Advanced Charting Techniques for High Probability Trading outlines Advanced Charting techniques that can be successfully applied to the various CSE techniques. The rules and management techniques of CSE remain the same. What changes is when to execute those rules and management techniques on a particular position based on these advanced charting techniques. Any technical charting is useless if we cannot master it. We must master the ability to interpret what the indicators are forecasting for us.
In this book, Advanced Charting indicators are reformulated with new definitions and a methodology of interpretation. These indicators are constantly being back‐tested and tweaked to track the changes in cycles relative to market trends. Attempting to apply default (standard) technical indicators and their definitions with Advanced Charting will complicate and hinder the ability to understand and use the method effectively. Technical charting is a subjective and complicated field, but with Advanced Charting, we apply logic and practical common sense to the analytical process of understanding cycles and trends through chart pattern recognition. Once you have mastered Advanced Charting, you can trade anything with a higher degree of accuracy.
The momentum phase of the movement or cycle of a stock is the most profitable and important phase in the life cycle of a stock. Being able to identify this phase is not critical when trading covered calls, LEAPS, or credit spreads; however, being able to identify this phase will greatly improve profits. Mastery of Advanced Charting eliminates position management of most trades once entered. This means that you have mastered the timing to enter, exit, and wait on the charts. You will be able to identify the four phases of a cycle: birth, momentum, exhaustion, and death.
Advanced Charting is simplified from most charting techniques so the learning curve is rapid. Traders can master Advanced Charting quickly. This book will help you master charting with amazing results. Advanced Charting Techniques for High Probability Returns will increase your understanding of cycle direction and bias, which will lead to:
- Higher percentage of new positions being exited on the delta effect, called out, or closed on the delta low bridge (DLB), or 10‐cent rule. This results in a lower percentage of new positions requiring management.
- Higher percentage of tethered slingshot (TSS) for income call sales resulting in profitable buybacks. This means a lower percentage of TSSs will require the use of a defensive technique, such as surrogate stock replacement (SSR).
- Higher buyback returns on TSSs due to knowing when to stay in a profitable TSS. This results in higher returns on positions that are being managed.
- Fewer positions that will have to be managed.
- Introduction to Advanced Charting
- Straight-Line Chart
- Direction of a Trend
- Moving Average Crossovers
- Bollinger Bands, PSAR, Channels, Zones, and FTL
- Putting It All Together: MAs and the BBs
- Lower Chart Indicators L1 through L4
- The Second Chart: Window 2—Chart 2
- Recap of Advanced Charting
- RS: Advanced Charting Relative Strength Indicator
- Momentum Trading and Trading the Moment
Advanced Charting Techniques for High Probability Trading: The Most Accurate And Predictive Charting Method Ever Created By Joseph Hooper, Aaron R. Zalewski, Edwin L. Watanab pdf