Range Contraction

Swing trading is profitable only when there are oscillations and good volatility. However, this volatility is quite cyclical in nature the market experiences a constant ebb and flow of range contraction range expansion. Toby Crabel elaborates on this principle in his book, Day Trading with Short-Term Price Patterns and Opening Range Breakout. He states that after the market has had a period of rest or range contraction, a trend day will often follow. A trend day is one in which the market opens...

Period

This chapter should really be titled Pinball-Part 2 Instead of using a one-period rate of change, we are going to use a 2-period rate of change. We will then calculate a shortterm pivot point to tell us when the 2-period rate of change is going to flip from a buy to a sell or vice versa. This pivot then tells us whether we want to go home long or short by the close on a fresh signal change. It is best used in conjunction with Taylor's swing trading methodology. Before we continue, let's review...

More Words On Trade Management

Trust also your own judgement, for it is your most reliable counselor. A man's mind has sometimes a way of telling him more than seven watchmen posted on a high tower. Now that you have seen our trading strategies, let us share a few more lessons we've learned over the years. First, if you are a beginning trader, only paper trade initially Enter each trade in a ledger exactly as if you were trading with real dollars. You must take it seriously Only after you have a legitimate record should you...

Momentum Pinball

Rsi Indicators Images

One of the most confusing aspects of Taylor's trading technique is knowing whether it's a buy day or a sell short day Taylor kept a very mechanical book, but even so he made trades which seemed out of sequence. He would actually short on a buying day, except then he would change the name to buying day high made first This is not very helpful to traders trying to learn his technique. The Momentum Pinball will automatically tell you if you should be buying or shorting the next day, As with the...