Trading Fibonacci Retracement Levels

The chart above illustrates an example of trading Fibonacci ratio levels from the Russell Emini futues (ER2) 610 tick chart. One of the effective method to trade Fibonacci levels is to trade pullbacks in the direction of its primary trend near the Fibonacci retracement levels. For the first swing at AB, trade reversal occurred at the 61.8 retracement level. A long trade is entered at C with a stop order placed below A. On the second swingat CD, a long trade is entered at the 61.8 retracement...

Trade Chart Patterns Like The Pros

Don't read this book - MAKE MONEY WITH IT Trade Chart Patterns Like The Pros by Suri Dud-della is one of those rare opportunities to build a base of knowledge that can take you further each time you trade. Suri has laid out an indispensable tome on trading chart patterns based upon his real-life experiences in a format that will work well for the spectrum cf investors - from novice to expert. Trade Chart Patterns Like The Pros stays focused and does not overwhelm you with mathematical...

Zig Zag Patterns

Market prices move in a non-linear format and form peaks and troughs to signal the end-of-trends and the begin-of-trends. Connecting these peaks and troughs generate a pattern called ZigZag, which are used in Elliott Waves to detect various waves, using Fibonacci retracement to detect price clustering sequences. ZigZag patterns are also used to detect price patterns like M and W patterns. The construction of ZigZag patterns includes finding the key peaks and troughs with pivots and determining...

Fibonacci Zone Pivots

Jackson described a concept called Zone Probability Pattern Analysis, in his book Detecting High Profit Day Traders in the Futures Markets. In his book, he describes the dynamic statistical analysis of Fibonacci Zones using Open, High and Close to find high percentage support and resistance zones for the entire trading day. Robert Krausz has completed extensive analysis on High Probability of the Fibonacci Zones HPFZ concept by using Probability Matrix. Krausz used various close and...

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Trading Msh

A Market Structure High MSH is formed when markets are making major tops. They form near key resistance areas or key moving average levels, which is very significant. There are many theories of using MSHs in trading. One theory of MSH, is to find a critical resistance area and trade a short position. The other way is to find a series of past MSHs and build a trend line for resistance. The third way is to use MSH in a fractal wave form and build a larger wave structure using the distances...

NBar Rallies Declines

Range Bar Trading

Stocks making new Highs and new Lows with high volume attract momentum players. Momentum players continue to push these stocks until the supply or demand diminishes. But as in any rally or decline, these trends stop and reverse. The prices become oversold and overbought creating a condition for exhaustion of the supply and demand. Hence, if these prices reverse could be brief , an opportunity is presented. Traders who wait and take advantage of these counter-trades are daring and risky, but...

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Wide Range Bar

Seven Day Wide-Range and Outside Day Pattern WR70D A 7-day Wide Range bar is formed when a current bar has the widest range in the last 7 bars. An outside bar develops when the low of the current bar is lower than the previous bar and the current high is higher than the previous bar. Trades are only entered in the direction of the current trend. Wide Range bars forming at the start of a trend or at key reversal levels could signal strong bullish and bearish trends. If Wide-Range bars are...

Globex Overnight Pivots

Pit traders use Globex or overnight trading information extensively to determine key market trading levels for the current trading day. Globex trading hours start after the regular markets close and end before the regular markets open. For example, the Russell 2000 EMini futures on Chicago Mercantile Exchange CME , the regular market hours are from 9 30 am ET to 4 15 pm ET. Globex trading hours for Russell 2000 futures starts at 4 30 pm ET and ends at 9 29 am ET. Similarly, the Dow Emini...

Trading Candlestick Charts

The chart above illustrates various Candlestick patterns from the S amp P 500 Futures 610 tick chart. Various Candlestick patterns have been marked in the chart above and explained as follows 1 . A Doji pattern to suggest indecision in the prior direction. 2 . A Dark Cloud to signal a potential end of trend. Also see Hammer pattern prior to the Dark Cloud . 3 . Another Doji to signal indecision. 4 . A Piercing line followed by a strong trend reversal bar. 5 . A Bullish Engulfing pattern to...