Trading Price Action Trends: Technical Analysis of Price Charts Bar by Bar for the Serious Trader
Price Action Trends Bar by Bar describes in detail what individual bars and combinations of bars can tell a trader about what institutions are doing. This is critical because the key to making money in trading is to piggyback institutions and you cannot do that unless you understand what the charts are telling you about their behavior. This book will allow you to see what type of trend is unfolding, so can use techniques that are specific to that type of trend to place the right trades.
The most important message that I can deliver is to focus on the absolute best trades, avoid the absolute worst setups, use a profit objective (reward) that is at least as large as your protective stop (risk), and work on increasing the number of shares that you are trading. I freely recognize that every one of my reasons behind each setup is just my opinion, and my reasoning about why a trade works might be completely wrong. However, that is irrelevant.
What is important is that reading price action is a very effective way to trade, and I have thought a lot about why certain things happen the way they do. I am comfortable with my explanations and they give me confidence when I place a trade; however, they are irrelevant to my placing trades, so it is not important to me that they are right.
Just as I can reverse my opinion about the direction of the market in an instant, I can also reverse my opinion about why a particular pattern works if I come across a reason that is more logical or if I discover a flaw in my logic. I am providing the opinions because they appear to make sense, they might help readers become more comfortable trading certain setups, and they might be intellectually stimulating, but they are not needed for any price action trades.
- The Spectrum of Price Action: Extreme Trends to Extreme Trading Ranges
- Trend Bars, Doji Bars, and Climaxes
- Breakouts, Trading Ranges, Tests, and Reversals
- Bar Basics: Signal Bars, Entry Bars, Setups, and Candle Patterns
- Signal Bars: Reversal Bars
- Signal Bars: Other Types
- Outside Bars
- The Importance of the Close of the Bar
- Exchange-Traded Funds and Inverse Charts
- Second Entries
- Late and Missed Entries
- Pattern Evolution
- Trend Lines
- Trend Channel Lines
- Micro Channels
- Horizontal Lines: Swing Points and Other Key Price Levels
- Example of How to Trade a Trend
- Signs of Strength in a Trend
- Two Legs
- Spike and Channel Trend
- Trending Trading Range Days
- Trend from the Open and Small Pullback Trends
- Reversal Day
- Trend Resumption Day
- Stairs: Broad Channel Trend