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Trading Short-Term Market Cycles with Market Structure
Specs: 32 mins, 51 secs | 15.1 MB
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Trading short-term cycles in the market has made this trader steady profits since 2002. In this interview, trader Charles Pennison talks about how he combines overall market structure, monthly cycles and 2-5 day cycles to paint a picture of the markets that gives him clear signals for good trades. We discuss the support and resistance areas he watches, the timeframes he monitors, and ways he finds great trades in "price clusters and equilibrium zones." His surprisingly simple methods have given him consistent earnings for years and he shares his strategies openly and honestly in this interview. We also discuss the a specific type of Bollinger Band that he says works remarkably well in the S&P Futures markets and why a specific number of standard deviations give him advance notice of the direction of the market. Finally, we discuss the one tool he says has been a terrific one or two-day leading indicator of the S&P contracts - and it's something most everyone has access to but rarely uses.

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Trading Short-Term Market Cycles with Market Structure


TraderInterviews.com: Hello everybody and welcome back to TraderInterviews.com. Thanks very much for joining me for another episode this week. As usual, the idea of all of these shows is to give you some idea to think about in your own trading and kind of see how another trader approaches the markets. Everybody is a little bit different and has their own different ways of approaching the market, so I always think it's great to talk to a lot of different traders to find out what they're doing. And today's guest is Charles Pennison. He is a trader that I reached out too in wanting to find out about how he finds opportunities to trade everyday, and so we're going to talk to him. So Charles thanks very much for joining us on the phone today.

Charles Pennison: Well, I'm happy to be here.

TraderInterviews.com: Well, so I guess how would you describe your overall philosophy? Can you kind of, is there something you narrow down to say, "I'm a day trader, a swing trader, a technical trader, how do you describe yourself?

Charles Pennison: I'm a day trader of the E-mini S&P 500 futures and that's the only thing I trade, nothing else.

TraderInterviews.com: OK.

Charles Pennison: And I do technical analysis and market structure I would say is what I really look at.

TraderInterviews.com: Now, one of the things is you would email me over some things about your trading philosophy before we started the interview here. And you talk about, kind of, what sounds to be like kind of top down look, you look at kind of the overall market and then kind of dig deeper and deeper. Can you kind of talk about that?

Charles Pennison: That's correct, you know. Cycles. I really pay...

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