O'Reilly logo

Trading the Measured Move: A Path to Trading Success in a World of Algos and High Frequency Trading by David Halsey

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

CHAPTER 4

More Tools for Trading Power

Filling the Toolbox

Any good auto mechanic is equipped with a toolbox filled with carefully selected tools in preparation for covering any and all situations that might arise. All traders should be similarly equipped and prepared. In this book, we've already seen a number of tools suited for the measured move (MM) trader: Fibonacci retracements, charts of various durations and time increments, New York Stock Exchange (NYSE) tick and the tick divergence, the daily pivot (DP), and both NYSE and Nasdaq breadth. In this chapter, we will investigate a few more tools equally suited for the critical tasks involved in trading the powerful currents of today's global markets.

Watching the Clock (and the Calendar)

One of the most important aspects of any trading plan is to know when to trade and, probably more important, when not to trade. On the short list of most common mistakes made by beginning traders is the mistake of entering a trade when there is no clear and compelling reason for doing so. Many beginners feel that they've got to be “in the action” at all times or else they're not doing their job. They feel that to call themselves a trader they've got to be “in the game” at all times. Nothing could be further from the truth. The pros and the successful retail traders know better. They know when to wait. They know how to sit on their hands (SOH). They know that if a trading opportunity is not present at the moment, one will be in the future. ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required