Profitable trading is a combination of three distinct and unrelated factors, the least important of which is a good market timing indicator or system. Two more critical elements are money management skills and selfdiscipline. WIth the exception of one chapter in this book devoted to general money management principles, the discussion of these two topics will be incidental to this book’s primary focus, which is market timing techniques. My goal in writing New Market Timing Techniques is to provide an introduction to a series of new and exciting market timing approaches, as well as fresh and original perspectives for a trader to view and operate within the markets.
In the process, I hope to dispel any misconceptions or misperceptions regarding many widely used market timing methods. In conclusion, I strongly suggest that before you implement any of the indicators presented in this book, you conduct an inventory of your money management methodology, as well as develop a thorough psychological trading profile of yourself. To ignore either would be akin to a carpenter building a house with tools but no plans. Certainly, an accomplished journeyman will be able to construct a respectable structure by using only equipment; however, by following a set of architectural plans and drawings, the task is simplified inunensely and the potential for success is enhanced considerably as well.
Once again, I emphasize the fact that successful trading requires a similar combination of activities and abilities: a strict adherence to a trading philosophy and methodology, an appreciation of sound money management principles, an awareness of your trading emotions, and a recognition of your trading limitations. Note that throughout New Market Timing Techniques, unless stated otherwise, for purposes of discussion and illustration, I will generally refer to daily charts and data, when in fact any other time period can be easily substituted as well. My reasons for selecting daily information are threefold:
- It is the most readily available data and has been the most widely followed time period for decades.
- It not only relieves the trader of the necessity of constantly following the market on an intra day basis, but it also reduces the risk of price revisions from the various exchanges, such as those that historically have plagued intraday databases.
- It increases the chance that when market indications are generated based on this information, the trader can be confident the trades will in actuality be executed.
- TD Sequential
- TD Combo
- TD lines
- TD Retracements
- Price Breakouts
- TD Moving Averages
- Market Timing and Market Systems Development
- TD Triangulation and TD Propulsion
- Additional Indicators and Ideas for System Development
- Methods to Calculate Price Objectives
- Market Myths and Misconceptions
- Money Management
New Market Timing Techniques: Innovative Studies in Market Rhythm & Price Exhaustion By Thomas R. DeMark PDF