The Four Core Types of Trades
Although we all employ different trading strategies across different time frames using different vehicles (stocks, options, futures, etc), there really are a limited number of pure trades we can take and it is helpful to know the major types and when we are employing them in our trading arsenal.
The four major types I propose are the following:
1. Breakout/Breakdown
2. Retracements
3. Reversals
4. Rangebound Fades
asr note: 1) I need parctice to identify these days and with in those days these patterns
2) Alchemy Trend packages should help to identify these trends - check alchemy site and this link. I should not start from scratch , should use Alchamy indicators , all I need is pattern indicators identification visually
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The Four Guiding Principles of Market Behavior
1. Principle 1: A Trend is More Likely to Continue its Direction than to Reverse
With price established in a clearly defined trend of higher highs and higher lows, certain key strategies and probabilities begin to take shape. Once a trend is established, it takes considerable force and capitalization to turn the tide. Fading a trend is generally a low-probability endeavor and the greatest profits can be made by entering reactions.
asr: for OIL on 9/30/09 I should I identify the above prinicple, for that I need to practice identifying these patterns .
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asr: read all of the post on this Page ..
A Compiliation of 21 Posts on Trend Days
- Three Types of Morning Openings
Why You Should Turn Off Indicators on Trend Days
Using the TICK to Time Entries on a Trend Day
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