How Does Daniel Code Trading
Work & What Should You Do

Some subscribers have even apparently cancelled their subscription because they were not able to understand the trading code numbers.

Obviously they didn't "get it". Some have written to say "I am seeing markets turn at these DC numbers but I can’t trade them".

To clarify your thinking John Needham is providing some Trading Signals from one of his proprietary turn indicators that does a pretty good job of identifying turns.

The trade signal is made at the end of a daily bar and the signal is either "On" or "Off". The signal usually lasts for 2 days but can be just 1 day or extend to 4 days on occasions.

 
When the indicator is "On" it is time to pay serious attention to that market with reference to its proximity to the nearest DC price level and your own turn indicators. If you do not have your own market turn indicator than the simplest one to use the MACD moving average, It is easy to get and easy to follow.

Mr. Needham calls his Proprietary trade signals, JCN.T.03. You can find them at his website. Daniel Code Trading requires that you trust the teacher. Why wouldn't you want to? He is proven that his system works.

He writes, "When the JCN.T.03 indicator is "On" and the bar also has its high/low within the required variance to a DC number, odds favor a turn in 1-2 days. Don’t substitute this indicator for your other trading tools. Use it as an adjunct not an alternative. All indicators work some of the time and none work all of the time, but I hope it will help you focus on the high probability time for turns.

The turns can be as simple as a 1 day trend reversal or as important as a major change in trend, and nothing in this particular indicator tells us which it will be (although by layering the same indicator across differing time frames we can get a pretty good idea), so make sure you protect profits and use proper stop loss management."
 

I suggest that you try to think of JCN.T.03 more as "Can this be an interim high/low"? rather than "Is this it sport!!" This is a fairly fast version of the indicator so is best suited to trades in daily or shorter time frames.

Sometimes the turn will already have been made when the T.03 signal is activated. Nothing is perfect!!

U.S. futures market signals are generated around 19:00 US CST or 24:00 GMT for the next trading session and Forex signals may be 30 minutes later.

For those of you not running your forex charts on GMT, the daily bar in forex ends at 21:59 GMT

Daniel Code Trading is an "art" and not a science. Once you get the feel of it, you will not loose the ability. It requires that you have faith in the beginning and with that comes an understanding. If you try to find the flaw in the system you will fail.
 

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