Monday, 15 December 2014

The Best of All Trading Places is a Trending Market

It should be the easiest place to trade in a trending market but most people find it very difficult to follow a trend.

Definition of Trending Market
1. It stays out of the alligator's mouth.
2. Its pullbacks are less than its thrusts
3. It will contain more green candles in an up trend and more red candles in a down trend.

What is a Trend?
Price on the Correct side of Alligator
Up Trend = Price Above All three Lines
Down Trend = Price Below All Three Lines.

Why the Purple:
We want to trade in the direction of the M5 but we also want to trade when the M5 turns around. So on M1 we keep our trades at least above the Red Line of M5. For that we have the Purple plotted onto m1.

Trading in a Trend : What Trades to Take in a Trending Market

Only those in the direction of the trend.

1. With the Elliott Wave
We use eWave (1 second Elliott Wave Indicator) or AIMS Wave (10 Seconds Elliott Wave Indicator)

2. Without the Elliott Wave
It is not necessary to trade with Elliott Wave, since Elliott Wave is made of Impulse and Corrective waves. When Price is going away from Alligator and its mouth is open its an impulse wave. When price starts coming back to alligator's mouth that is a corrective wave. So Trade away from Alligator's mouth and in most cases you'll end up trading either Wave 1, 3 or 5. (all impulse waves.) Impulse waves are the ones that move the market. or rather when the market really change price in a sequence it is called an impulse wave.

Problems of a Trending Market
1. How to handle the Pullbacks (Grants Favourite)
2. Must make an executive decision of whether or not you are committed to this trend.

Strong Longs or Strong Shorts: If you are committed to the trend, and you have confidence in your position you have more staying power.
Weak Longs and Weak Shorts: If you don't have the ability to be committed to the trend don't have confidence in your position, you have less staying power.

Important Question:
Where to put your Stops in a Trend?

> The Confident Well Financed Trader, has the confidence to hold on to winning trades:

Where you put your stops depends upon whether you are strong or weak long/short. If you have confidence in your position, you have all the grounded assessments for staying in the trend, then it would be foolish not to follow the trend. A little bit of intuition plays its part as well but that comes with experience and "quality chart time".

Remember the Holy Grail is
"Want What the Market Wants"

> The Scared, Unsure, Afraid Trader (we all get there one time or another): 

The most valuable commodity you will ever deal with in your life is your perspective.
You want to watch your perspective closer than any other market or any other commodity in the world. If you find yourself in unsure afraid place you may want to just exit the market ,get out and come back when you're feeling better.

Remember to Ride the Alligator As long as it allows you.

Stay in the Now | Opportunity is NOW|HERE

Simplify Simplify Simplify - Thoreau

"Want What the Market Wants, with an Attitude of Gratitude"

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When is it too late or too early to buy a pullback? 

In order to answer this question first ….  Let’s quickly do some repetition. Let’s quickly do some repetition.  Let’s throw in some trading ...