TREND TRADING SET-UPS The market offers trading opportunities no matter what the general market trend may be. But in order to capture them, you need to have a firm understanding of trade set-ups that have the highest probability of success. Professional trader and money manager L. A. Little is an expert in this area, and now, with Trend Trading Set-Ups: Entering and Exiting Trends for Maximum Profit, he shows you what it takes to make it using this proven approach. Divided into two comprehensive parts, this reliable resource offers valuable insights on various issues surrounding trade set-ups--including when a particular set-up has the highest probability for potential greatness--and shows you how to recognize and pursue these opportunities with regularity. In all cases, the set-ups examined consider price, volume, and time across various time frames and for instruments that are related. Along the way, it skillfully lays the groundwork needed for this endeavor and moves on to cover other essential topics such as developing a workable trading plan, becoming familiar with range trade set-ups as well as retrace and breakout trade set-ups, and learning how to successfully identify and trade them. Engaging and informative, Trend Trading Set-Ups skillfully details a process for understanding how to enter and exit trends for the best possible trading results.
Inhaltsverzeichnis
Foreword ix
Acknowledgments xi
Introduction 1
PART I 7
CHAPTER 1 Identifying and Qualifying Trend Probabilities 9
Trend Determination 10
Qualified Trend Failure Probabilities 13
Qualified Trade Failure Probabilities 31
Summary 37
CHAPTER 2 Anchor Zones: The Key to Timing Trades 41
Anchor Bars and Zones 42
Reconsidering Trade Failures 46
Summary 54
CHAPTER 3 Broader Influences Affecting Stocks 55
Sector Congruence 59
Virtual Industry Groups-Future Direction 72
General Market Congruence 74
Summary 81
PART II 85
CHAPTER 4 Formulating a Workable Trading Plan 89
Trend Direction and Strength 90
Time Frames 94
Entry and Exit Timing 95
Trading Size, Scale Trading, Trade Success Probabilities, and Reward-to-Risk Ratio 100
Evaluating and Acting Upon the Plan 104
Summary 105
CHAPTER 5 The Data behind Trend Trade Set-Ups 107
The Only Two Types of Trade Set-Ups 108
Trading Breakouts and Retraces 111
Breakouts versus Retrace Trade Probabilities 113
Probabilities for Trade Set-Up Scenarios 122
Summary 133
CHAPTER 6 Sideways Range Trades 135
Trade Set-Up Conditions and Categorizations 136
Trading Sideways Trends 137
Summary 155
CHAPTER 7 Breakout and Retrace Trade Set-Ups 157
Retrace Trade Set-Ups 158
Breakout Trade Set-Ups 186
Considering Other Trade Set-Ups 199
Trade Set-Up Rationale and Thoughts 201
Summary 205
Conclusion: Unleashing Trade Potential 207
Appendix: Data Tables 209
About the Author 241
Index 243
