Every trader has had the experience of selling a stock or commodity too soon during a rapid price

Size: px
Start display at page:

Download "Every trader has had the experience of selling a stock or commodity too soon during a rapid price"

Transcription

1 Article Text Copyright (c) Technical Analysis Inc. 1 Stocks & Commodities V. 9:10 ( ): Trading The Regression Channel by Gilbert Raff Trading The Regression Channel by Gilbert Raff Every trader has had the experience of selling a stock or commodity too soon during a rapid price reversal, only to realize in retrospect that this was a consolidation within a trend. Or just the opposite: perhaps the trader watched profits evaporate when the "consolidation" became a downhill avalanche. A vast array of methods exists to describe price movement, ranging from trendlines to Fourier analysis. The ideal description of a trend would provide clear recognition of its start, trading range and termination. The ideal tool would permit the trader to know exactly when to enter a trade, when to exit, when to trade contrary to the trend and when a new trend had started. The ideal tool would also give a good sense of whether price action was likely to be worth the risk of any trade at all. While we don't expect perfection, most traditional description of trends fail miserably to measure up to our ideals. The regression channel is a technique I've developed that provides many of these stated needs, including the ability to predict reversals within the trend and, frequently, to project the end of a trend weeks in advance. To start, let us review two classic descriptions of trend. The first describes an uptrend as a sequence of higher highs and higher lows. In Figure 1, a daily price chart of Blair Corp. (BL), an uptrend begins at point A and ends at point B. From point B to point C, there is first non-trending action, then a lower low at C. Presumably, trend AB is over. Figure 2 shows the same security later. Much to our chagrin, exiting at C was a mistake. The second classic description of trend defines it with a trendline. Figure 3 represents the uptrend defined by the line joining lows C, D and E. At F, a new low breaks the trendline decisively. Where do we go from here? Future price action is shown in Figure 4. DEFINING THE REGRESSION CHANNEL

2 FIGURE 1: Figures Copyright (c) Technical Analysis Inc.

3 FIGURE 2: FIGURE 3:

4 FIGURE 4: FIGURE 5:

5 Article Text Copyright (c) Technical Analysis Inc. 2 Stocks & Commodities V. 9:10 ( ): Trading The Regression Channel by Gilbert Raff These results were unsatisfactory, so I undertook the development of a better method. First of all, to describe price direction and strength I chose linear regression, the least-squares best fit line between two prices. In Figure 5, the linear regression of price between two intermediate-term swing points is drawn as line Z. From Z, a quantitative description of strength and direction of trend AB is available as the slope of Z, the rate of change of price over time. The larger the absolute value of slope Z, the faster price is going up or down. A low or zero value for Z suggests that the market is not worth the risk of a trade. Between A and B, the market drifts away from the Z line both above and below, but at least during time AB, the market always returns to the trendline. To describe this quantitatively, we define the channel range: the extent of movement away from the trendline the market will tolerate before trend AB disintegrates. The channel range in this example can be described by finding the point furthest below or above Z in AB. In Figure 6, we've chosen the high at the point that we refer to as RCH (short for regression channel high). Returning to point A, draw a line parallel to Z that intersects RCH. This line is the regression channel top (RCT). This line has a constant distance for Z called the channel range (CR). Now return to A and draw a line parallel to Z at CR below it. Note how the regression channel bottom line then predicts the later regression channel low at RCL. If we have done our work accurately, we will find that one extreme will predict subsequent highs and lows and incorporate the market action in between. This is the essential strength of the regression channel. At some point in the development of a price move, the market's direction can be described by Z and the price variability can be described by CR, sometimes with an amazing degree of accuracy for many months. Once the channel is constructed, we then project Z, RCT and RCB lines into the future. If the regression channel is to be of practical use, it must exhibit predictive behavior. Do the lines drawn at RCH really predict price turns? In Figure 7, we see that four months after RCH, Blair turns right on the RCT line (at point C). What else can we observe here? Note that through all six months, the line Z repeatedly serves as an important support and resistance line. It does so for the last time just after C, when support fails and the trend referred to AB ends decisively. During these six months, several non-trending periods by simplistic definitions appeared, when the market was really running in a well-defined channel. But what about price move CD? Is there any way regression channel analysis can help the trader avoid going over the cliff? Superficially, the fall is so abrupt, it seems hard to avoid. Yes, it can be predicted, but to explain how, we must examine both the short- and the long-term trends. This is the essential strength of me regression channel. At some point in the development of a price move, the market's direction can be described by Z and the price variability can be described by CR, sometimes with an amazing degree of accuracy for many months. A complex of short-, intermediate- and long-term trends lies beneath the surface of the daily market

6 FIGURE 6: FIGURE 7:

7 FIGURE 8: FIGURE 9:

8 Article Text Copyright (c) Technical Analysis Inc. 3 Stocks & Commodities V. 9:10 ( ): Trading The Regression Channel by Gilbert Raff action we've plotted. The trader must explore them all to understand where he is on the "map" of the market. The idea is to analyze different time scales to get clues about important or confusing events. For my purposes, since I prefer to trade the intermediate trend, I omit the intraday level and use short-term swing points to indicate those on the level of a daily chart. In Figure 8, within the now-familiar AB channel, short-term channels have been constructed, showing obvious utility to the short-term trade. For example, the point RCL becomes an attractive entry to a trade managed by a trailing stop-loss just below short-term regression channel line RCL-B1. Note also the tendency for the short-term channel to converge toward and break at the AB intermediate-term regression line Z. This is known as channel intersection. We will always look to reactions at intersections between channels of different time frames. Is there any way we could have anticipated the waterfall slide from point C to point D? To the short-term trader, with a daily chart perspective, no, but the short-term channel bottom with a trailing stop still takes the trader safely out with a profit at C1, comfortably before D. But move CD can be predicted by the intermediate-term trader who wants to ride the AB channel to its end without constantly trading in and out. The answer lies in looking at a long-term chart. In Figure 9, we see the chart of Blair Corp. for the 15 months preceding point C. It is now clear that point C is the first break above the RCT line for When a market breaks above its long-term regression channel it is often dangerously overbought and liable to result in violent corrections. Channel AB appeared to have been on a collision course with the long-term RCT for the last six months. Channel intersections can be anticipated to be points of volatility and price reversal. By taking these factors into account, an astute trader would take his profit at point C1 and be satisfied. Market indices and commodities show similar behavior. In Figure 10, the weekly cash Standard & Poor's 500 index is shown between 1981 and The 1987 crash occurred after the only move above the RCT in 10 years, and the results are analogous to line CD in Blair Corp. Note also how the October 1987 bottom predicted the October 1990 bottom. AVOIDING PITFALLS How can we know when we've drawn a valid channel? A valid channel will demonstrate predictive behavior. It should define and predict swing highs and lows within its market time frame. At channel intersections, resistance or volatility should be the key. Before I trade a regression channel, I look for evidence to validate my construction. For example, let's begin a new regression channel analysis of AT&T on April 9, 1990 (Figure 11). Before drawing daily regression lines, step back and examine the long-term chart of weekly data using a regression channel spanning all the data (Figure 12). At the moment, prices have just broken above their long-term channel and may be in for a sharp correction. This is only a hypothesis at this point, but certainly that was not obvious from Figure 11.

9 FIGURE 10: FIGURE 11:

10 FIGURE 12: FIGURE 13:

11 Article Text Copyright (c) Technical Analysis Inc. 4 Stocks & Commodities V. 9:10 ( ): Trading The Regression Channel by Gilbert Raff The prediction of changes in price trends is me final and most intriguing application of regression channel analysis. This may seem far-fetched until we realize mat we are applying the principle of channel intersection to channels of different time spans. Now return to the daily chart and load the largest screen of historical data possible. Then go back and construct the regression channel for the preceding market trend (Figure 13). Why use point C to measure the channel range, rather than D? Point D was a price spike, a very large, abrupt price move (the "minicrash" of October 13, 1989), in which prices may exceed their true range briefly. This is particularly important in volatile commodities. Let's see what we get by accepting the channel range described by point C. At E, prices pushed above RCT to an overbought extreme, then crashed (D). This is a reasonable channel construction, since it explains market action and that is the criterion for predictive behavior, the most important key to recognizing a valid channel. The more confirmations we get from the market's turns at channel lines, the more confident we are that we can rely on the channel and trade it. At point F, prices break the preceding channel and bring us up to date. Is there sufficient information to construct a correct new channel now? We can't tell yet. My approach is to use the previous method and see if the results fit the market's action. If so, we'll stick with them, but if not, we'll revise, and at some point we'll have a definitive channel with predictive behavior If this occurs early in the trend, we have a powerful tool to trade. If it occurs late, just before a trend change, we'll have to wait for another opportunity. In Figure 13, begin at point B and construct Z1 by connecting B to the latest trading day with a regression line. Since the trend is down, I measure the channel range first by picking B as the highest high. This doesn't work out well, since it excludes H, and there appears to be no valid reason why. I then refit the data, using H as the extreme, and the result is Figure 14. Based on the evidence of the long-term chart and the daily chart, would I be willing to use this chart and be ready to short AT&T? Not yet First, I would require proof from subsequent market action that the channel has ample accurate predictive behavior. If the channel is right, this is not long in coming. Let's extend our channel lines to the right and see what happens. In Figure 15, we see prices attempting to break out of our new channel. Point Z1 acted as a support line at I, at which point the RCT acted as a resistance line at J and then prices broke to K. At this point, several confirmations of our channel have occurred, and I would be willing to short AT&T. Figure 16 shows the result. The channel we constructed on April 9, 1990, defined prices for another 12 months and allowed us to immediately recognize a continuing uptrend. By using Figure 17, we could predict the end of the downtrend weeks in advance by observing the coming channel intersection at L. PREDICTING CHANGES IN TREND The prediction of changes in price trends is the final and most intriguing application of regression channel analysis. This may seem far-fetched until we realize that we are applying the principle of channel intersection to channels of different time spans. To answer the question of where we go from here, it is

12 FIGURE 14: FIGURE 15:

13 FIGURE 16: FIGURE 17:

14 necessary to ask where we have been. Add to this the quantitation possible with the regression channel, and prediction seems to become quite possible. The regression channel, which we can legitimately term a new method of trend analysis, allows notable precision in the quantitation of trend direction, strength, range, initiation and termination. Its use and the concepts of prediction behavior and channel intersection allow us to validate the channels, trade them and even predict trend change months in advance. Gilbert Raff is president of Torsede Investments, Inc. He has traded equities and commodities since He trained in math and computer science at MIT. Figures Copyright (c) Technical Analysis Inc. 5

Chapter 2.3. Technical Analysis: Technical Indicators

Chapter 2.3. Technical Analysis: Technical Indicators Chapter 2.3 Technical Analysis: Technical Indicators 0 TECHNICAL ANALYSIS: TECHNICAL INDICATORS Charts always have a story to tell. However, from time to time those charts may be speaking a language you

More information

Technical analysis. Course 11

Technical analysis. Course 11 Course 11 Technical analysis Topic 1: Introduction to technical analysis... 3 Topic 2: Chart types... 4 Line charts... 4 Bar chart... 4 Candle stick charts... 5 Topic 3: Trend analysis... 6 Defining an

More information

Trend Determination - a Quick, Accurate, & Effective Methodology

Trend Determination - a Quick, Accurate, & Effective Methodology Trend Determination - a Quick, Accurate, & Effective Methodology By; John Hayden Over the years, friends who are traders have often asked me how I can quickly determine a trend when looking at a chart.

More information

Chart Patterns Trader. Trader SUPPLEMENT. Understanding and Trading Classic Chart Patterns. By: Kevin Matras Zacks Investment Research, Inc

Chart Patterns Trader. Trader SUPPLEMENT. Understanding and Trading Classic Chart Patterns. By: Kevin Matras Zacks Investment Research, Inc Chart Patterns Trader Trader SUPPLEMENT Understanding and Trading Classic Chart Patterns By: Kevin Matras Zacks Investment Research, Inc Table of Contents Introduction.........................................................................

More information

How to see the market context using CCI Written by Buzz

How to see the market context using CCI Written by Buzz How to see the market context using CCI Written by Buzz Towards the end of September 2003, I decided to stop trading the S&P e-mini for a while and focus on the Russell 2000 e-mini. The swings seemed to

More information

Trading Lessons from the Intraday Frame (study)

Trading Lessons from the Intraday Frame (study) 1 Daily "Idealized Trades" Report Trading Lessons from the Intraday Frame (study) 1 2 SPY's 1-min Power Trend Chart (Additional Trades) 2 3 Lessons to Learn from Today's Trading Day Let's start as usual

More information

Sunil Mangwani www.fibforex123.com

Sunil Mangwani www.fibforex123.com The 123 chart pattern. The 123 pattern is a reversal chart pattern which occurs very frequently and has a very high success ratio. 123 s occur at the end of trends and swings, and they are an indication

More information

ADX breakout scanning ADX breakouts can signal momentum setups as well as exit conditions for intraday and swing traders. FIGURE 1: AFTER ADX > 40

ADX breakout scanning ADX breakouts can signal momentum setups as well as exit conditions for intraday and swing traders. FIGURE 1: AFTER ADX > 40 TRADING STRATEGIES ADX breakout scanning ADX breakouts can signal momentum setups as well as exit conditions for intraday and swing traders. BY KEN CALHOUN FIGURE 1: AFTER ADX > 40 Spotting volatility

More information

Secrets for profiting in bull and bear markets Sam Weinstein

Secrets for profiting in bull and bear markets Sam Weinstein Secrets for profiting in bull and bear markets Sam Weinstein 1. Check market indicators for overall direction 2. Scan the industry groups to know which one to zero in 3. Cull out the stocks with the most

More information

Understanding Classic Chart Patterns Recognia Inc.

Understanding Classic Chart Patterns Recognia Inc. Understanding Classic Chart Patterns Recognia Inc. www.recognia.com 2009 Copyright Recognia Inc. Table of Contents Introduction...3 Head and Shoulders Top...5 Head and Shoulders Bottom... 10 Symmetrical

More information

Contrarian investing and why it works

Contrarian investing and why it works Contrarian investing and why it works Definition Contrarian a trader whose reasons for making trade decisions are based on logic and analysis and not on emotional reaction. What is a contrarian? A Contrarian

More information

Day Trade System EZ Trade FOREX

Day Trade System EZ Trade FOREX Day Trade System The EZ Trade FOREX Day Trading System is mainly used with four different currency pairs; the EUR/USD, USD/CHF, GBP/USD and AUD/USD, but some trades are also taken on the USD/JPY. It uses

More information

The 15 50 Trading System

The 15 50 Trading System Main Premise: This is considered to be one of the most straight forward systems for a live trading style for day- and/or intraday trading. The 50 SMA is one of the most commonly used moving average numbers

More information

This tutorial was originally titled "Secrets to Successful Short-Term Trading" and was recorded at the Online Trading Expo

This tutorial was originally titled Secrets to Successful Short-Term Trading and was recorded at the Online Trading Expo This tutorial was originally titled "Secrets to Successful Short-Term Trading" and was recorded at the Online Trading Expo Day Trading Wizard Using High Probability Support and Resistance Levels with Tony

More information

Methods to Trade Forex Successfully for Quick Profits

Methods to Trade Forex Successfully for Quick Profits Methods to Trade Forex Successfully for Quick Profits This article is devoted to the techniques that are used to trade Forex on an intraday basis for quick profits. The aim is to make the trading a successful

More information

2014 S&P500 Bulletin Review

2014 S&P500 Bulletin Review 2015 I Am in Wall Street Ltd Registered in England No. 9440096 Director: Daniele Prandelli W: www.iaminwallstreet.com E: info@iaminwallstreet.com T: 0044 75 212 46 792 2014 S&P500 Bulletin Review +124

More information

Trendline Tips And Tricks

Trendline Tips And Tricks Tantalizing! Trendline Tips And Tricks How do you capture those medium- to longer-term moves when trying to enter and exit trades quickly? D by Sylvain Vervoort aydreaming about trading? Get in a trade

More information

FUTURES STRATEGY: Short-term CCI p. 10. ADJUSTING TO stock index futures shift p. 14. STRADDLES, STRANGLES, and volatility p. 16

FUTURES STRATEGY: Short-term CCI p. 10. ADJUSTING TO stock index futures shift p. 14. STRADDLES, STRANGLES, and volatility p. 16 May 2009 Volume 3, No. 5 FUTURES STRATEGY: Short-term CCI p. 10 ADJUSTING TO stock index futures shift p. 14 STRADDLES, STRANGLES, and volatility p. 16 FEAR AND LOATHING in the options market p. 20 TRADING

More information

The 5 Exit Heroes. Exiting Your Forex Trades For Maximum Profits

The 5 Exit Heroes. Exiting Your Forex Trades For Maximum Profits The 5 Exit Heroes Exiting Your Forex Trades For Maximum Profits IMPORTANT : As an added bonus for downloading this report, you also received additional free training videos. To access your bonuses, go

More information

The Logic Of Pivot Trading

The Logic Of Pivot Trading Stocks & Commodities V. 6: (46-50): The Logic Of Pivot Trading by Jim White This methodology takes advantage of the short-term trends in the market and applies a pivot trading technique to earn superior

More information

Chapter 18 STAYING WITH A TREND

Chapter 18 STAYING WITH A TREND Chapter 18 STAYING WITH A TREND While we are on the subject of the possibility of a day trader holding overnight, let s also see a way to stay with the trend allowing price volatility to dictate an exit

More information

FX Trading Guide: 4 Simple Ways to Spot a Trend JON MCFARLANE AND VERNON LEES

FX Trading Guide: 4 Simple Ways to Spot a Trend JON MCFARLANE AND VERNON LEES FX Trading Guide: 4 Simple Ways to Spot a Trend JON MCFARLANE AND VERNON LEES 0 BetOnMarkets 2011 Foreword We wrote this guide to give people wanting to trade Financial Fixed Odds some simple tools and

More information

CHART TRADING GUIDE 1

CHART TRADING GUIDE 1 CHART TRADING GUIDE 1 How to understand chart trading This guide is designed to teach you the basics of chart trading- the chart patterns that are covered in this booklet can be used for short and medium

More information

Technical Indicators Explained

Technical Indicators Explained Chapter I. Technical Indicators Explained In This Chapter The information in this chapter is provided to help you learn how to use the technical indicators that are available for charting on the AIQ TradingExpert

More information

Chapter 28 LIQUIDATION

Chapter 28 LIQUIDATION Chapter 28 LIQUIDATION Knowing when to liquidate a trade is at least as important as knowing when to enter a trade. Since most traders are on the right side of a trade going in, then the problem would

More information

Chapter 2.3. Technical Indicators

Chapter 2.3. Technical Indicators 1 Chapter 2.3 Technical Indicators 0 TECHNICAL ANALYSIS: TECHNICAL INDICATORS Charts always have a story to tell. However, sometimes those charts may be speaking a language you do not understand and you

More information

Trading With The Cup-With-Handle

Trading With The Cup-With-Handle Stocks & Commodities V13 (292-297): Trading with the -with- by Gregory Kuhn TRADING TECHNIQUES Trading With The -With- Here are some more nuances for trading stocks based on the charting pattern called

More information

Using Bollinger Bands. by John Bollinger

Using Bollinger Bands. by John Bollinger Article Text Copyright (c) Technical Analysis Inc. 1 Stocks & Commodities V. 10:2 (47-51): Using Bollinger Bands by John Bollinger Using Bollinger Bands by John Bollinger Trading bands, which are lines

More information

Leon Wilson Trading Success

Leon Wilson Trading Success Leon Wilson Trading Success A talk given by Mary de la Lande to the BullCharts User Group Meeting on 13 February 2008 1. Who is Leon Wilson? His Books and where to get them. 2. Book 1: The Business of

More information

Thinking Man s Trader

Thinking Man s Trader Thinking Man s Trader Advanced Trader s Package Trading is a three dimensional world and the Advanced Trader s Package covers all three. Dimension three: Market Dynamics, conditions and change of conditions

More information

Reading Gaps in Charts to Find Good Trades

Reading Gaps in Charts to Find Good Trades Reading Gaps in Charts to Find Good Trades One of the most rewarding and challenging things I have done in my 40-year trading career is teach elementary school students the basics of technical analysis

More information

Mark Minervini. Interview with Tim Bourquin

Mark Minervini. Interview with Tim Bourquin Mark Minervini Interview with Tim Bourquin Mark Minervini is one of America s most successful stock traders; a veteran on Wall Street with nearly 30 years of experience. He won the 1997 U.S. Investing

More information

Using ADX to Trade Breakouts, Pullbacks, and Reversal Patterns. By Puneet Jain CFTe

Using ADX to Trade Breakouts, Pullbacks, and Reversal Patterns. By Puneet Jain CFTe Using ADX to Trade Breakouts, Pullbacks, and Reversal Patterns By Puneet Jain CFTe (with DMI) ADX (Average Directional Index) is an indicator that measures trend strength shows trend direction. ADX tells

More information

Forex Trading Strategies: One way to trade the Non Farm Payroll report.

Forex Trading Strategies: One way to trade the Non Farm Payroll report. Forex Trading Strategies: One way to trade the Non Farm Payroll report. June 3 2011 1 Upshot Trade Signals disclaimer The information provided in this report is for educational purposes only. It is not

More information

Pattern Recognition Software Guide

Pattern Recognition Software Guide Pattern Recognition Software Guide 2010 Important Information This material is for general information only and is not intended to provide trading or investment advice. All analysis and resulting conclusions

More information

Exit Strategies & Stop Loss Techniques

Exit Strategies & Stop Loss Techniques Exit Strategies & Stop Loss Techniques Forex exit strategies are a very important part of Forex trading systems. In fact, it could be said, that out of all the components of a trading system, it is the

More information

TOMORROW'S TRADING TECHNOLOGY. 100% automated Fibonacci support and resistance levels that you can count on every single trading day in an instant.

TOMORROW'S TRADING TECHNOLOGY. 100% automated Fibonacci support and resistance levels that you can count on every single trading day in an instant. TOMORROW'S TRADING TECHNOLOGY 100% automated Fibonacci support and resistance levels that you can count on every single trading day in an instant. ProTrader Table of Contents 1. Areas A. Fibonacci Confluence

More information

EUR/USD, USD/CAD, GBP/USD

EUR/USD, USD/CAD, GBP/USD Learn how to trade EUR/USD, USD/CAD, GBP/USD or Any other major currency pair by mastering a system That combines top level mathematics with the Fundamental principles of human behavior - simplified In

More information

How To Use Multiple Time Frames For Setups. by Chris Vermeulen

How To Use Multiple Time Frames For Setups. by Chris Vermeulen by Chris Vermeulen A couple months ago I started providing more of my intraday charts in hopes to educate traders on current market conditions so they feel like they are "in the zone" for trading. It's

More information

Retracement Or Reversal. Kennsei Trading, Inc. Chief Trader Dinger dinger@kennseitrading.com www.hotstocksforincome.com

Retracement Or Reversal. Kennsei Trading, Inc. Chief Trader Dinger dinger@kennseitrading.com www.hotstocksforincome.com Retracement Or Reversal Kennsei Trading, Inc. Chief Trader Dinger dinger@kennseitrading.com www.hotstocksforincome.com Retracement Or Reversal Most of us have wondered, at some point, whether a decline

More information

IS SWING TRADING THE PERFECT TIMEFRAME?

IS SWING TRADING THE PERFECT TIMEFRAME? IS SWING TRADING THE PERFECT TIMEFRAME? Brian Shannon www.alphatrends.net Do you categorize yourself as a long term investor, a day trader or maybe something in between? If you are like many people, you

More information

The Ultimate Fibonacci Guide By Fawad Razaqzada, technical analyst at FOREX.com

The Ultimate Fibonacci Guide By Fawad Razaqzada, technical analyst at FOREX.com The Ultimate Fibonacci Guide By Fawad Razaqzada, technical analyst at FOREX.com Who is Fibonacci? Leonardo Bonacci also known as Leonardo Fibonacci was an Italian mathematician in the 12 th century. He

More information

Timing the Trade How to Buy Right before a Huge Price Advance

Timing the Trade How to Buy Right before a Huge Price Advance Timing the Trade How to Buy Right before a Huge Price Advance By now you should have read my first two ebooks and learned about the life cycle of a market, stock, or ETF, and discovered the best indicators

More information

More informed trading Technical Analysis: Trading Using Multiple Time-frames

More informed trading Technical Analysis: Trading Using Multiple Time-frames Technical Analysis: Trading Using Multiple Time-frames Intermediate Level Introduction 1 Stock markets worldwide function because, at any given time, some traders want to buy whilst others want to sell.

More information

THE CYCLE TRADING PATTERN MANUAL

THE CYCLE TRADING PATTERN MANUAL TIMING IS EVERYTHING And the use of time cycles can greatly improve the accuracy and success of your trading and/or system. THE CYCLE TRADING PATTERN MANUAL By Walter Bressert There is no magic oscillator

More information

How I Trade Profitably Every Single Month without Fail

How I Trade Profitably Every Single Month without Fail How I Trade Profitably Every Single Month without Fail First of all, let me take some time to introduce myself to you. I am Kelvin and I am a full time currency trader. I have a passion for trading and

More information

Need a clue to short-term market direction? The premium between the Standard & Poor's 500 futures

Need a clue to short-term market direction? The premium between the Standard & Poor's 500 futures Stocks & Commodities V. 8:12 (450-452): Clues To Market Direction With The S&P 500 Premium by Jean-Olivier Fraisse, CFA Clues To Market Direction With The S&P 500 Premium by Jean-Olivier Fraisse, CFA Need

More information

Forex Volatility Patterns

Forex Volatility Patterns Spotting Early Breakouts Forex Volatility Patterns BRUCE WALDMAN Want to catch 40 to 00 pips in each trade? Here s how you can find those entry and exit signals to make your forex trading a success. C

More information

Chapter 6 - Rahul Mohindar Oscillator System

Chapter 6 - Rahul Mohindar Oscillator System Chapter 6 - Rahul Mohindar Oscillator System The Rahul Mohindar Oscillator and its associated tools and indicators were developed by Mr. Rahul Mohindar of VIRATECH (viratechindia.com). In addition to being

More information

Chapter 30 1-2-3 S AND BOLLINGER BANDS

Chapter 30 1-2-3 S AND BOLLINGER BANDS Chapter 30 1-2-3 S AND BOLLINGER BANDS We ve mentioned previously that Bollinger Bands perform a very important function relative to ones ability to read price charts. Bollinger Bands offer a visual presentation

More information

Day Trading the Dow Jones, DJI

Day Trading the Dow Jones, DJI Day Trading the Dow Jones, DJI Enter a trade on a confirmation of a break of the 100EMA, which is when the price pulls back towards the 100MA and then continues in the direction of the breakout. Stay in

More information

I found a gorgeous swing on a 240-minute bar chart of the euro FX against the US dollar FX chart. Let's take a look at it:

I found a gorgeous swing on a 240-minute bar chart of the euro FX against the US dollar FX chart. Let's take a look at it: Tips for Traders 4/13/2009 10:38:00 AM The Right Way to Use Lines in Trading I have been working with lines as my main trading tool for more than 38 years now. Lines are simple, lines A trader e-mailed

More information

Chapter 8. Trading using multiple time-frames

Chapter 8. Trading using multiple time-frames Chapter 8 Trading using multiple time-frames TRADING USING MULTIPLE TIME- FRAMES Stock markets worldwide function because, at any given time, some traders want to buy whilst others want to sell. A trader

More information

Technical Indicators Tutorial - Forex Trading, Currency Forecast, FX Trading Signal, Forex Training Cour...

Technical Indicators Tutorial - Forex Trading, Currency Forecast, FX Trading Signal, Forex Training Cour... Page 1 Technical Indicators Tutorial Technical Analysis Articles Written by TradingEducation.com Technical Indicators Tutorial Price is the primary tool of technical analysis because it reflects every

More information

BROKER SERVICES AND PLATFORM

BROKER SERVICES AND PLATFORM BROKER SERVICES AND PLATFORM A broker is an individual who executes buy and sell orders and get commission in the form of SPREAD (I will talk about SPREAD in the subsequent lessons). You trade through

More information

In the Richard D. Wyckoff method on stock market science and techniques, the fourth step of his

In the Richard D. Wyckoff method on stock market science and techniques, the fourth step of his Wyckoff: Buying And Selling Tests by Craig F. Schroeder In the Richard D. Wyckoff method on stock market science and techniques, the fourth step of his approach is explained thus: Determine each stock's

More information

A Primer On Technical Analysis. Written by. Available at

A Primer On Technical Analysis. Written by. Available at A Primer On Technical Analysis Written by Available at Page 1 of 23 Overview Technical Analysis (Versus Fundamental Analysis) Technical analysis is a method of forecasting price movements by looking at

More information

I Really Trade. Trading Patterns for Stocks & Commodities. Introducing The False Break Buy and Sell Pattern

I Really Trade. Trading Patterns for Stocks & Commodities. Introducing The False Break Buy and Sell Pattern 2008 Trading Patterns for Stocks & Commodities It doesn t matter if you are a longterm investor, short swing trader or day trader, you are always looking for an advantageous spot to enter your position.

More information

WHY TECHNICAL ANALYSIS? WHAT IS THE NEED FOR IT?

WHY TECHNICAL ANALYSIS? WHAT IS THE NEED FOR IT? WHY TECHNICAL ANALYSIS? WHAT IS THE NEED FOR IT? The Architecture of Technical Trading Mohamad Shaker Karachi Stock Exchange Do you sit here while trading? Making money? losing money? What do you do when

More information

CHART PATTERNS. www.tff-onlinetrading.com

CHART PATTERNS. www.tff-onlinetrading.com CHART PATTERNS Technical analysis, as you have seen in our Trading Academy videos so far, is not just about charts. It does, however, rely heavily on them and often uses chart patterns to assist in making

More information

CONTROLLING. Your TRADES, MONEY& EMOTIONS. By Chris Vermeulen

CONTROLLING. Your TRADES, MONEY& EMOTIONS. By Chris Vermeulen CONTROLLING Your TRADES, MONEY& EMOTIONS By Chris Vermeulen INTRODUCTION In this condensed guide I have put together some key points which I think should be read a few times in order for these critical

More information

FOREX analysing made easy

FOREX analysing made easy FOREX analysing made easy UNDERSTANDING TECHNICAL ANALYSIS An educational tool by Blackwell Global Contents Technical Analysis 2 Line Chart 3 Bar Chart 4 Candlestick Chart 5 Support and Resistance 6 Fibonacci

More information

Simple & Consistent Fibonacci Method Prepared by: Simone Guy. {Free learning resource: NOT FOR RESALE}

Simple & Consistent Fibonacci Method Prepared by: Simone Guy. {Free learning resource: NOT FOR RESALE} Simple & Consistent Fibonacci Method Prepared by: Simone Guy {Free learning resource: NOT FOR RESALE} 3/13/2010 Overview This is a mechanical trading method that is based on Support and Resistance. The

More information

Presents. The Trading Information Revealed Here is not the Same as the WizardTrader.com Methods -- But Together They Pack a Powerful Punch

Presents. The Trading Information Revealed Here is not the Same as the WizardTrader.com Methods -- But Together They Pack a Powerful Punch Presents Killer Patterns Now You Can Have These Trading Gems -- Free! The Trading Information Revealed Here is not the Same as the WizardTrader.com Methods -- But Together They Pack a Powerful Punch 1

More information

How To Know When A Market Is In A Strong Trending Phase

How To Know When A Market Is In A Strong Trending Phase The 3 Rules of Successful Swing Trading Trade with the Wind at Your Back The Rule That Hits Home Runs & Be In the Right Place at the Right Time by Michele Mish Schneider, Director of Trading Research &

More information

How to find the big winners in the stock market.

How to find the big winners in the stock market. How to find the big winners in the stock market. Big Winners = Stocks in the positive right-hand tail of the distribution of returns Distribution of returns Normal vs. Fat Tails Theoretical distribution

More information

An Unconventional View of Trading Volume

An Unconventional View of Trading Volume An Unconventional View of Trading Volume With all the talk about the decline in trading volume (over 30% on a year- over- year basis for most of the third quarter) you would think that no one is playing

More information

The # 1 Indicator. For Stock Traders. by Eddie Z

The # 1 Indicator. For Stock Traders. by Eddie Z The # 1 Indicator For Stock Traders by Eddie Z Copyright, Legal Notice and Disclaimer: This publication is protected under the US Copyright Act of 1976 and all other applicable international, federal,

More information

Trading the GARTLEY 222

Trading the GARTLEY 222 Trading the GARTLEY 222 Sometimes old trading ideas are the best ideas if you can quantify them with modern analysis and testing procedures. Here, a "classic" chart pattern is defined mathematically and

More information

Newsletter Structure and Content

Newsletter Structure and Content YOUR QUESTIONS ANSWERED ABOUT SWING TRADING By Alan Farley Editor's Note: Many of you have asked about the best way to use The Daily Swing Trade, Alan's swing trading newsletter. To address these questions,

More information

As a professional floor trader at the Chicago Board of Figure 1 Trade, I have studied many trading

As a professional floor trader at the Chicago Board of Figure 1 Trade, I have studied many trading Article Text Copyright (c) Technical Analysis Inc. 1 Stocks & Commodities V. 4:5 (194-197): A mechanical trading system by William F. Eng A mechanical trading system by William F. Eng As a professional

More information

Pattern Recognition and Prediction in Equity Market

Pattern Recognition and Prediction in Equity Market Pattern Recognition and Prediction in Equity Market Lang Lang, Kai Wang 1. Introduction In finance, technical analysis is a security analysis discipline used for forecasting the direction of prices through

More information

JOURNAL THE BASIC GANN SWING PLAN FOR STOCKS QUESTIONS ROBERT KRAUSZ'S. Volume 1, Issue 4

JOURNAL THE BASIC GANN SWING PLAN FOR STOCKS QUESTIONS ROBERT KRAUSZ'S. Volume 1, Issue 4 ROBERT KRAUSZ'S JOURNAL Volume 1, Issue 4 THE BASIC GANN SWING PLAN FOR STOCKS T his issue of the Fibonacci Trader Journal will focus on trading stocks. Some traders, those who focus on just stocks, have

More information

Definitions to Basic Technical Analysis Terms. www.recognia.com

Definitions to Basic Technical Analysis Terms. www.recognia.com Definitions to Basic Technical Analysis Terms www.recognia.com A Alert An alert is a notification sent when a significant event occurs in one or more investments of importance to a trader. Recognia sends

More information

Swing Trade Warrior Chapter 4. Fundamentals & Technicals What You Need to Know! One is not more right than the other, but they both DO matter when swing trading, and can even matter when day trading (think

More information

Chapter 2.4. Trading using multiple time-frames

Chapter 2.4. Trading using multiple time-frames 1 Chapter 2.4 Trading using multiple time-frames 0 Contents TRADING USING MULTIPLE TIME- FRAMES Stock markets worldwide function because, at any given time, some traders want to buy whilst others want

More information

Technical Analysis SAmple InveSTIng plans 1

Technical Analysis SAmple InveSTIng plans 1 Technical Analysis Sample Investing Plans 1 Important Information All investing plans and rules are provided for informational purposes only, and should not be considered a recommendation of any security,

More information

Chapter 1 Introduction Disclaimer: Forex Involves risk. So if you lose money you can't blame us we told you trading involves risk.

Chapter 1 Introduction Disclaimer: Forex Involves risk. So if you lose money you can't blame us we told you trading involves risk. By Casey Stubbs -Winners Edge Trading.com Table of Contents Chapter 1. Introduction Chapter 2.. Trading Plan Chapter 3.. Money Management Chapter 4. Moving Average Strategy Chapter 5. Stochastic Strategy

More information

More informed trading Technical Analysis: Trends, Support and Resistance

More informed trading Technical Analysis: Trends, Support and Resistance Technical Analysis: Trends, Support and Resistance Beginner Level Introduction 1 Stocks prices are always moving up and down and fortunes rest on the ability to predict such movements. The trader s job

More information

The Secret Science of the Stock Market By Michael S. Jenkins

The Secret Science of the Stock Market By Michael S. Jenkins The Secret Science of the Stock Market By Michael S. Jenkins Michael S. Jenkins new and greatest book The Secret Science of the Stock Market is finally done. In this book Mr. Jenkins gives a start to finish

More information

Active Trend Trading System

Active Trend Trading System Active Trend Trading System Candle Light Trader: Dennis W. Wilborn A Trend Should Be Assumed to Continue in Effect Until Such Time as Its Reversal Has Been Definitely Signaled Edwards & Magee Disclaimer

More information

Forex Success Formula Presents Forex Success Mini Forex Success Formula Presents Forex Success Mini

Forex Success Formula Presents Forex Success Mini Forex Success Formula Presents Forex Success Mini Forex Success Formula Presents Forex Success Mini - 1 www.forexsuccessformula.com/forextradingblog Risk Disclosure Statement The contents of this e-book are for informational purposes only. No Part of

More information

Copyright 2010 by Kelvin Lee

Copyright 2010 by Kelvin Lee All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise,

More information

The Magic Momentum Method of Trading the Forex Market

The Magic Momentum Method of Trading the Forex Market The Magic Momentum Method of Trading the Forex Market WELCOME! Welcome to one of the easiest methods of trading the Forex market which you can use to trade most currencies, most time frames and which can

More information

Option Profit Basic Video & Ecourse

Option Profit Basic Video & Ecourse Option Profit Basic Video & Ecourse The following is a brief outline of the training program I have created for you What Will You Learn? You will be taught how to profit when stocks go up and how to "really"

More information

W.D. Gann's Techniques of Analysis and Trading

W.D. Gann's Techniques of Analysis and Trading A Summary of W.D. Gann's Techniques of Analysis and Trading Psychological Framework Master yourself Do not overtrade See if your trade is based on hope or logic and systems developed by you Trading strategies

More information

One of the primary challenges traders deal with is

One of the primary challenges traders deal with is TRADING Strategies Momentum trading: Using pre-market trading and range breakouts Focusing on days the market breaks out of the prior day s range and moves in the same direction as the pre-market trend

More information

I Day. article. In. you but. I just. Entry. Trend. I risk. 2.5% per. equity. a "runner" trading

I Day. article. In. you but. I just. Entry. Trend. I risk. 2.5% per. equity. a runner trading Emini Day Trading How I Day Trade for a Living I wish I had a simple answer for you but I don't. Trading is hard, very hard probably the hardest thing you' 'll ever try to do in your life and that's why

More information

Tips for Traders 7/21/2008 How To Avoid Getting Washed and Rinsed in the Markets

Tips for Traders 7/21/2008 How To Avoid Getting Washed and Rinsed in the Markets Tips for Traders 7/21/2008 How To Avoid Getting Washed and Rinsed in the Markets I have the honor and pleasure of mentoring a number of very talented traders-some who are full-time professional traders

More information

These Two Words Just Made Us 37% In 3 Months. "These Two Words. Just Made Us 37% In 3 Months"

These Two Words Just Made Us 37% In 3 Months. These Two Words. Just Made Us 37% In 3 Months These Two Words Just Made Us 37% In 3 Months "These Two Words Just Made Us 37% In 3 Months" Using these "two words" in your 401k, IRA or any other investment account can make you very wealthy... What are

More information

The information contained herein is derived from sources we believe to be reliable, but of which we have not independently verified. Forexyard.

The information contained herein is derived from sources we believe to be reliable, but of which we have not independently verified. Forexyard. STRATEGIES FOR FOREX MARKET PREDICTIONS IN 2011 By: Russel Glaser, Chief Market Analyst: FOREXYARD Date: February 2011 In this Issue: 1. Incorporating Long Term Charts for Market Predictions 2. What is

More information

How to Trade Intra-Day Gold and S&P500 with Low Risk Setups. by Chris Vermeulen

How to Trade Intra-Day Gold and S&P500 with Low Risk Setups. by Chris Vermeulen How to Trade Intra-Day Gold and S&P500 with Low Risk Setups by Chris Vermeulen Last week was an incredible week for trading the intraday charts. With rising volume and volatility prices began to move up

More information

The Shark Attack System

The Shark Attack System The Shark Attack System by Ashwani Gujral Reviewed and recommended by Rita Lasker & Green Forex Group Disclaimer Please be aware of the loss, risk, personal or otherwise consequences of the use and application

More information

How to Make an Income from Gold

How to Make an Income from Gold ASIA PACIFIC S PREEMINENT TRADING MAGAZINE TM www.tradersjournal.com VOLUME 4 ISSUE 1 How to Make an Income from Gold SG$9.80 / A$9.95 / HK$68 / RM$19.80 TRADING TOOLS: Candle Charting Basics Trading Sea

More information

THE LAW OF CHARTS WITH INFORMATION NOT SHOWN IN OUR PREVIOUS COURSE MANUALS

THE LAW OF CHARTS WITH INFORMATION NOT SHOWN IN OUR PREVIOUS COURSE MANUALS THE LAW OF CHARTS WITH INFORMATION NOT SHOWN IN OUR PREVIOUS COURSE MANUALS 1-2-3 HIGHS AND LOWS A typical 1-2-3 high is formed at the end of an uptrending market. Typically, prices will make a final high

More information

Equity Basics: Introduction

Equity Basics: Introduction Equity Basics: Introduction Over the last few decades, the average person's interest in the equity market has grown exponentially. This demand coupled with advances in trading technology has opened up

More information

Trading the Gartley 222

Trading the Gartley 222 Trading the Gartley 222 By Aaron Behle and Mark Conway 2003, Reprinted with permission of Active Trader magazine (www.activetradermag.com) Sometimes old trading ideas are the best ideas if you can quantify

More information

Chapter 22 A TRUE STORY. Recently, the following quote appeared in a financial publication: Try to find something that works and stay with it.

Chapter 22 A TRUE STORY. Recently, the following quote appeared in a financial publication: Try to find something that works and stay with it. Chapter 22 A TRUE STORY Recently, the following quote appeared in a financial publication: Try to find something that works and stay with it. Is this sound advice for trading in the markets? Although on

More information

International Academy of Exchange Trading. Lesson 5: A beginner s guide to technical analysis

International Academy of Exchange Trading. Lesson 5: A beginner s guide to technical analysis International Academy of Exchange Trading Lesson 5: A beginner s guide to technical analysis International Academy of Exchange Trading Contents Lesson 1: All you need is... Lesson 2: Forex lowdown Lesson

More information

The Best Trendline Methods of Alan Andrews and Five New Trendline Techniques. By Patrick Mikula

The Best Trendline Methods of Alan Andrews and Five New Trendline Techniques. By Patrick Mikula 1 The Best Trendline Methods of Alan Andrews and Five New Trendline Techniques By Patrick Mikula 2 Contents Introduction SECTION 1: The Best Trendline Methods of Alan Andrews Bar Charts and Pivots High

More information