E-Zone Menu: Overview How to Trade Product Description Example FAQ Sample Results Quick Quote Portfolio

How to trade stocks and ETFs using the E-Zone System

Understanding Entry Zones and Exit Zones and when to buy or sell

What is the E-Zone System?

The E-Zone System shows an Entry Zone (for buying) and an Exit Zone (for selling) The zones are displayed historically along with the stock price.

The crucial difference between the E-Zone System and other products is that we project into the future what the zones will be for the next day.

In addition to the daily E-Zones, we provide weekly E-Zones that project the Entry and Exit zones for the coming week, beginning with the next Monday. These are for investors and traders who prefer a broader, longer view.

What is the purpose of the
E-Zone System?

The E-Zones are there to help you...

Know when to sell, when to buy and when to be out of the market.

Know where the smart entry points are, where to average down, and where to begin taking profits.

Avoid costly "Buy & Hold" mistakes.

A bit of history...

Market down-turns can take a severe toll on investors using a "Buy & Hold" strategy. The E-Zone System was originally designed to help an investor protect his portfolio by showing when it is time to "take money off the table" and when it is safe to begin "averaging down".

In use since 2002, the E-Zone System soon became a favorite timing tool for swing and day-traders as well as investors. We invite you to add the E-Zone System to your tool kit.

What do E-Zones look like?

This is an example of an E-Zone chart. Note that the stock prices in candlestick format are overlaid on top of the E-Zones.

After reading the information below, come back and take a look at this chart.

Note the nice swing trade in the beginning of May. The price for Cigna fell into the Entry Zone on May 1, 2013 and subsequently, on May 2, price moved up quite nicely, actually past the top of the Exit Zone.
Example of a chart showing Cigna Corp.(CI) and E-Zones

Basic Concepts

The E-Zone System shows the Entry Zone (green) and Exit Zone (red) projected one trading period (one day or one week) into the future.

The basic trading process is as follows:

When opening price falls within one of the zones, take the corresponding action as shown in the diagram at the right.
E-Zone System basic concepts

Special Considerations --
Market Volatility

Market Volatility requires a more conservative approach

Limit your trading as follows:

BUY when price is in the Entry Zone and the bottom of the Entry Zone is slanting upward; otherwise, take no action.

SELL when price is in the Exit Zone and the top of Exit Zone is slanting downward; otherwise, take no action.

Use the last two data points on the E-Zone chart to see whether the zones are flat or sloping upward or downward.

Look for our detailed guidance displayed right next to the chart.

Out-of-Zone Guidance

There are times when Buy or Sell guidance is valid even if the price is NOT within a zone

Price above top of Exit Zone

  • Exit Zone slanting UP => Buy but keep tight stops
  • Exit Zone slanting DOWN => Sell

Price below bottom of Entry Zone

  • Entry Zone slanting UP => Buy but keep tight stops
  • Entry Zone slanting DOWN => Short with tight stops

Sound complicated? Don't worry. Look for our detailed guidance displayed right next to the chart.

Example -- When Zones are slanting UP

This kind of situation often occurs when a stock or ETF is making a bullish move upward.

The slanting angle of the lines (also known as the slope) is found by looking only at the most recent two data points. We will tell you if the angle is significant enough to trade.

Note that we are only concerned with the TOP of the Exit Zone (red) and the BOTTOM of the Entry Zone (green).
How to trade when E-Zones are slanting UP

Example -- When Zones are slanting DOWN

This kind of situation often occurs when a stock or ETF is making a bearish move downward.

The slanting angle of the lines (the slope) is found by looking only at the most recent two data points. We will tell you if the angle is significant enough to trade.

Again, note that we are only concerned with the TOP of the Exit Zone (red) and the BOTTOM of the Entry Zone (green).
How to trade when E-Zones are slanting DOWN

Today's Call and E-Zone Guidance

We don't leave you on your own to puzzle over the charts.

The E-Zone System always offers a signal (the Daily Call) based on the day's current price.

The E-Zone System also provides market guidance for the following day. This guidance tells you what to do if the next day's price falls within the Entry Zone or Exit Zone or above the Exit Zone or below the Entry Zone.

These are the kinds of signals you are likely to see in the Daily Call:

IndicatorAction
Red up arrow Above the Exit Zone SELL
Red up right arrow In the Exit Zone
Blue double arrow Neutral HOLD
Green down right arrow In the Entry Zone BUY
Red up arrow Below the Entry Zone
Blinking = Now in the New Zone

See E-Zones in action...

We provide a live example of what the E-Zone System looks like. It even includes an explanation of important features.

See today's daily and weekly charts for QQQ and read the daily call, tomorrow's guidance and next week's guidance.

[ Click here ] to see it all now!
Try the E-Zone System
See E-Zones in action!
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E-Zone Menu: Overview How to Trade Product Description Example FAQ Sample Results Quick Quote Portfolio
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