Edition 616 - April 1, 2016
Law of Charts with Commentary
by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Ledges
This week we are looking at a ledge. Prices have made a 1-2-3 low, followed by a Ross Hook. The hook is also the high point of a ledge formation.
A breakout of the #2 point of a 1-2-3 low defines a trend. A breakout of a Ross Hook establishes a trend. Ledges, by definition, always occur in a trending market. So if a breakout comes at the top of the ledge, we can assume the trend will continue.
Notice also that there was a potential Traders Trick Entry based on the high of the day following the point of the hook. However, because of the gap opening, the entry was not taken.
© by Joe Ross. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
Pressured Trading
by Master Trader Joe Ross
Author, Trader, Trading Mentor, and Founder of Trading Educators, Inc.
Many traders these days feel pressured to perform. They don't believe that they have the luxury of taking time to patiently learn the trading profession. Instead, they feel they must do things quickly. Novice traders, for example, hold themselves up to the impossible ideal of thinking that just overnight they can develop astute intuition to read the markets. They approach trading like recreational gambling. They believe that trading is simply a matter of placing a bet, throwing the dice, and seeing if they can win. Approaching trading in this manner, however, will usually produce the same results as recreational gambling; the recreational trader loses to the house, which in this instance, are the professional traders. If the desire is to trade like a winner, it is important to take things slowly. Take things a step at a time, and approach trading methodically.
Trading methodically means making clearly defined trading plans. This process takes time. Rather than think of a trading plan on the spur of the moment, it is useful to carefully write down a trading plan. Study the markets and identify trades that are likely to increase in price (if going long). Write down the reasons you think the price will increase, along with factors that may thwart your plan. What adverse events may influence the price? You could try to do all this thinking in your head, but the human mind has limits. It can process only a limited amount of information. If you write it down to see it in black-and-white, you will transform the abstract into specific ideas and plans. When you make things concrete, you will find it relieves stress and frees up creative psychological energy. When you write things down, you can examine your plan thoughtfully and see the potential flaws with a third eye, objective perspective. It may take a little time to write it all down, but it is worthwhile.
Writing down a trading plan and sticking to it is the winning trader's secret weapon. If you create detailed trading plans and manage risk, you will increase your chances of success. Don't think you need to trade by the seat of your pants. Take things slowly. Map out your trading plan, and follow it. You will trade more calmly, creatively, and profitably.
© by Joe Ross. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
Trading Idea
by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook
Lean Hog "Butterfly" is this week's topic of discussion.
© by Andy Jordan. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
Visit Andy's Blog for his latest post
by Master Trader Andy Jordan
Educator for Spreads, Options, Swing/Day Trading, and Editor of Traders Notebook
Andy is starting a series of articles in which he will help you enhance your trading.
© by Andy Jordan. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
Trend Following Is Not Yet Dead - Part II
by Master Trader Marco Mayer
Educator for Forex and Futures, Systematic Trader, and Creator of Ambush Trading Method
In this video, Marco gives you more details on his findings on traditional trend following. He goes through a very basic strategy with you, the markets used for the backtest, and the detailed results. This is Part 2 of a 2-Part series. May we suggest you watch the Part I video before viewing Part 2.
© by Marco Mayer. Re-transmission or reproduction of any part of this material is strictly prohibited without the prior written consent of Trading Educators, Inc.
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Note: Unless otherwise noted, all charts used in Chart Scan commentary were created
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© by Trading Educators, Inc. Re-transmission or reproduction of any part of this material is strictly prohibited without prior written consent.
