One of Messenger Pro's most popular features is the Super Trade. A Super Trade is a market forecast for an unusually large, directional price move to occur over a short period of time. The Super Trade is a point-to-point price forecast. Thus, it identifies both the beginning and ending price of a future price swing before it occurs. This type of fast, directional price move is just what most day traders are looking for.

Super trades can occur at any time during the session. However, they are market volatility dependent (along with other conditions). Therefore, the number of super trades available will vary, often dramatically, based upon market conditions.

A Super Trade often consists of four components;

1. the initial Super Trade Indication,
2. a Confirmation,
3. a Time Target and
4. an Opposing Price Target

Indication<

The Super Trade indication identifies the forecast starting and ending price of the Super Trade. The Indication often appears as a single message, as shown below:

9:07:56 AM CST: HERE IS THE NEXT INDICATION FOR TODAY: ANY TOUCH AND HOURLY CLOSE AT OR ABOVE $850.00 MAKES $850.00 BUYING TERRITORY FOR A 23 POINT ADVANCE TO $873.00.

Therefore, the starting price of the forecast advance is $850.00 and the ending (or target) price is $873.00, 23 points higher.

Confirmation

Super Trades use the hourly close as price confirmation to begin trading the forecast move. In the above example, if the hour closed at or above $850.00 this would indicate the advanced to the $873.00 target was underway. Therefore, it is important to understand when the hourly close occurs and to note where prices are at that time. For your convenience (and clarification), each hourly closing price is noted by Messenger Pro.

The S&P 500 emini futures market opens at 8:30 AM Chicago time (CST). Therefore, 60 minutes later the first hour is complete (at 9:30 AM CST). Another 60 minutes later the second hour is complete (at 10:30 AM CST), and so on. In other words, each hourly close occurs on the half hour. The current market price at the hourly close is critical with regard to confirming the Super Trade forecast.

There are approximately 7 trading hours in each market session. You can easily see which hour the market is in by looking at the upper right-hand corner of the Messenger Pro window. A series of numbers (1-7) are displayed. The highlighted number represents which hour the market is in.

Let's take a look at the earlier Super Trade example for further clarification.

9:07:56 AM CST HERE IS THE NEXT INDICATION FOR TODAY: ANY TOUCH AND HOURLY CLOSE AT OR ABOVE $850.00 MAKES $850.00 BUYING TERRITORY FOR A 23 POINT ADVANCE TO $873.00

In this case, If the price is at $850.00 or higher upon the hourly close, this is confirmation that the forecast Super Trade advance is underway. From that point forward, any hourly close below $849.00 negates (or cancels) the forecast advance to $873.00.

Keep in mind that although the market may have declined below $850.00 during the confirming hour, it is the hourly close (closing at or above $850) which is considered confirmation of the Super Trade.

Under certain market conditions a trader could begin trading the Super Trade prior to the confirming hourly close. Again, using the above example, if the market tested the $850.00 confirmation level and quickly advanced to $860.00 (10 points higher) prior to the hourly close, a trader could consider the forecast advance (from $850.00 to $873.00) already underway, and enter the market in the direction of the Super Trades final target (in this case $873.00). Messenger PRO may also begin to issue buy orders for new long entry prior to any further hourly closing confirmation.

Time Target

Often, a Time Target will be messaged to identify which hour of the trading session the Super Trade's target price is expected to be reached. Knowing when a price target is due to be reached can be very powerful trading information. This timing information is made available in a subsequent message to the original Super Trade message. Using the $850.00 advance to $873.00 example above, the Time Target message might state: 'THE $873.00 UPSIDE TARGET IS DUE TO BE REACHED IN TODAY'S FOURTH HOUR'. Therefore, the $873.00 upside target would be expected to be touched during the fourth hour of that same session. This can be very valuable trading information because it identifies exactly how long the forecast move should take to complete. Although the time target is normally accurate, on occasion the price target may be reached prior to or after the indicated Time Target.

Opposing Price Target

Messenger Pro will identify a Opposing price target in case the hourly close negates the original Super Trade Indication. This Opposing price target is just as valuable to traders as the original price target and can be traded to with the same confidence. This Opposing Price Target message is a subsequent message to the Super Trade message.

Using the $850.00 advance to $873.00 example above, the Opposing Price Target message might state:

THE $873.00 UPSIDE TARGET IS DUE IN TODAY'S 4TH HOUR IF THE MARKET FIRMS AT $850.00 (CLOSES HOURLY ABOVE) AS NOTED IN TODAY'S 9:07:56 SUPER TRADE POST. CONVERSELY, ANY HOURLY CLOSE BELOW $849.00 IS THE WEAKER POSITION AND INDICATES LOWER PRICES, INCLUDING A TEST/ATTEMPT AT $839.00 DURING THE SAME TIME FRAME

This message states that any hourly close below $849.00 will negate the original $873.00 upside price target and set the new downside price target to $839.00. Messenger Pro will now begin setting up trades on the downside based upon the new $839.00 downside target. It will also identify an hourly closing price level which would negate (or cancel) the forecast $839.00 downside target.

How to trade the Super Trade

Many subscribers trade the Super Trade exactly as Messenger Pro does, never intentionally risking more than 1.5 points. Although keeping risk small is an admirable trading quality of Messenger Pro, it may result in missing entry on the forecast move. More advanced Messenger Pro subscribers often utilize their own entry and exit strategies (and use more risk) to better take advantage of the entire Super Trademove.

When trading a Super Trade on your own (utilizing your own entry and exit strategies) it's often a good idea to place your protective stop somewhere below the confirming hourly close price. Using the $850.00 advance to $873.00 example above, you may set your stop slightly below $850.00 to allow the market room to test the $850.00 confirmation level.

For example, if after testing $850.00 the hour closed at $855.00 (thereby confirming the Super Trade), a new long position could be placed at the current price of approximately $855.00. A stop placed somewhere below the $850.00 starting price (perhaps at $849.00) would give an approximate risk of 6 points (your long entry at $855.00 – your stop at $849.00 = $6.00). Since this Super Trade indicated a 23 point advance (from $850.00 to $873.00) a $6.00 risk would give a risk/reward ratio of 3 to 1 which is an excellent trade profile. This is simply an outline. You may choose to take more or less risk according to your own entry/exit strategies.

A suitable exit strategy referred to as "scaling out" is an excellent way to protect your profits during a Super Trade. The scaling out exit strategy means that you exit your long position from $855.00 in several planned increments as the market advances towards the $873.00 final upside target. This strategy balances risk and reward and often is the superior overall approach, rather than exiting the entire long position at one specific price.

We are going to use the following example to show one of the many ways to take advantage of the Super Trade. First, here is the messaged Super Trade indication:

9:07:56 AM CST: HERE IS THE NEXT INDICATION FOR TODAY: ANY TOUCH AND HOURLY CLOSE AT OR ABOVE $850.00 MAKES $850.00 BUYING TERRITORY FOR A 23 POINT ADVANCE TO $873.00

Second, here is the messaged Time Target portion of the Super Trade, along with the Opposing Price target:

9:13:08 AM CST: THE $873.00 UPSIDE TARGET IS DUE IN TODAY'S 4TH HOUR IF THE MARKET FIRMS AT $850.00 (CLOSES HOURLY ABOVE) AS NOTED IN TODAY'S 9:07:56 POST. HOURLY CLOSES BELOW $849.00 ARE THE WEAKER POSITION AND INDICATE LOWER PRICES, INCLUDING A TEST/ATTEMPT AT $839.00 DURING THIS SAME TIME FRAME.

Assume that at 9:30:00 AM CST the hour closed at $855.25 (well above the $850.00 starting/confirmation price) and you enter long the market at this price ($855.00). You would then set your protective stop slightly below $850.00, for example, at $849.00. You would then scale out of your long positions as the market advanced toward the $873.00 target.

From this point forward, if the market were to close any hour below $850.00 (prior to completion of the $873.00 upside target) the Super Trade forecast would be negated. Then according to the 9:13:08 Opposing Price Target post (shown above) you could then start a new short position, using the $839.00 opposing short target.

There are many ways to take a advantage of a Super Trade. The example above is simply a common approach that Messenger Pro subscribers utilize. PageTrader highly recommends paper trading initially to develop a method you are comfortable trading with.