Description
Book SynopsisA market master details his proven and profitable approach to trading High Probability Trading Strategies teaches traders step by step a unique and practical approach to analyzing market behavior, identifying profitable trade setups, and executing and managing trades from entry to exit in a way that both preserves and grows one's capital.
Trade Review'...teaches in a practical step-by-step manner...skilfully outlines every aspect of a practical trading plan .' (Traders, November 2010).
Table of ContentsForeword ix
Preface xi
PART ONE High Probability Trading Strategies for Any Market and Any Time Frame 1
CHAPTER 1 High Probability Trade Strategies for Any Market and Any Time Frame 3
Any Market, Any Time Frame 4
Conditions with a High Probability Outcome 4
Leading and Lagging Indicators 5
What You Will Learn in This Book and CD 6
Let’s Get Started 8
CHAPTER 2 Multiple Time Frame Momentum Strategy 9
What Is Momentum? 11
Multiple Time Frame Momentum Strategies 12
The Basic Dual Time Frame Momentum Strategy 12
Momentum Reversals 14
Most Price Indicators Represent Rate-of-Change 15
Momentum and Price Trends Often Diverge 16
How Dual Time Frame Momentum Strategies Work 19
Which Indicators to Use for Multiple Time Frame Momentum Strategies 31
What Are the Best Indicator Settings to Use? 36
Dual Time Frame Momentum Strategy Rules 43
Dual Time Frame Momentum Strategy Trade Filter 46
CHAPTER 3 Practical Pattern Recognition for Trends and Corrections 49
Why Is It Important to Identify a Trend or Correction? 50
Simple Pattern Recognition Based On Elliott Wave 52
Trend or Correction: The Overlap Guideline 52
ABC and Away We Go 58
Complex Corrections 64
Overlap Is the Key to Identify a Correction 66
Trends and Five-Wave Patterns 67
Greater in Time and Price 75
Fifth Waves Are the Key 77
Momentum and Pattern Position 79
Momentum and Pattern Not Enough 82
CHAPTER 4 Beyond Fib Retracements 83
Internal Retracements and Corrections 84
Alternate Price Projections Qualify Internal Retracements 89
More Alternate Price Projections 92
External Retracements Help Identify the Final Section of a Trend or Correction 96
Pattern Price Targets 99
Price, Pattern, and Momentum 106
No Excuse 108
CHAPTER 5 Beyond Traditional Cycles 111
Time Retracements and Corrections 112
Alternate Time Projections Narrow the Time Retracement Range 114
More Time Factors 117
The Time Target Zone 118
Time Bands 128
More Time Factors 135
Conclusion 137
CHAPTER 6 Entry Strategies and Position Size 139
Entry Strategy 1: Trailing One-Bar Entry and Stop 140
Entry Strategy 2: Swing Entry and Stop 150
Position Size 158
Conclusion 162
CHAPTER 7 Exit Strategies and Trade Management 163
Multiple-Unit Trading 164
Risk/Reward Ratios 165
Exit Strategies 166
Trade Management 168
Trade Only the High Probability, Optimum Setups 197
PART TWO Trading the Plan 199
CHAPTER 8 Real Traders, Real Time 201
Adam Sowinski (Slorzewo, Poland) 202
Jagir Singh (London, United Kingdom) 206
Cees Van Hasselt (Breda, The Netherlands) 214
Kerry Szymanski (Tucson, Arizona) 218
Derrik Hobbs (Warsaw, Indiana) 222
Carolyn Boroden (Scottsdale, Arizona) 227
Jaime Johnson (Encinitas, California, and Bogata, Columbia) 231
Chapter Summary 234
CHAPTER 9 The Business of Trading and Other Matters 237
Routines and Trading Records 237
Why Traders Win or Lose 239
Technology, Trading Time Frames, Markets to Trade, and Leverage 242
Trade for Points, Not for Ticks 244
You Can’t Buy Success 244
You CAN Be a Successful Trader 245
More Bar-by-Bar Entry to Exit Trade Examples 247
Glossary 249
Bibliography 261
About the Author 263
Index 265
