Reading Signals.
The Long/Short signals populating your chart are the result of an algorithm that’s active 24/7. That algorithm is called Jarvis.
These visual signals simplify execution, but they aren’t magic Buy/Sell buttons. Treating each one as a command to trade isn’t the right strategy for success. Instead of using signals as another reason to trade reactively, use them for their true purpose: making trade decisions so simple you can make them instantly.
Understanding how signals form will help you know when to act, and which ones to filter out. Reading the signals is simple, and once you do, you won't have to overthink every trade.
From here on, let’s call them what our traders know them as: Jarvis Tags.
102.1 What Tags Tell Us
Jarvis tags are indicators that depict high-probability setups on each unique trading chart.
Using rules-based logic, Jarvis is constantly crunching thousands of data points, including indicators, live ticker performance, and historical market data. It uses this data to produce Long/Short tags for each symbol and timeframe.
If you’re viewing the tags on a SPY 1m chart and change the timeframe to 15m, you’ll see a new set of tags generated specifically for that timeframe and ticker. Jarvis understands that entry objectives differ on each chart and adjusts the variables accordingly.
Disclaimer: Jarvis Long/Short tags identify probability. They cannot predict or guarantee market moves or profitable trades.
102.2 Acting On Tags
Once a tag appears, it locks in only when the candlestick closes above the signal threshold. Until then, a signal can appear and disappear within the same candlestick as price oscillates.
When a candlestick forms with a tag, that's your decision point. Jarvis is signaling a probable setup, and you decide whether to take a position.
On a typical day, Jarvis may populate 5-12 Long or Short signals on a 1m chart. The software reduces trading decisions that used to govern every second of the day down to those 5-12 moments, ensuring data-backed reasoning behind each.
Choosing not to trade on certain tags is central to the Jarvis strategy. Below, we cover conditions that might cause traders to intentionally stay out when a live tag forms.
With Jarvis, the choice to trade or wait is always yours.
Tag Permanence
A fully formed tag stays on the chart permanently as the ticker moves forward. Tags in the backlog were also formed in real time and can be viewed by scrolling or using the Calendar feature in the bottom-left of the Dashboard.
We encourage traders to review past tags for backtesting your Jarvis trading strategies.
Tag Cadence
Two consecutive Long or Short tags will never occur.
If you missed a Long run while away from your screen but believe there’s more left in the trade, wait for the Short Reset Tag. It will then become possible for a new Long tag to form, validating re-entry.
102.3 Risk Management
Traders using any strategy must define risk management for the tools and indicators they rely on. For Jarvis users, this means identifying the conditions that would rule out certain tags from trade consideration.
Over the years, we've developed a few rules to help traders avoid certain setups.
- Only trade on tags. Tags give every trading decision an objective framework, helping you avoid chasing, overthinking, overtrading, and emotional revenge trades.
- Rule out: Trading off-tag
- Trade away from VWAP. The purple VWAP indicator is always live on our screen. It's the one consistent metric that governs how we value Long/Short tags.
- Rule out: Long tags under VWAP, Short tags above VWAP
- Act after tags lock in. Trading before a fresh tag’s candlestick closes can seem tempting, but it can still flicker away, leaving you in a position with no validation.
- Rule out: Premature entry on unformed tags
Other strategies will develop over time, or fit specific situations, but we consider these to be universal for all Jarvis traders. Profitable trading starts with protecting your downside.
Pro Tip: Want to take it a step further? See our Trifecta strategy for day trading options with Jarvis.
Now that you know how Tags work, it’s time to see how Jarvis guides a sound exit strategy for each trade.
[103: Exits & Indicators Explained >]