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Trading Tools and Tactics: Reading the Mind of the Market

Book Description

From the founder of the leading online trading education company Pristine.com, a simple technical method to trade or invest

Many trading books present esoteric trading concepts and complicated indicators that may look good on paper when viewing the past, but prove ineffective in the real world.

Trading Tools and Tactics: Reading the Mind of the Market doesn't just make investing look easy; it makes trading easy by teaching you not only how to identify price moves, but by helping you understand why prices move the way they do.

  • Covers managing trades and setting entries and stops, and helps you view how failed trades or chart patterns of the past can become new opportunities

  • Describes how to identify and understand supply and demand as it relates to resistance and support, as well as how to combine and read multiple time frames that offer the best opportunity to take profits

  • Details both concepts and practical tools to use for life, not just the current market

Investing is all about finding the right price patterns to profit from by understanding support, resistance, trends, and volume as well as identifying the best time frames to trade. Trading Tools shows you how to do just this.

This ebook does not include access to the companion materials.

Table of Contents

  1. Cover
  2. Series
  3. Title Page
  4. Copyright
  5. Dedication
  6. Introduction: The Journey Begins
    1. UNDERSTANDING THE LANGUAGE OF CHARTS AND PRICE ACTION
    2. HOW TO USE THIS BOOK
    3. ABOUT THE CHARTS IN THIS BOOK
    4. A NOTE ABOUT PRISTINE.COM
  7. Chapter 1: Subjective Doesn't Work in the Market
    1. THE GURU SYNDROME
    2. THE PITFALLS OF FUNDAMENTAL ANALYSIS
    3. TECHNICAL INDICATORS: ADDING SUBJECTIVITY TO THE CHART
    4. APPROACHING THE MARKETS OBJECTIVELY
    5. IN SUMMARY
  8. Chapter 2: Candlestick Analysis
    1. A SINGLE CANDLE
    2. MULTIPLE CANDLE FORMATIONS
    3. FAILURE IS NOT ALWAYS BAD
    4. IN SUMMARY
  9. Chapter 3: Support and Resistance
    1. PRICE PATTERNS
    2. RECOGNIZING REFERENCE POINTS
    3. THE TWO FORMS OF SUPPORT AND RESISTANCE: MAJOR AND MINOR
    4. HOW SUPPORT AND RESISTANCE AREAS FORM
    5. IN SUMMARY
  10. Chapter 4: Moving Averages the Right Way
    1. A VALUABLE TECHNICAL MEASUREMENT
    2. CONVERGENCE CAN HELP
    3. MOVING AVERAGES AS FOCAL AREAS
    4. STAYING OBJECTIVE
    5. A FEW GOOD RULES WHILE USING MOVING AVERAGES
    6. OTHER POINTS TO CONSIDER
    7. MOVING AVERAGES TO FIND PLAYS
    8. IN SUMMARY
  11. Chapter 5: Volume Is Money
    1. THE FALLACIES OF VOLUME
    2. USING VOLUME PROPERLY
    3. THE PRIMARY USES OF VOLUME
    4. VOLUME AS IT RELATES TO TRADABILITY
    5. IN SUMMARY
  12. Chapter 6: Retracement Analysis
    1. THE CONCEPT OF RETRACEMENTS
    2. TO RETRACE OR NOT TO RETRACE?
    3. RETRACEMENTS IMPLY A TREND
    4. CONTINUING TO KEEP IT OBJECTIVE
    5. WHAT LIES BEYOND 60 PERCENT?
    6. RETRACEMENT LEVELS IN DOWNTRENDS
    7. A SPECIAL RETRACEMENT PATTERN
    8. RETRACEMENT LEVELS IN SIDEWAYS TRENDS
    9. WHAT LIES BEYOND 100 PERCENT?
    10. THE BIGGER PICTURE
    11. IN SUMMARY
  13. Chapter 7: Bar-by-Bar Analysis
    1. OBJECTIVITY IS STILL THE GOAL
    2. A QUICK REVIEW OF INDIVIDUAL BARS
    3. HOW THE BARS INTERACT
    4. ADDITIONAL THOUGHTS
    5. IN SUMMARY
  14. Chapter 8: Market Internals
    1. DETERMINING PRICE MOVEMENT
    2. WHEN TO BE DIFFERENT
    3. FAVORITE MARKET INTERNALS
    4. A QUICK OVERVIEW OF INTERMARKET ANALYSIS
    5. IN SUMMARY
  15. Chapter 9: Relative Strength
    1. IDENTIFYING DIFFERENT TYPES OF RELATIVE STRENGTH
    2. IS RELATIVE STRENGTH ALWAYS GOOD?
    3. RELATIVE STRENGTH AND WEAKNESS WITH MORNING GAPS
    4. RELATIVE STRENGTH WITH SECTOR ANALYSIS
    5. RELATIVE STRENGTH TO MARKET INTERNALS
    6. IN SUMMARY
  16. Chapter 10: The Trend Is Your Friend
    1. WHAT MAKES A TREND?
    2. PIVOTS
    3. WHEN PIVOTS COME TOGETHER
    4. SOME SUBJECTIVE GUIDANCE
    5. KEEPING IT CLEAN
    6. CHECKING THE REACTION
    7. FINAL THOUGHTS
    8. IN SUMMARY
  17. Chapter 11: Shoot the Gap
    1. WHAT CAUSES A GAP?
    2. FALLACIES ABOUT GAPS
    3. GAPS AND THE DAILY CHART
    4. THE INTRADAY PLAY
    5. IN SUMMARY
  18. Chapter 12: Frame-by-Frame
    1. WHICH TIME FRAMES?
    2. THE FIRST GOAL OF USING MULTIPLE TIME FRAMES
    3. A POWERFUL CONCEPT EMERGES
    4. WARNING SIGNS IN THE MICRO TREND
    5. HIDDEN PATTERNS
    6. IN SUMMARY
  19. Chapter 13: Making Failure Work for You
    1. DID THE PLAY STOP, OR DID THE PATTERN FAIL?
    2. WHEN GOOD PATTERNS FAIL
    3. CAPITALIZING ON PREDICTABLE FAILURES
    4. EXPECTED (OR UNEXPECTED) FAILURE
    5. IN SUMMARY
  20. Chapter 14: Manage the Trade and the Money
    1. MANAGING THE MONEY—SHARE SIZE
    2. HOW MUCH TO RISK
    3. MANAGING THE MONEY—THROUGHOUT THE DAY
    4. CONSIDERATIONS WHEN SWING TRADING
    5. BASIC TRADE MANAGEMENT CONCEPTS
    6. MANAGING THE TRADE—STAYING WITH THE TREND
    7. MANAGING THE TRADE—ZOOMING DOWN
    8. IN SUMMARY
  21. Chapter 15: Getting Through a Typical Trading Day
    1. BEGINNING YOUR DAY
    2. PLANNING YOUR TRADE, TRADING YOUR PLAN
    3. AFTER THE CLOSE
    4. MAXIMIZING THE WINNERS, AND HANDLING THE LOSERS PROPERLY
  22. Chapter 16: There Is Only One Truth in the Markets
    1. PRICE IS KING
  23. Appendix A: Abbreviations
  24. Appendix B: Trade Types
  25. Glossary
    1. COMMONLY USED MARKET TERMS
    2. GLOSSARY OF COMMONLY USED TECHNICAL TERMS
  26. About the Companion Website
  27. Index