1. The Value of Indicators and How to Trade With Them
December 5, 2015

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3. MarketWebs Value Areas – Why?
What is a stock worth? Regardless of fundamental evaluations… Regardless of personal beliefs in the future of a company… Regardless of what others say… A stock is only worth what the market deems it to be worth. We of course hope to buy low and sell high, riding the wave of the market deeming higher value in the stock in time (or the opposite should we be short). But the intraday fluctuations of price give us a very important hint about the market: When there is an abundance of dealers in a market all acting independently of one another, price begins to disconnect from value (as they compete with each other for your business) allowing the possibility to buy low and sell high even when the market’s general value of the stock has not changed. What this means is that Price – so seemingly crucial to us traders – is no more than an advertisement and is not necessarily connected to the value (or “worth”) of a stock. This concept is crucial to traders, it is what allows for the opportunity to buy below value and sell above value, if we know the value! Yet Price tends to be the one ubiquitous input for every indicator/study/line-analysis that exists in the market today…. While Value is the most obscure… why is this?

4. Value Area – The Concept
$110 – Sellers are eager to sell, but buyers aren’t around, if they want to sell at all they have to reduce their ask
VALUE AREA HIGH $105 – Sellers are happy to sell, but buyers are starting to taper off, sellers may have to reduce their prices from here
POINT OF CONTROL
$100 – Everyone on all time frames is very content at this price to buy/sell
VALUE AREA LOW
$95 – Buyers are happy to buy, but sellers are starting to taper off, buyers may have to pay up from here
$ Buyers are eager to buy, but sellers aren’t around, if they want to buy at all they have to increase their offer

5. MarketWebs Value Areas – Why?
Say you want to sell your car: You go online to Kelly Blue Book type in the kind of car your selling, make/model/year and it tells you: $20,000 for low miles perfect condition $15,000 for average miles and average condition $10,000 for high miles and poor condition So you say great, I know my car isn’t bad and the miles aren’t terrible, so I’ll offer it for $20k and be willing to accept anything down to $15k.
Now what if that car is a VW Diesel and the news has just recently come out? You want to sell because you’re worried about the outcome of this news. Now what prices are you looking for? Maybe you offer it at $20k but there are no takers, everyone knows the news. Maybe you offer it at $15k but there are no takers, even in better than average condition, the news overshadows Maybe you offer it at $10k and hope… and perhaps there will be buyers there, but what is plainly clear is the market is no longer where it was. The “value” of the car, as determined by the market, has changed.
So what is the new value? The market has yet to decide that. You’ll likely find a buyer at $2k who is willing to buy your car for parts – worried that parts wont be available for their diesel in the future. But if everyone is trying to sell their car, there’s not even the “parts buyer” in the market.

6. MarketWebs Value Areas – Why?
There are two fundamental types of technical analysis: Empirical and Theoretical It is worth noting that ALL technical analysis – ie: anything that is based from a stock chart – is backward looking. It uses historical data (price movement, volume, etc.) to provide information that may or may not be helpful in the future. Fundamental traders attack this very point – history must have no basis on the future – yet they have to admit that even they look at historical fundamentals, compare them to the present, and project the future.
Empirical indicators: Most typically these are your momentum indicators. Those that attempt to track current trends up or down based on movement in the price/volume of a stock. These indicators in general do not provide any forward projections of specific price levels (ie: resistance/support) Examples: MACD, Moving Averages, RSI, Money Flow, Ichimoku Cloud, Bollinger Bands, Keltner Channels
Theoretical indicators: Typically these are focused on support/resistance prices where theoretically the market is likely to turn around. Chart drawings fall into this category. Examples: Trendlines, Fibonacci Levels, Pivot Points, Cycle Brackets, Pitch Forks, Head and Shoulders, Diamonds, etc.

7. MarketWebs Value Areas – Why?
Of course there are times that traders will make the attempt to take an Empirical Indicator and use it as a Theoretical Indicator. This is most effective when that trader is not alone in their methodology. Example: Using moving averages as a support level. A stock comes down to it’s 200dma and bounces. The bounce occurs because much of the market is looking at the 200dma as a support level regardless of its actual meaning in relation to the value of a stock. Example: Using an oversold RSI as a buy level. A stock moves to the upside because its RSI is too low. Given the equation of the RSI, a stock can consolidate for weeks at a specific price level and the RSI will no longer show oversold, however if the stock bounces it is because everyone believes it should bounce. No relation to value.
Because these are psychological moves based solely on price with no connection to value, they tend to be short-lived, but often long enough for short-term trading.

8. MarketWebs Value Areas – Why?
Taking all the aforementioned into account, there’s room in realm of technical analysis for something new for each category.
Theoretical Indicator -- MarketWebs Value Areas The value areas project price levels and areas that are derived from the market’s determination of the value of a stock – something lacking in all others indicators. This allows the trader to know when they may buy below value, sell above value, or buy at the lowest possible point and prices where the stock is likely to stop rising.
Empirical Indicator – MarketWebs AlphaTracker Most of the empirical indicators I have discussed so far have a certain amount of lag built in, the stock needs time to move according to the equation to trigger a “trend”. AlphaTracker instead is a zero-lag empirical indicator showing exactly when buyers have stepped in (ie: they like the current price) and when sellers step in.
In effect I describe the combination as the following: The Value Areas provide reasoned information about what price-action “should” do at certain levels (ex: sellers should step in at X price, buyers at Y), AlphaTracker shows what “actually does” happen in real-time (ex: buyers did NOT come in at Y price, it’s not time to buy yet the market value has shifted and its trying to discover a new value).

9. MarketWebs Value Areas – Why?
Case study: CMG Friday 12/4
Why this? Sellers have exhausted themselves, other indicators may cause retail trendfollowing, but its not an actual bullish case!
Thursday’s seller still short
AlphaTracker picked up large sale on the close of Thursday
Sellers at VAH
Buyers below VAL
Price Discovery shifting value lower
Price Discovery shifting value lower
Nothing but selling by nominal trades
Short time-framer covering short for scratch/loss

10. MarketWebs Value Areas – Why?
So what should a trader use? Regardless of what technical analysis you use – if you’re a trader that uses any at all – you should keep these two categories (theoretical and empirical) in mind and use one at least one indicator from each category. As most well-known and platform-included indicators have their pro’s and con’s, it is worth understanding the equations behind the indicators (and if not the equations, at least what input they’re looking at) and trying to combine multiple indicators that each look at different pieces of data.
When indicators that follow different data are in agreement, those are signals for trading. While it is very important to get used to a single indicator, there is no single silver bullet, it is worth learning a few and using them in conjunction.
I personally use the Value Areas and AlphaTracker in all of my trading as they provide for me the best aspects of both types of indicators as well as providing strong improvements over the freely available types.

11. MarketWebs Value Areas – Inside Value Setups
Starting the globex and regular trading inside of value
Value Area High (VAH)
Point of Control (POC)
Value Area LOW (VAL)
Doesn’t touch VAL in regular trading, this is info to carry forward
/ES – Aug 14th 2015, pre-market globex & regular trading

12. MarketWebs Value Areas – Breaking Value Setups
Value Area High (VAH)
Point of Control (POC)
Value Area LOW (VAL)
/ES – Aug 19th 2015, pre-market globex & regular trading

13. $299 Or Call 312-261-5581 The MarketWebs Value Areas for ToS:
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Yearly, Monthly, Weekly, and Daily Value Areas
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14. Following the Money The different components of AlphaTracker
The Upper Study – The Defensive Lines When big money takes an action that absorbs a significant amount of volume on the other side of the market, a defensive line is drawn on the chart, this price level becomes a significant support/resistance for price.
Strongest (for 5 days) Seller Defensive Line
Mild Buyer Defensive Lines
Mild Seller Defensive Line
Strongest (for 5 days) Buyer Defensive Line

15. Following the Money The different components of AlphaTracker
The Lower Study – The Big Money Actions & Cumulation for the Day When big money takes an action that is out of the norm for volume, it will show up as a bullish or bearish bar depending on buying or selling. The cumulative positioning of each participant from close to close will also be tracked
Big Money cumulatively long for the day
Big Money Mild Buying
Big Money Strong Buying
Big Money Strong Selling
Big Money Mild Selling
Blue horizontal line shows Big Money cumulative position today Yellow horizontal line shows All Money (Nominal Money) cumulative position today Red horizontal line shows Small Money cumulative position today
Big Money cumulatively short for the day

16. Following the Money The different components of AlphaTracker
The Lower Study – Swing Mode Swing mode tracks the cumulative positions of all participants for the past 20 day period.
UOA to be looking for / avoid
Current positioning (+ for long – for short)
Big Money Reduced their longs on Friday
Big Money started buying with little price movement
Relative Price Plot
Big Money
All Money
Small Money

17. The AlphaTracker Indicators for ToS:
The AlphaTracker Indicators for ToS: **Limited Availability Offer – only 35 spots available!**
AlphaTracker Lower: $799 Value
Track the actions of Big Money / All Money / Small Money
Day Trading / Swing Trading & Suggestions about UOA
AlphaTracker Upper: $499 Value
See where Big Money defends price levels
See new pivot points no one else sees
Works for ALL Equities, ALL Futures, ALL ETFs!
BONUS: 4 Hours of Recorded Mentoring Sessions: $799 Value
Learn how best to trade around the actions of Big Money
Learn how to analyze the data to decide for a swing short or long
Learn how to day trade the futures / equities using the actions of big money
Not a subscription! One time purchase, you’ll receive all updates for free!
No refunds, once you buy it you own it for life!
Total Value: $ KOTM REGULAR PRICE: $999
Over 70% Discount Today Only!
Holiday Special
$299
Or Call