STRATEGIES2019-02-02T19:54:55-08:00

Thinking about strategy…

Identify the repeatable patterns in price action so you can
identify expectations about market behavior. 

Tools Of The Trade

  • Moving averages distinguish trends from ranges.
  • MACD identifies change in market behavior, i.e. timing for entries and exits.
  • Custom indicators and automated trading programs do the work.
  • A notebook and pen… I know it’s old fashioned, but it works! Let’s just say accountability is the first step to profitability.

It’s not about being right.

It’s about being ready!

The market flows from trends to ranges, and trends again.
When you know the repeatable patterns, you can anticipate
what comes next.

Up Trend

Price is doing its business above 2 moving averages.
Expect momentum and progression to higher highs.
When price goes sideways for 5 or more bars, get ready for retracement.

Down Trend

Price is doing its business below 2 moving averages.
Expect momentum and progression to lower lows.
When price goes sideways for 5 or more bars, get ready for retracement.

Trend Retracement

The pull-back off a trend is a 100% sure thing. The question is, how far will it go?
It’s a good time to play it safe – no more than 10% of the preceding trend. Don’t say I didn’t warn ya!

Inside Range

Classic range pattern when price ranges between 2 moving averages. Expect no or low momentum. When the market has no decision for direction, expect price to find its way to this slow moving pattern.

Outside Range

When price ranges around 2 moving averages, swinging above and below both within about 30 bars. It can look like a trend if it swings high enough, but expect much larger profits when it swings back through the pattern. There is no progress in one direction, which tells me I can be generous with my stop loss.

No Pattern

When 2 moving averages are right one top of each other, the market has come to a head. There is low probability of getting momentum and direction right.  It’s a good day to close shop early and head to the beach, or wherever you go for an afternoon off!

You Can Learn With Online Classes.

Inexpensive online courses teach you the full Combo and Hopper trading strategies. Understand the simple repeatable patterns of trends and ranges, so you can anticipate what comes next. Learn how to use the MACD, and you’ll never have to wonder about market timing.

            

See Courses

Jennifer’s Email List

This website uses cookies and third party services. Ok