AbleTrend: Identifying and Analyzing Market Trends for Trading Success

In AbleTrend, Dr. John Wang discloses for the first time, the fundamental principles behind his bestselling and award-winning trading system, AbleTrend signals. Sophisticated in scope, yet written in a way that any trader can understand, this book skillfully presents the theory behind this award-winning system. This reliable resource presents the logic of a proven system that reveals the direction of a trend at its early stage in all markets-stocks, commodities, foreign currencies, ETFs, e-Minis, and mutual funds. It also identifies objective, automatic buy/sell/stop signals, helping you manage risk, make rational trading decisions, and eliminate the guesswork.

Introduction:

Natural law is the guiding principle behind everything we see, even though we may not be aware of it. For example, gravity has always existed from the earliest creation of the world; but it seemed people were not aware of its existence until one day when Newton’s “Universal Law of Gravitation” was published. Similarly, the market trend has always existed; but I could not identify it—or take advantage of it—until one day in 1994 when I discovered a simple way—the “AbleTrend” way—to observe the trend. Tens of thousands of AbleTrend users have helped us at AbleSys to grow over the last 15 years. We owe them a great deal because of their persistent support through all that time. I want to dedicate this book and issue a special “thank you” to every AbleSys client who has practiced our trend-following methods, and helped validate the trading system that can be applied to any market, any time chart, and anywhere in the world.

Most AbleTrend users are familiar with the way the software presents its trend findings on price charts in the form of blue bars, red bars, blue dots, red dots, and so forth. Here, in this book, I want to share with them more about the principles and philosophy underlying AbleTrend so that users may feel and get inside its soul and life. But the purpose for this book goes beyond that. I believe that every trader—whether an AbleTrend user or not—can develop a deeper comprehension of how to trade the markets by understanding the universal principles that were used to develop the AbleTrend software. My intention in writing this book is to introduce these individuals to new concepts of trend following that they can use in their trading and benefit from for years to come.

AbleTrend users in more than 60 countries and regions, trading different financial markets—some of which I am not even familiar with!—have put the concepts of this book to a practical test. This book was written in response to their wish that the concepts and philosophy behind our software be placed within the reach of all who are interested. This book includes seven chapters and two appendixes.

Chapter 1 is about the birth of AbleTrend. Is the market completely chaotic or is there a hidden order? How did I discover AbleTrend with scientific methods?  Chapter 2 is the most important chapter, where the foundation of this book is laid out. There we introduce new concepts about the trend: What is the scientific definition of a trend? How do we pinpoint the very beginning and ending point of a trend?How do we define a market’s own protective stops? With an immense number of charts, we explain step by step our points of view of support and resistance. And we provide a few real examples (or homework) to explain trends, stops, entry points, and so forth.

Chapter 3 discusses the four elements on which you build success in trading. Chapter 4 presents essential trading philosophy in terms of trend-following methods, especially drawing on the wisdom of the Tao. Chapter 5 covers issues of applying AbleTrend to trading, based on our concepts of trends. This chapter lays out from theory to application specifically how to trade the markets.

Chapter 6 presents 13 examples of trend analysis, with charts, to show how the trend-following method works in some common markets. Chapter 7 introduces the design concepts behind some special trading tools provided by the trading software, along with their applications. Appendix A presents 10 interviews with AbleTrend users who share their points of view, experiences, and trading methods. Appendix B provides a quick reference guide for Simplified Trading Method (STM).

Contents:

• The Search for a Universal Mar
• ket Law: The Rise of AbleTrend
• Advances in Market Trend Analysis
• Four Elements of Trading Success
• Essential Philosophy of Trend Trading
• The Applications
• Examples of Trend Analysis
• Advanced AbleTrend Tools

AbleTrend: Identifying and Analyzing Market Trends for Trading Success By John Wang, Grace Wang pdf