- **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.
Updated 171d ago
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