High Probability Trading Strategies: Entry to Exit Tactics for the Forex, Futures, and Stock Markets

Foreword ix

Preface xi

PART ONE High Probability Trading Strategies for Any Market and Any Time Frame 1

CHAPTER 1 High Probability Trade Strategies for Any Market and Any Time Frame 3

Any Market, Any Time Frame 4

Conditions with a High Probability Outcome 4

Leading and Lagging Indicators 5

What You Will Learn in This Book and CD 6

Let’s Get Started 8

CHAPTER 2 Multiple Time Frame Momentum Strategy 9

What Is Momentum? 11

Multiple Time Frame Momentum Strategies 12

The Basic Dual Time Frame Momentum Strategy 12

Momentum Reversals 14

Most Price Indicators Represent Rate-of-Change 15

Momentum and Price Trends Often Diverge 16

How Dual Time Frame Momentum Strategies Work 19

Which Indicators to Use for Multiple Time Frame Momentum Strategies 31

What Are the Best Indicator Settings to Use? 36

Dual Time Frame Momentum Strategy Rules 43

Dual Time Frame Momentum Strategy Trade Filter 46

CHAPTER 3 Practical Pattern Recognition for Trends and Corrections 49

Why Is It Important to Identify a Trend or Correction? 50

Simple Pattern Recognition Based On Elliott Wave 52

Trend or Correction: The Overlap Guideline 52

ABC and Away We Go 58

Complex Corrections 64

Overlap Is the Key to Identify a Correction 66

Trends and Five-Wave Patterns 67

Greater in Time and Price 75

Fifth Waves Are the Key 77

Momentum and Pattern Position 79

Momentum and Pattern Not Enough 82

CHAPTER 4 Beyond Fib Retracements 83

Internal Retracements and Corrections 84

Alternate Price Projections Qualify Internal Retracements 89

More Alternate Price Projections 92

External Retracements Help Identify the Final Section of a Trend or Correction 96

Pattern Price Targets 99

Price, Pattern, and Momentum 106

No Excuse 108

CHAPTER 5 Beyond Traditional Cycles 111

Time Retracements and Corrections 112

Alternate Time Projections Narrow the Time Retracement Range 114

More Time Factors 117

The Time Target Zone 118

Time Bands 128

More Time Factors 135

Conclusion 137

CHAPTER 6 Entry Strategies and Position Size 139

Entry Strategy 1: Trailing One-Bar Entry and Stop 140

Entry Strategy 2: Swing Entry and Stop 150

Position Size 158

Conclusion 162

CHAPTER 7 Exit Strategies and Trade Management 163

Multiple-Unit Trading 164

Risk/Reward Ratios 165

Exit Strategies 166

Trade Management 168

Trade Only the High Probability, Optimum Setups 197

PART TWO Trading the Plan 199

CHAPTER 8 Real Traders, Real Time 201

Adam Sowinski (Slorzewo, Poland) 202

Jagir Singh (London, United Kingdom) 206

Cees Van Hasselt (Breda, The Netherlands) 214

Kerry Szymanski (Tucson, Arizona) 218

Derrik Hobbs (Warsaw, Indiana) 222

Carolyn Boroden (Scottsdale, Arizona) 227

Jaime Johnson (Encinitas, California, and Bogata, Columbia) 231

Chapter Summary 234

CHAPTER 9 The Business of Trading and Other Matters 237

Routines and Trading Records 237

Why Traders Win or Lose 239

Technology, Trading Time Frames, Markets to Trade, and Leverage 242

Trade for Points, Not for Ticks 244

You Can’t Buy Success 244

You CAN Be a Successful Trader 245

More Bar-by-Bar Entry to Exit Trade Examples 247

Glossary 249

Bibliography 261

About the Author 263

Index 265