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Trend Trading For Dummies by Barry Burns

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Chapter 14

Putting It All Together: The Five-Energy Trading Methodology

In This Chapter

arrow Putting all five energies together in one strong force

arrow Trading with the five-energy method

Chapters 10 through 13 cover each of the five energies individually. In this chapter, I share with you how to combine all five energies together to create a high-probability trading methodology.

This chapter is where you take all the information about the five energies and put it together to operate as a well-oiled trading machine designed to make you money!

Combining Forces with the Five-Energy Trading Method

All successful traders do essentially the same thing. They have a method that puts the odds, or probabilities, on their side. You can accomplish this in many ways, which is why many trading methods are available.

Some great traders have taught me their methods, and I’ve witnessed them make money with them. Through all of my experience and study, I’ve taken all I’ve learned and reduced it to a simple five-step process that I refer to as the five-energy methodology.

With this method, you simply look at five variables (what I refer to as energies) and wait for them to align, giving a buy or sell signal at the same time. Those five energies are

  • Trend
  • Momentum
  • Cycle
  • Support/Resistance
  • Scale

When these ...

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