Candlestick and Pivot Point Trading Triggers +Website makes Pivot Point analysis relevant for today's market, with up-to-date data and new techniques that reflect the current trading environment. Tried-and-true tactics are modernized with new tools and approaches, and novel methodologies are introduced to help you make smarter trades while minimizing risk. Directional options strategies draw on analysis from Thinkorswim, TradeStation and Genesis Software, and are integrated with PPS Indicator and Persons Pivots. Quarterly pivots are introduced for long-term trading opportunities and option strategists, and leveraged and inverse-leveraged ETFs are brought into the detailed discussion on trading vehicles. The author's own proprietary setups have been updated to align with the new trading realities, and the new chapter on volume analysis covers the techniques used in his book Mastering the Stock Market. Combined with the tools and resources featured on the companion website, this book gives you the tools and techniques you need to boost your portfolio's performance.
Technical analysis offers more profit opportunities than ever before, but the tools of the trade have changed. This book brings you up to date with the latest, so you can start getting even more out of your trades. - Utilize leveraged and inverse-leveraged ETFs - Integrate directional options strategies - Apply new techniques for volume analysis - Implement quarterly pivots for longer-term opportunities
The 2006 publications of this book's first edition brought pivot point and candlestick charting into the limelight. The market has undergone massive changes in the past ten years, and many of the most effective techniques have been adjusted and integrated with new tools to become even more effective in today's market. This new second edition of Candlestick and Pivot Point Trading Triggers +Website brings clarity to the current market, and strength to your investment strategy.
Table of Contents
Acknowledgments xi
About the Author xiii
Introduction 1
Things Change 1
The Conundrum 2
History Should Repeat Itself 2
Delayed Reaction 3
Trading for a Living 3
The New Age Technician 4
Chapter 1 Trading Vehicles, Stock, ETFs, Futures, and Forex 5
Importance of a Rule-Based Approach 7
Start Trading as a Business 8
Education is the Key to Success 9
Traders Need to Ask More Questions 11
Risk Per Trade 14
Number One Trading Focus - Risk Management 14
Diversification is the Key to Success 15
Habitual Winners Follow Trading Plans 15
Investment Vehicles 19
FX - Forex 19
Stock Trading Opportunities 20
Spread Trading Tips 23
Become the Next Warren Buffett 27
Long-Term Investing or Short-Term Trading 28
Exchange-Traded Funds 28
Personalized Mini-Mutual Fund 29
Hot Sectors, Hot Stocks 30
Currency ETFs 31
Commodity ETFs 31
The Hot Stock 32
Futures Markets: Leverage System 35
Futures Contracts 36
Tandem Trading Techniques 39
Stocks Influenced by Commodities 42
Forex, the Currency Cash Machine 42
Margin and Leverage 43
Long and Short 44
Benefits of Futures and Forex 44
Insider Trading Information 49
Summary 53
Study the “Macro” Issues 53
Chapter 2 Determining Market Condition 57
Bullish, Bearish, or Neutral 57
What Defines Momentum? 59
What Makes a Successful Trader? 59
Where’s the Catch? 61
Find the Clues! 62
Be on Guard for Changes 65
Forex Markets Fall Prey to Reversals 67
Moving Averages Help! 68
Filling in the Gap 70
Chapter 3 How to Read Oscillators to Spot Overbought or Oversold Conditions 75
Stochastics 76
Rules to Trade By 77
Stochastics Confirms the Turn 81
Tips and Tricks to Help 82
Stochastics Patterns 82
Rules to Trade By 84
MACD 86
Summary 93
Chapter 4 Momentum Changes: How to Spot a Trend’s Strength or Weakness 95
Volume as a Trend Indicator 96
Overbought Market Condition - A Dead Giveaway 102
Blow-Off Tops on Volume Spikes 103
Volatility ETN ($XVV) versus SPY or E-mini S&P Futures 105
Actionable Trade Concepts 106
Chapter 5 Pivot Points: Determine Key Price Support and Resistance Areas and the Importance of Confluence 111
Support and Resistance in Disguise 112
Mathematical Calculations 114
The Leading Indicator 114
Possible Outcomes When Prices are Near Pivot Area 118
Determine the Range 121
Multiple Time Frame Analysis 121
Filter Out Information Overload 124
Predicting Highs and Lows Using the Calculations 124
Filtering the Numbers 124
Lining Up the Numbers 126
Pivots Combined with Candles 128
The Importance of Confluence 137
Time and Price 137
Volatility is Good - To a Degree 139
Confluences Work at Tops 141
Option Covered Call Strategy 147
Summary 152
Chapter 6 Pivot Point Moving Average System 153
Determining Trend Direction 154
Beat the Street 154
The Simple Moving Average 154
Trading Trigger Strategy 165
Conditional Optimized Moving Average System 166
PPS Indicator 167
Trading Tips 169
How Do I Start? 175
Chapter 7 Candle Charts and Top Reversal Patterns 183
Candlestick Charting 183
Candle Formations 186
The Doji 187
Other Important Candle Patterns 189
Candlestick Trading Strategies 202
Chapter 8 Set-ups and Triggers: Combining Candles and Pivots 213
High Close Doji 216
Characteristics 217
Triggers on Futures Markets 227
Low Close Doji 231
Characteristics 232
Trading Rules 232
Triggers on Futures Markets 239
Triggers on Stocks 241
The Best Predictive Indicator 242
Summary 244
Chapter 9 Risk and Trade Management: Setting Stops and Profit Targets 247
Placing Stop Orders 249
General Uses of Stop Orders 249
Rising SAR calculation 257
Falling SAR Calculation 257
The Bottom Line 263
Chapter 10 Projecting Entry and Exit Points: Learn to Scale Out 265
Steps to Success 268
Last Conditional Change 270
Do Something Great 273
Scale and Trail 274
Integrate Pivot Points to Help Time Your Entries and Exits 275
Buy Support, Sell Resistance 277
Chapter 11 The Sample Analysis: The Proof is in the Back-Testing 281
Seasonal Stock System 285
History Lessons 286
Which Strategy to Select? 288
What About the MACD? 289
What is the Best Day Trading Confirmation Trigger to Program? 296
Show Me the Proof 298
Money Management is the Key to Success 304
What and When is the Best Time to Trade? 305
Chapter 12 Confidence to Pull the Trigger Comes from Within 313
Wait for the Trade Signals 316
The Right Frame of Mind 320
Track and Chart Your Trades 320
Changes Since the 1st Edition 322
Change Your Brain 323
Simulated Trading 324
Live by the Rules 326
Index 327
