version is not archived and must be printed each day if you want to refer to it throughout the day or at a later time for analysis.

12)  What do you mean by “pulling the Intraday Cycles toward the Key Cycles”?
The longer term Key Cycles are a magnitude (10X) larger than the Intraday Cycles and take precedence in direction and time.

13)  What are the Day Types referred to in the commentary, and how do I use them to make money?
The Day Types are:

      a.  Cycling. The market will reverse usually at a cluster of Intraday S/R levels or a Key S/R level.  Then, after a period of time, that price movement will again reverse at an opposing S/R cluster.

      b.  Reversal.  The market will move in one direction and then reverse at an Intraday S/R level cluster or a Key S/R level. 

      c.  Breakout. The market will either trend immediately or trend after approximately one hour. It will either run through most S/R levels (Intraday and Key) or hesitate, retracement, and then continue trending. The move will usually end on exhaustion at some distant Key S/R level near the market close.

14)  How is the Overnight Update sent via e-mail?
At approximately 7:30 pm Central Time, after every trading session, we e-mail the Overnight Update in PDF format to our subscribers and trial subscribers. Depending on the e-mail program you are using, you may or may not be able to open PDF documents directly in your e-mail in-box.

NOTE:  We have found that some versions of Netscape Navigator 3.0 have problems opening the PDF format in their e-mail modules. Eudora and Netscape 4.0 seem to be fine.

If you cannot open PDF documents in your e-mail program, follow these instructions (Win95 users):

     1.  Upon receipt of the PDF attachment in your e-mail program, right click on the PDF icon.

     2.  Select “Save Link As.”

     3.  In the “Save As” dialogue box, select the directory where you save your Overnight Updates.

     4.  Click “Save.”

     5.  Go to the “Start” button on the taskbar.

     6.  Open Windows Explorer.

     7.  Go to the directory where the Overnight Update was saved and double-click on the file. This will launch Adobe Acrobat and open the file.

We advise that you print the Overnight Updates for easy reference.

NOTE: In order to print PDF I found it necessary to check the box entitled “Shrink to fit” in the printer dialogue. See our new pages for using the Adobe Acrobat software - A Tutorial for Acrobat Reader, Instructions to Download and Install the Adobe Acrobat Reader, and Acrobat Reader Hints.

15) What is the Slippage Column on the Current Performance, and how do I use it?
The Slippage column shows the amount of price movement from the time we issue a Signal until the time we estimate it takes you to get your order filled on the floor. A positive value in this column shows that slippage was in your favor - you got a better price than we did. A negative number here shows your fill is worse than the one we received. Add or subtract the slippage amount to the value in our "Fill" column. This price value should be very close to the fills you are actually receiving on the floor. If you are consistently receiving bad fills, then contact us. We will work to help you improve your fills and can offer some helpful suggestions.

Additionally, on the Current Performance page, we subtract Cumulative Slippage for the day and broker commissions (estimated at $25 per round turn) from our Gross Profit/Loss total to give you a realistic Net Profit/Loss amount.

16) Will your service work for daytrading the NDX? Or better, stocks which track the NDX?
The NDX is traded using the ND H1 or NQ H1 (current front month) futures contracts. We recommend trading the NQ H1 (the E-mini) as oppossed to the full size ND H1 contract, as slippage in this pit is excessive (typically $500 per side and occasionally much more).

Individual stocks may diverge from the direction of our signals and as such trading our signals on individual stocks as an approach is not sound. However, there are index shares traded that almost exactly follow the NDX. The symbol for these Nasdaq index shares is QQQ. These shares are highly liquid, slippage is minimal, and are an excellent way to trade "The Big Trade" which is a longer-term trade that Ralph Russell includes in his Nasdaq Real-time Signals.

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