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As traders we all want to find the highest probable turning points in the markets. At Online Trading Academy, our students learn how to find them through the discovery of high quality supply and demand zones. In addition to the zones, there are several Odds Enhancers that we teach that traders can use to increase their probability of success in the markets.

One odds enhancer is similar to a fuel gauge, the Average True Range, (ATR). A fuel gauge in a car tells you how much gas you still have left. If you know your average miles per gallon for the car, you can figure out how far you can still travel without running out of gas. The ATR can tell you how much price movement you may experience before you run out of momentum.The range of a stock’s price is the difference between the high price and the low price during a period of time. The true range is a little different in that it also includes any gapping that may have occurred from the prior period.

So, the Average True Range measures the stock’s price vibration (average movement between high and low) over a period of time. The default is usually 14 periods.The ATR of a stock will differ based on the period you have your chart set for. If you are viewing a daily chart, the ATR will refer to the average movement that stock will make between the high and the low for the day. If you have your charts set for 15 minutes, then you will see the average movement for every 15 minute period.When price is trending strongly in a particular direction, knowing the ATR for that timeframe can offer you a clue as to when price may pause or reverse. For instance, in the following picture, the daily ATR for SPY was $3.81. If you subtracted that from the prior day’s close of $185.28, you knew that the morning gap and price drop would likely see a pause when it reached the daily ATR range.



Additionally, when price reaches a supply or demand zone beyond the ATR, it is more likely to reverse. Price may still have plenty of momentum when it reaches a supply or demand within the ATR.We can even use this ATR on a larger timeframe. Last month’s ATR for the Q’s was $9.52. At the close of January, QQQ finished at $104.13 and started to sell off in February. Subtracting the ATR to the closing price of the previous month, we arrived at a target of $94.61 for the monthly trend of the Q’s. After opening positive on the first day of the month, prices dropped until they were just shy of the ATR target. As of the writing of this article, price has lost its downward momentum and has been basing at that ATR target.



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With higher prices for services offsetting a continued decrease in energy prices, the Labor Department released a report on Wednesday showing an unexpected uptick in U.S. producer prices in the month of January.

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Aside from being an accomplished musician, Corey Lane is also a very accomplished Trader! Corey joins Merlin to talk about his style of trading options, and how the market dictates his trading style. He shares with listeners some strategies that are working well in the current market environment, as well as showing some examples for viewers.



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Craig Weil spent many years on the floor of the CME trading the only true currency: Price! Not the news, not what CNBC was telling him, or any other biased reporting! And you shouldn’t either! Merlin and Craig talk about how the media distorts the market picture, causing traders and investors to lose money. Are you in the same boat?



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While the Labor Department released a report on Friday showing that U.S. consumer prices came in flat in the month of January, the report also showed a bigger than expected increase in core prices. The report said the consumer price index was unchanged in January after edging down by 0.1 percent in December.

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With turmoil in the financial markets rattling consumers, the Conference Board released a report on Tuesday showing a much bigger than expected drop by U.S. consumer confidence in the month of February. The Conference Board said its consumer confidence index tumbled to 92.2 in February.

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For the past 6+ months, every time Vishal has been on the show, he has been adamant about selling the rallies! And for 6+ months, he has been SPOT on! Will his market view persist? Tune in and find out the answer and much more as Vishal calls in from Mumbai to talk to Merlin on Power Trading Radio.


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New orders for U.S. manufactured durable goods rebounded by much more than expected in the month of January, according to a report released by the Commerce Department on Thursday. The Commerce Department said durable goods orders jumped by 4.9 percent after slumping by a revised 4.6 percent in December.

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It’s not often that you hit a significant Demand zone to the tick, then have it rally hard to the opposite Supply zone, to the TICK!! All during the same trading session! That’s exactly what Bill Henner and his students experienced during their trading class in New York City today. As well as anyone else following the levels on the MasterMind grid! Bill shares with us his thoughts on trade planning, as well as some answers to listener questions on the Euro, and getting stopped out!



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Merlin and Diana break down many of the misconceptions that reality TV has put in our heads when it comes to real estate! Whether you’re talking Fix & Flip, Wholesaling, Multi-Family or commercial, there are things you must know and do in order to be successful. Diana talks about how the 4 programs at OTA Real Estate are set up, what the primary objective is, and what separates these 4 courses apart from others in the industry.



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