STREET SMART 2

Three Little Indians

A trading pattern used on tick charts.

Directional Bias

A trader's opinion about market direction that can hinder trading success.

Right-Hand Side of the Chart

Focus on current market patterns rather than predictions.

Listening to the Market

Developing awareness of market action and price behavior.

Mechanical System

A trading strategy that is systematic and can be exploited by large funds.

Initial Stop Loss Orders

Essential protective measures to manage risk in trading.

Swing Trading Concepts

Organized around tests, retracements, and climax reversals.

Test Setups

Include patterns like Turtle Soup and Momentum Pinball.

Retracement Patterns

Trading strategies that involve entering on price corrections.

Climax Reversals

Trading strategies based on extreme market conditions.

Richard D

A trader who emphasized anticipation in speculation.

Long Pull Trading

Holding trades based on fundamental value until revaluation occurs.

Active Market Trading

Making many trades and relying on stop loss orders for protection.

Market Behavior

The unpredictable nature of price movements after a trade is made.

Headstart in the Right Direction

Aiming to enter trades with a favorable risk-reward setup.

Trailing Stops

A method to lock in profits as the market moves favorably.

Emotional Extremes

Identifying market conditions driven by trader psychology.

Higher Low

A trading strategy that involves buying during a sequence of increasing lows.

Successful Test

A market condition where previous highs or lows are confirmed before trading.

Strongest Pattern in Swing Trading

Trading based on tests of previous highs or lows.