In this book, you will first learn the four dimensions of market position: multiple time frame momentum, pattern, price, and time. Each factor provides an important piece of information you will use to make a trading decision. A trading plan that does not include these four market dimensions is missing a big piece of the market puzzle and is much less effective than one that includes all four dimensions.
Most readers are familiar with momentum studies, also called indicators or oscillators. A momentum indicator by itself is not of much practical use to the trader. All momentum studies are lagging indicators. They are great for showing you the current market position relative to the past, but are not of much help in pointing to the probable trend position in the future—unless you use them in the unique way you will learn in Chapter 2. Chapter 2 presents a momentum strategy used by few traders that will teach you how to use the lagging momentum indicators as a powerful technique as a filter for trade direction and execution setups. This multiple time frame momentum strategy will become the most useful and practical momentum application you can add to your trading plan.
Elliott wave pattern analysis has been so overcomplicated and misinterpreted over the years that many traders avoid it like the plague. I don't blame them. In Chapter 3, you will learn the simple guidelines based on Elliott wave structures to identify three frequent patterns for all markets and all time frames. One simple guideline will instantly reveal if a market should be in a trend or countertrend. This simple guideline itself should make a big difference in your trading results. It is critical for the trader to recognize whether the current market condition is part of a correction or trend, and, more important, if the correction or trend is in a position to be complete. This information can be a very important part of your trading plan and help prepare you for market reversals of any time frame. After you have learned the pattern guidelines in Chapter 3, you will be able to quickly recognize the probable structure position of any market and any time frame.
Most traders are familiar with Fibonacci (Fib) price retracements. Like a single time frame momentum study, they are not of much practical use by themselves to make a trade decision. Chapter 4 teaches you how to identify in advance which retracement level is likely to complete a correction of any time frame. It also teaches you how to project the probable trend targets in advance to be prepared for the price level at which a trend should be complete. You will also learn some new ratios that are not a part of the Fib ratio series that are a key to correction and trend price targets. Once you learn my Dynamic Price Strategies in Chapter 4, you should be prepared not just for temporary support and resistance levels, but for the specific price levels for trend and countertrend reversals.
Market timing in its true sense—identifying specific time target zones for trend change in any time frame—is rarely used by most traders. W. D. Gann taught many years ago, "When time is up, change is inevitable." Chapter 5 teaches you my unique Dynamic Time Strategies I've developed over the past 20 years, which will allow you to project the probable minimum and maximum time targets for trend reversal. You will also learn how to project time bands in any time frame to target a relatively narrow time range with a high probability for trend change. Practical market timing should be an important part of every trader's plan.
After you have learned these four key factors of market position that will prepare you to recognize optimal trade conditions, Chapter 6 teaches you two completely objective entry strategies and how to quickly determine the maximum position size for any trade. The strategies you learn in Chapter 6 will completely eliminate any guesswork on what price you should enter a market and what should be the stop-loss price. Most important, you will learn what all successful traders know: The proper position size for any trade setup on any time frame is one of the most important keys to long-term success for the business of trading.
Earlier I promised that you would learn how to manage a trade from entry to exit. Chapter 7 is the heart of this book, as far as I'm concerned. This is where you learn to apply all of the practical strategies, from recognizing high probability trade setups, to the specific entry strategy, stop-loss adjustment, and exit strategy. In other words, Chapter 7 teaches you how to manage a trade from entry to exit. You will learn how to make confident and logical decisions throughout the trade process.
Chapter 8 gives trade examples from students of my live and online workshops, educational CD programs, and other educational trading material I've produced over the past 20 years. These examples by other real-world traders show you how what you learn in this book has been put into practice every day in many different markets and many different time frames.
Chapter 9 offers more insight into the business of trading, what it takes to be successful, and a whole lot more. A lot of misleading information and sometimes just plain misinformation has been published about the business of trading. You'll find in this chapter that I don't pull any punches. If you thought I was a bit opinionated as you read through the earlier chapters, wait until you get to Chapter 9. I want you to be successful, and Chapter 9 will help keep you on track on the road to a successful trading business.
The video CD included with this book is an important part of the learning experience. Again, do not play the CD until you have read the book cover to cover. It will be a valuable resource, but you will only get the full benefit if you have first familiarized yourself with all the background material in the book.
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