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Home- **Abbreviations** - **Ail** - **Ais** - **B** - ==**Blshs**== - **Bo** - **C** - **Db** - **Dt** - **Ema** - **H** - **Hft** - **Hl** - **Hh** - **L** - **Lh** - **Ll** - **Mm** - **Ma** - **Mag** - **Mtr** - **O** - **Tr** - **Ttr** - ==**Tbtl**== - **Market In Trend Or Trading Range** - Markets Are Always Either In A Trend Or A Trading Range. - Trends Start With Breakouts, Then Transition Into Channels (Weak Or Strong), Then In Trading Ranges (Wide Or Narrow) - The Different Traits Are Traded Differently. - **Breakouts** - Every Trend Bar Is A Bo. - Bos Could Be A Single Bar Or Several Bars. - Bos Close At Or Near Their Highs And Higher Than Resistance Or The Highs Of Many Other Bars To Their Left. - Bos Fail 80% Of The Time, Resulting In Reversals. - Usually Traders Like To See Several Strong Bars In A Bo Before Deciding To Enter The Trade. - ==**Support And Resistance**== - ==Support And Resistance Are Areas Above Or Below Price Where Previous Price Action Results In Stopping Price From Continuing Within A Trend.== - **Abc Correction** - A 2 Legged Correction Within A Trend. - Typically, These Legs Are Sideways To Down In A Bull Trend, But The Down Direction Is Not A Requirement. Other Varieties Can Occur. - An Abc Correction Is A Minor Trend Reversal As They Occur Between Legs In A Trend. - Because This Type Of Correction Typically Has 2 Legs, We Can Identify The H1, H2 Or L1, L2 Signal Bars. - Traders Should Be Taking The H2/L2 Bars To Enter A Trade From A 2 Legged Correction. - Sometimes Corrections Have Only One Leg. - Also, The Leg Counting Can Be Subjective. Markets Are Never Precise. - **Always In Bull/Bear** - Always In Refers To The Nature Of The Current Market - If It Is Trending, The Market Is Always In. - This Means That Traders Who Need To Always Be In The Market, Should Be Looking At Entering. - Always In Does Not Exist When The Market Is In A Trading Range. - **Candle Types** - Trend Bars - Inside Bars - Tr On A Smaller Timeframe - Outside Bars - **Signal Bars/Entries** - Signal Bars Are The Bars Of A Pattern That Indicate A Trade Should Occur On The Next Bar. - The Next Bar Is Called An 'Entry' Bar. - **Scalping** - Scalping Refers To Not Holding Positions For More Than About 1-5 Bars. - Swing Trading Refers To Holding Positions Until The Trend Ends. - **Major Trend Reversal** - Major Trend Reversal Indicates That We Have Fully Terminated The Old Trend And We Are Now Trending In The Opposite Direction. - Often A Bo Is Required To Determine If A Reversal Is An Mtr. - If A Reversal Is Not Especially Strong, It Is A Minor Trend Reversal And Trader Can Expect Another Leg In The Direction Of The Trend Once The Pullback Is Over. - **Context** - The Bars To The 'Left' That Provide Information About The Current State Of The Market. - Understanding Context Is Critical In Making Decisions About When To Enter Or Exit Trades. - **Computers** - > 70% Of All Trading Is Done By Algorithms On Hft Computers.

- Abbreviations - Ail - Ais - B - ==Blshs== - Bo - C - Db - Dt - Ema - H - Hft - Hl - Hh - L - Lh - Ll - Mm - Ma - Mag - Mtr - O - Tr - Ttr - ==Tbtl== - Market In Trend Or Trading Range - Markets Are Always Either In A Trend Or A Trading Range. - Trends Start With Breakouts, Then Transition Into Channels (Weak Or Strong), Then In Trading Ranges (Wide Or Narrow) - The Different Traits Are Traded Differently. - Breakouts - Every Trend Bar Is A Bo. - Bos Could Be A Single Bar Or Several Bars. - Bos Close At Or Near Their Highs And Higher Than Resistance Or The Highs Of Many Other Bars To Their Left. - Bos Fail 80% Of The Time, Resulting In Reversals. - Usually Traders Like To See Several Strong Bars In A Bo Before Deciding To Enter The Trade. - ==Support And Resistance== - ==Support And Resistance Are Areas Above Or Below Price Where Previous Price Action Results In Stopping Price From Continuing Within A Trend.== - Abc Correction - A 2 Legged Correction Within A Trend. - Typically, These Legs Are Sideways To Down In A Bull Trend, But The Down Direction Is Not A Requirement. Other Varieties Can Occur. - An Abc Correction Is A Minor Trend Reversal As They Occur Between Legs In A Trend. - Because This Type Of Correction Typically Has 2 Legs, We Can Identify The H1, H2 Or L1, L2 Signal Bars. - Traders Should Be Taking The H2/L2 Bars To Enter A Trade From A 2 Legged Correction. - Sometimes Corrections Have Only One Leg. - Also, The Leg Counting Can Be Subjective. Markets Are Never Precise. - Always In Bull/Bear - Always In Refers To The Nature Of The Current Market - If It Is Trending, The Market Is Always In. - This Means That Traders Who Need To Always Be In The Market, Should Be Looking At Entering. - Always In Does Not Exist When The Market Is In A Trading Range. - Candle Types - Trend Bars - Inside Bars - Tr On A Smaller Timeframe - Outside Bars - Signal Bars/Entries - Signal Bars Are The Bars Of A Pattern That Indicate A Trade Should Occur On The Next Bar. - The Next Bar Is Called An 'Entry' Bar. - Scalping - Scalping Refers To Not Holding Positions For More Than About 1-5 Bars. - Swing Trading Refers To Holding Positions Until The Trend Ends. - Major Trend Reversal - Major Trend Reversal Indicates That We Have Fully Terminated The Old Trend And We Are Now Trending In The Opposite Direction. - Often A Bo Is Required To Determine If A Reversal Is An Mtr. - If A Reversal Is Not Especially Strong, It Is A Minor Trend Reversal And Trader Can Expect Another Leg In The Direction Of The Trend Once The Pullback Is Over. - Context - The Bars To The 'Left' That Provide Information About The Current State Of The Market. - Understanding Context Is Critical In Making Decisions About When To Enter Or Exit Trades. - Computers - > 70% Of All Trading Is Done By Algorithms On Hft Computers.

Key Concepts in Trading

Market States: Markets can generally be categorized into two main states: a Trend or a Trading Range. A Trend is characterized by consistent upward or downward price movements, while a Trading Range occurs when prices oscillate between defined support and resistance levels without establishing a clear direction. Understanding these states is crucial for traders to identify potential entry and exit points.
Breakouts (BO): Breakouts are pivotal moments in trading where the price moves beyond established support or resistance levels, signaling the initiation of a new trend. However, it is important to note that breakouts often fail, with studies suggesting that around 80% of them do not lead to sustained price movements. This statistic underscores the necessity for traders to employ robust risk management strategies when trading breakouts.
Support and Resistance: These are critical price levels that can halt or reverse trends. Support is the price level where buying interest is strong enough to overcome selling pressure, while resistance is where selling interest prevails over buying. Identifying these levels can help traders make informed decisions about where to enter or exit trades, as they often indicate potential reversals.
ABC Correction: This concept refers to a common pattern observed in trending markets, where price movements undergo two-legged corrections before resuming the primary trend. The ABC correction consists of three waves: the A wave is the initial move against the trend, the B wave is a retracement, and the C wave is the continuation of the trend. Recognizing this pattern can aid traders in predicting potential reversals or continuations.
Always In: This trading philosophy suggests that traders should remain engaged in the market during trending conditions, whether they are in a long or short position. The idea is to capitalize on the momentum of the trend rather than attempting to time the market perfectly, which can often lead to missed opportunities.
Candle Types: Understanding different candle types is essential for interpreting market sentiment. Trend bars indicate strong price movements in one direction, inside bars suggest consolidation and indecision, while outside bars signal potential reversals by encompassing the range of the previous candle. Each type provides valuable insights into market dynamics.
Signal Bars: These are specific candlestick formations that indicate potential trade entries. A signal bar often has characteristics such as a strong close, significant range, or location at key support or resistance levels. Recognizing these bars can enhance a trader's ability to make timely and informed trading decisions.