Volatility Indicator

Volatility Indicator


Trend Trading Using BlackBoxStocks Volatility Indicator

Mr. McDeggins shares his strategy using BlackBoxStocks alert stream, volatility indicator, news feed, and education to gain an advantage trend trading.

My name is Andrew. Some of you may know me as Mr. McDeggins and I will be guiding you today in this little orientation of how I like to use the BlackBoxStocks trading system to help me make money. First thing that you’re going to notice when you land on our website is that everything is very clean. Everything is very accessible to you. Everything that you’re seeing here is crucial to helping you become a successful trader, and I’m going to show you how these tools have helped me.

One of the first things that I like to do when I come in is to check out the alert stream. This alert stream is a priceless tool. It will give you information such as what is hitting new 52-week highs, what is hitting new 52-week lows. It will tell you about stocks that are having new intraday multi-highs and it will also give you a window into dark pool trading. For those of you that don’t know, the dark pool is the exchange where most of these gigantic institutions are placing their trades. So, we have a window into dark pool trading built right into the BlackBoxStocks trading system.

In the alert stream you can filter out any information that you would like to see. All you do is click the green filter button in the middle of the screen, and boom now you can filter out what you want to see. You want to see stock halts? You want to see 52-week highs? 52-week lows? You want to focus strictly on the dark pool? You can absolutely do that by utilizing the alert stream filters. The filters an awesome tool that was added at the request of our family of traders.

Now, when I’m watching over the alert stream, I like to trade lower price point stocks. You can configure the BlackBox platform to only show you the price points that you are interested in trading. The way you do it is simply hovering right over this symbol. And what’s going to pop up is a list of price points. If you only like to trade Blue Chips, you can set the filter for over a hundred dollars.

For the sake of demonstration today, I’m going to click the stocks that are trading under $5.00. When I do this, the entire system will shift over to only focus in on those stocks that trade within my price point. So, now the alert stream is only focusing on stocks under five dollars and the alert log is only showing alerts from stocks that are under five dollars.

In the pre-market session, and in the early hours of market and during market hours, I like to pay very, very, careful attention to the alert log. If I see something come through on the alert log that is garnering my interest, I’ll simply click and boom, the advanced charting system will load up. The BlackBox proprietary one-of-a-kind volatility indicator will also load too.

I see we had some action on FCEL this morning in the pre- market and in the beginning seconds of market. I noticed that we had some really unusual volume as opposed to the day before. So, what do I do? How do I find out what’s causing all this madness? I check the real-time news feed. The news feed is provided by ‘Fly On The Wall’. If you look, ‘Fly On The Wall’ charges $40 a month for access to their streaming news feed. It is built right into the BlackBoxStocks trading system. We’ve got the news as soon as it drops, so when this alert comes in, I can look at this news and see that it is restructuring news.

I know that this stock is going to run and have some action to it. What I will then do is watch the volatility indicator. If I’m late to the party or I got the news too late into market and I notice that we already passed the high of day and now we’re continuing up. I would wait for that next pull back, and the way I would do it is by watching this volatility indicator. This volatility indicator is one of a kind, you will not find it anywhere else in the world and I love to use it because it will actually help you see where that pullback is going to end.

First, I would watch this volatility indicator and when I see that the volatility indicator shifts from red to green and is giving me some consistency; I know that the pullback is probably going to end around that area. So, it would be a safe place for me to decide to enter my options scalp, and there it is. That’s one way I use the system. You jump in, you check the news, you check the alerts, you watch the volatility indicator, and it’s off to the races.

I used to strictly trade the OTC for a very long time, but now I have switched my focus over to options trading, and now is the time that you are all going to learn why. This is the options tab, and honestly, I like to call this section of the website the holy grail for options traders. It is going to provide you with information that is priceless in helping make decisions based on what to enter and what not to enter. The trick is when you’re using the options flow is to look for consistency. What we know are these white alerts tell us that open interest has not yet been exceeded for the day. When these white alerts come through and then they start to turn purple, that tells us that open interest has now been exceeded. If you see a yellow alert come through, that means that open interest has been exceeded in one trade. These are opening transactions and we know that because open interest has been exceeded in one trade.

Personally, I like to trade options, and I’m specifically looking for sweeps. Primarily, I want them to be at or above the ask. I will just click the at or above the ask filter and generally I like to get rid of these white ones. I like to just focus on the magenta’s and the yellows. Now, let’s look at Disney, we have a lot of options flow in Disney today. If I notice that we’re having a lot of these Disney calls, if I notice consistency, that’s the trick. If I notice that consistency, I’ll zoom in strictly on the Disney options flow and it’ll show me that there is a lot of flow to try and make sense of.


BlackBox Heat Map

So, once that consistency starts coming through, BlackBox has designed a tool that will let you get all caught up in seconds on what an entire days’ worth of options flow means for a stock. That is the options flow heat map. If I click on something and I’m noticing consistency; the pricing on the stock is trending upwards, and I’m noticing the pricing on the contracts are trending upwards. Just to be sure if there’s any doubt left; all I do is go to the options flow heat map. This heat map is an awesome tool. It will give you a live graphic representation on what all of the options flow for the day means.

We’ve got the strike prices running down the center. C0 calls it expire this week. C1 calls it expire next week. C2 calls that expired all subsequent weeks. On the right side, we’ve got P0 puts means it expire this week. P1 puts it expires next week, and P2 puts it expires in all subsequent weeks.

If you see black shade text over here, that means that most of these contracts traded between the bid and the ask price. Blue text means most of these contracts traded at or above the ask price, and red text means most of these contracts traded at or below the bid. Red shading is indicative of bearish activity and green shading is indicative of bullish activity. I can instantaneously pull up this heat map and make sense of an entire days’ worth of option flow. When I look at this heat map, I can see it looks like twice the number of bullish contracts traded for this week then we had bearish contracts. So, this is bullish, and what do you know? We had bullish trending today. This options flow heat map is another great tool that I like to use to help me, if there’s any doubt, once I found my consistency.

At the same time, let’s say listen, I can’t always be in front of my computer all day long. I can’t do that, and maybe you can’t either, maybe you’ve got to be somewhere. Maybe you trade from work, maybe you have a job. BlackBoxStocks has an alert system for options trades unlike anything that I’ve ever seen. This is amazing stuff, these were the alerts that we had for this day, just for today. And out of all these alerts, 2, 4, 6, 8, 10, 12, 14, 16, 18, alerts every single one of them was potentially profitable at one point or another. Ranging from two percent gains to over three hundred percent gains intraday. Today alone, we had three gainers that were over a hundred percent, three gainers that were over two hundred percent. Awesome stuff!

The way I like to use these alerts is to wait for the alerts to come through. You can have these alerts sent to you just like a text message through your mobile device. As long as you join our private members-only Twitter feed and configure your notification settings to do so. These alerts will be delivered to you just like a text message, so you can trade with BlackBox wherever you are. And if you’ve got a good risk reward system in place, and you’ve got a nice trailing stop loss in play, these alerts will do very well for you. I love, love, love to trade along the BlackBoxStocks alerts.


BlackBox Boot Camp

Twice a week BlackBoxStocks offers a live boot camp covering trading techniques and strategies using the platform. The boot camps are live every week because we want to be able to answer any questions that you may have. In the bootcamp we cover the basics of investing and trading, and we do a deep detailed walkthrough of how to use the BlackBoxStocks trading system. We go through all the alerts, we go through all the colors, we go through every nook and cranny of this system to help you master the use of the resources that BlackBox provides, so that you can become a self-sufficient trader and a contributor to our BlackBoxStocks family of traders.

Speaking of our family of traders, in the boot camp I also take you on a walk through the trade rooms that we have. BlackBox provides both stock and options trade rooms. The stock trade room can be accessed right here on the BlackBox trading system website. You will also find plenty of experienced traders in our community trade room on Discord to ask questions of and trade alongside.

In conclusion, using the BlackBox platform, what I like to do is follow the consensus plays. I like to look for consistency. I like to play the bouncer alerts when I see them, and more than anything, I really just love to watch over the news stream during the day. I set it on all news and boom, I watch the news. I’ll watch the alerts and I’ll rock and roll just like that. That in a nutshell is how I like to use the BlackBoxStocks trading system, with just a couple of different strategies that I use to help me make money, and I hope you are able to get something out of it.