Trading Price Action Trading Ranges

Technical Analysis of Price Charts Bar by Bar for the Serious Trader
Revised Auflage
ISBN: 978-1-118-06667-6
Verlag: Turner Publishing Company

Buch, Englisch, 624 Seiten, Format (B × H): 200 mm x 251 mm, Gewicht: 1080 g

Reihe: Wiley Trading Series

The introduction to this book will be short and related only to this volume. The market is either trending or in a trading range and it is often transitioning from one to the other. When the market is transitioning from a trading range into a trend, it is breaking out. Since trends were just discussed in the first book, this second book begins with how trading ranges turn into trends, which are now familiar to the reader. It explains why breakouts form and why they end, which is always at some kind of support or resistance area. The market gets drawn quickly to these areas and because of this pull, I refer to them as magnets. As the breakout is unfolding, traders can use several mathematical techniques to measure where the trend will likely end and then begin to form a trading range, and these measured moves are discussed in detail. Once the market reaches a magnet, it then pauses and pulls back, and usually then resumes. Pullbacks are reliable setups and the book describes them and how to trade them in detail. If a pullback grows so large that it is uncertain if the trend will resume or reverse, it has become a trading range. Most markets are in trading ranges most of the time and therefore most trades that traders make are within trading ranges. Understanding them and how to trade them is critical to anyone trying to make a living as a trader. Traders need to know how to place orders to get into and out of trades and it is useful to know how to scale into and out of positions. Also, mathematics is the basis for all trading. Every trader asks himself, "Will I make money if I take this trade?" This means that the traders is making a statistical analysis of what he sees based on risk, reward, and probability, and understanding this math makes trading less stressful and more profitable.

Autoren/Hrsg.

Brooks, Al

Fachgebiete

• Wirtschaftswissenschaften Volkswirtschaftslehre Internationale Wirtschaft Internationale Finanzmärkte
• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Internationale Finanzmärkte
• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Börse, Rohstoffe

Inhaltsverzeichnis

Acknowledgments

Introduction

List of Terms Used in this Book

Part I: Breakouts: Transitioning into a New Trend

Chapter 1: Example of How to Trade a Breakout

Chapter 2: Signs of Strength in a Breakout

Chapter 3: Initial Breakout

Chapter 4: Breakout Entries in Existing Strong Trends

Chapter 5: Failed Breakouts, Breakout Pullbacks, and Breakout Tests

Chapter 6: Gaps

Part II: Magnets: Support and Resistance

Chapter 7: Measured Moves Based on the Size of the First Leg (the Spike)

Chapter 8: Measured Moves Based on Gaps and Trading Ranges

Chapter 9: Reversals Often End at Signal Bars from Prior Failed Reversals

Chapter 10: Other Magnets

Part III: Pullbacks: Trends Converting to Trading Ranges

Chapter 11: First Pullback Sequence: Bar, Minor Trend Line, Moving Average, Moving Average Gap, Major Trend Line

Chapter 12: Double Top Bear Flags and Double Bottom Bull Flags

Chapter 13: Twenty Gap Bars

Chapter 14: First Moving Average Gap Bars

Chapter 15: Key Inflection Times of the Day that Set Up Breakouts and Reversals

Chapter 16: Counting the Legs of Trends and Trading Ranges

Chapter 17: Bar Counting: High and Low 1, 2, 3, and 4 Patterns and ABC Corrections

Chapter 18: Wedge and Other Three Push Pullbacks

Chapter 19: Dueling Lines: Wedge Pullback to the Trend Line

Chapter 20: "Reversal" Patterns: Double Tops and Bottoms and Head and Shoulders Tops and Bottoms

Part IV: Trading Ranges

Chapter 21: Example of How to Trade a Trading Range

Chapter 22: Tight Trading Ranges

Chapter 23: Triangles

Part V: Orders and Trade Management

Chapter 24: Scalping, Swinging, Trading, and Investing

Chapter 25: Mathematics of Trading: Should I Take This Trade? Will I Make Money if I Take This Trade?

Chapter 26: Need Two Reasons to Take a Trade

Chapter 27: Entering on Stops

Chapter 28: Entering on Limits

Chapter 29: Protective and Trailing Stops

Chapter 30: Profit Taking and Profit Targets

Chapter 31: Scaling into and out of a Trade

Chapter 32: Getting Trapped In or Out of a Trade

About the Author

About the Website

Index

Über Autor(innen)

Brooks, Al
Al Brooks is a technical analysis contributor for Futures magazine and an independent day trader. His approach to reading price charts was developed over two decades in which he changed careers from ophthalmology to trading. Brooks graduated from The University of Chicago Pritzker School of Medicine in 1978 and received a BS in mathematics with honors from Trinity College in 1974. His website, brookspriceaction.com, outlines his trading approach and views as well as hosts a subscription-based daily trading chat room in which Brooks talks with other traders about the market.

Al Brooks is a technical analysis contributor for Futures magazine and an independent day trader. His approach to reading price charts was developed over two decades in which he changed careers from ophthalmology to trading. Brooks graduated from The University of Chicago Pritzker School of Medicine in 1978 and received a BS in mathematics with honors from Trinity College in 1974. His website, brookspriceaction.com, outlines his trading approach and views as well as hosts a subscription-based daily trading chat room in which Brooks talks with other traders about the market.