Trading Chart

BUY 1.68

STOP 1.64

Tracking Parabolic SAR

The market has 4 basic phases and no trading system is suited to all of them. Some systems are suited to Phases 1 and 3, when the market is ranging, while others are designed to trade the trends in Phases 2 and 4. Trend-trading systems are more popular as they require less time and normally generate larger returns.


Trading Trends

The object of trend-trading is to go long at the transition from Phase 1 to Phase 2 and to exit before Phase 4. Some models also short the market during Phase 4, but this should be left to experienced traders .

Successful systems are built around the following principles:

Selecting securities.Use Stock Screens to identify potential Market Leaders.
Market direction.(a) Decide on the Time Frame that you are trading. (b) Confirm the Market Direction using a suitable trend indicator.

Trend direction.Using the same indicator, check the Trend Direction of each security.
Entry signals.(a) Take Entry Signals from a suitable momentum oscillator.(b) Use Trailing Stops to time entry and exit points.

Stop losses.(a) Set Stop Losses as soon as your trade is confirmed.(b) Do not exceed the Maximum Acceptable Loss.(c) Be technically consistent when Setting Stop Levels. (d) Adjust Stop Levels over time to protect your profits.

Exit signals.Take Exit Signals from a suitable trend indicator.


A Word Of Caution

These are typical steps that a trader will follow in deciding what stocks to buy, when to buy them and when to sell. It is not a magic formula, but consistent use should enhance your investment performance.

Trading methods can be compared to a carpenter's tools: Skilled use can produce outstanding results but unskilled use may lead to injury. Learn to use your trading tools properly before committing any capital. Study the behavior of the indicators over several years, learn their strengths and weaknesses and how they interact with each other and with the market. Start with a small amount of capital and only increase this when you are confident that you have a winning strategy.

http://www.incrediblecharts.com/technical/trading_basics.htm

The Essential Companion Workbook for Martin Pring's Best-Selling Technical Analysis Explained Martin Pring's Technical Analysis Explained has long been the acknowledged bible for gaining a clear understanding and hands-on knowledge of technical analysis. Now let Study Guide for Technical Analysis Explained help you profit even more from this essential book by coaching you on its most important ideas and techniques until they become automatic in the heat of trading battle. Packed with hundreds of questions that correspond to chapters and sections throughout the book, this valuable study guide features: Charts and graphs to help you visually digest the concepts presented Full text answers to guarantee your complete understanding of each important idea Fill-in-the-blank, multiple choice, and matching question formats The hard-hitting, no-nonsense style that made Technical Analysis Explained a classic Technical analysis mastery isn't easy, but its financial rewards make it virtually indispensable. Use Study Guide for Technical Analysis Explained to reach the next level of technical analysis education, and ensure that you enter every trading day with the weapons you need to come out on top.

http://www.amazon.com/gp/product/0071381929/ref=pd_sim_b_2/104-7033550-8157504?%5Fencoding=UTF8&v=glance&n=283155

Recommended for professional certification by the Market Technician's Association The Original and Still Number One Technical Analysis Answer Book Technical Analysis Explained, 4th Edition, is today's best resource for making smarter, more informed investment decisions. This straight-talking guidebook details how individual investors can forecast price movements with the same accuracy as Wall Street's most highly paid professionals, and provides all the information you will need to both understand and implement the time-honored, profit-driven tools of technical analysis. Completely revised and updated for the technologies and trading styles of 21st century markets, it features: Technical indicators to predict and profit from regularly occurring market turning points Psychological strategies for intuitively knowing where investors will seek profits and arriving there first! Methods to increase your forecasting accuracy, using today's most advanced trading techniques Critical Acclaim for Previous Editions: "One of the best books on technical analysis to come out since Edwards and Magee's classic text in 1948.... Belongs on the shelf of every serious trader and technical analyst." Futures "... Technical Analysis Explained [is] widely regarded as the standard work for this generation of chartists." Forbes Traders and investors are creatures of habit who react and often overreact in predictable ways to rising or falling stock prices, breaking business news, and cyclical financial reports. Technical analysis is the art of observing how investors have regularly responded to events in the past and using that knowledge to accurately forecast how they will respond in the future. Traders can then take advantage of that knowledge to buy when prices are near their bottoms and sell when prices are close to their highs. Since its original publication in 1980, and through two updated editions, Martin Pring's Technical Analysis Explained has showed tens of thousands of investors, including many professionals, how to increase their trading and investing profits by understanding, interpreting, and forecasting movements in markets and individual stocks. Incorporating up-to-the-minute trading tools and technologies with the book's long-successful techniques and strategies, this comprehensively revised fourth edition provides new chapters on: Candlesticks and one- and two-bar price reversals, especially valuable for intraday and swing traders Expanded material on momentum including brand new interpretive techniques from the Directional Movement System and Chaunde Momentum Oscillator to the Relative Momentum Index and the Parabolic Expanded material on volume, with greater emphasis on volume momentum along with new indicators such as the Demand Index and Chaikin Money Flow Relative strength, an increasingly important and until now underappreciated arm of technical analysis Application of technical analysis to contrary opinion theory, expanding the book's coverage of the psychological aspects of trading and investing Technical analysis is a tool, nothing more, yet few tools carry its potential for dramatically increasing a user's trading success and long-term wealth. Let Martin Pring's landmark Technical Analysis Explained provide you with a step-by-step program for incorporating technical analysis into your overall trading strategy and increasing your predictive accuracy and potential profit with every trade you make.

http://www.amazon.com/gp/product/0071381937/ref=pd_bxgy_text_b/104-7033550-8157504?%5Fencoding=UTF8

John J. Murphy has now updated his landmark bestseller Technical Analysis of the Futures Markets, to include all of the financial markets.
"If one could read only one book on technical analysis, this should be the one." --Knight-Ridder Financial Products and News (on the first edition, Technical Analysis of the Futures Markets, 0-13-898008-X)
This outstanding reference has already taught thousands of traders the concepts of technical analysis and their application in the futures and stock markets. Covering the latest developments in computer technology, technical tools, and indicators, the second edition features new material on candlestick charting, intermarket relationships, stocks and stock rotation, plus state-of-the-art examples and figures. From how to read charts to understanding indicators and the crucial role technical analysis plays in investing, readers gain a thorough and accessible overview of the field of technical analysis, with a special emphasis on futures markets. Revised and expanded for the demands of today's financial world, this book is essential reading for anyone interested in tracking and analyzing market behavior.
"One way to get started in technical analysis is to read a good book on the subject. One of my favorites is Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications by John J. Murphy. It's an easy read." Ralph J. Acampora, CMT, Managing Director, Prudential Securities Inc.

http://www.amazon.com/gp/product/0735200661/ref=pd_sr_ec_cs_b/102-1555906-9228962?s=books&st=%2A&v=glance&n=283155

John J. Murphy has now updated his landmark bestseller Technical Analysis of the Futures Markets, to include all of the financial markets.
"If one could read only one book on technical analysis, this should be the one." --Knight-Ridder Financial Products and News (on the first edition, Technical Analysis of the Futures Markets, 0-13-898008-X)
This outstanding reference has already taught thousands of traders the concepts of technical analysis and their application in the futures and stock markets. Covering the latest developments in computer technology, technical tools, and indicators, the second edition features new material on candlestick charting, intermarket relationships, stocks and stock rotation, plus state-of-the-art examples and figures. From how to read charts to understanding indicators and the crucial role technical analysis plays in investing, readers gain a thorough and accessible overview of the field of technical analysis, with a special emphasis on futures markets. Revised and expanded for the demands of today's financial world, this book is essential reading for anyone interested in tracking and analyzing market behavior.
"One way to get started in technical analysis is to read a good book on the subject. One of my favorites is Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications by John J. Murphy. It's an easy read." Ralph J. Acampora, CMT, Managing Director, Prudential Securities Inc.

http://www.amazon.com/gp/product/0735200661/ref=pd_sr_ec_cs_b/102-1555906-9228962?s=books&st=%2A&v=glance&n=283155

The first compilation of the top technical trading software used by leading traders In Ultimate Technical Trading Software, authors Paul Leo and Peter Temple compile and analyze the key technical trading software designed and developed by top traders. Categorized according to the technical analysis methodology, this distinctive book also includes interviews with the developers of these systems, allowing readers to better understand the unique features of each type of trading software as well as how to modify each system for optimal personal performance. Ultimate Technical Trading Software also includes a CD-ROM that contains demos for all software featured in the book. In a single volume, this book offers a one-stop look at the software used by leading technical analysts around the world. It acts as a starting point for researching and learning for new technical analysts and at the same time, helps serious traders develop their own system or software. Highly illustrative and visually accessible, this is the ultimate compendium for anyone involved in technical trading. This title that compiles and analyzes the key technical trading software designed and developed by top traders. Categorized according to the technical analysis methodology, the book also includes interviews with the developer of each trading software in order to better understand their individual features and how to optimize its system for effective use.

http://books.global-investor.com/books/16203.htm?ginPtrCode=00000&identifier=c12ff1caec1eca6498caf63e17ec590b

Soviet-born author and practicing psychiatrist Elder (director, Financial Trading Seminars, Inc.) shares his learning over the years as a professional trader and expert in technical analysis and his principle of understanding the three Ms (Mind, Method, Money), which will strengthen the discipline required to be successful in trading. He explores crucial factors in the markets that most experts overlook, including time, volume, and open interest, and describes little-known indicators to track them profitably. In addition, he covers many of the more technical approaches to investing in futures, such as factoring in the meaning from the Elliott Wave, oscillators, moving averages, Market Logic, and point-and-figure charting. His unique viewpoints in this overly saturated genre explain his particular view that most traders sabotage themselves, while offering tips for others to avoid doing the same. The narration by Richard Davidson soundly guides the listener through this highly specialized work that, although first published seven years ago, remains recommended for university libraries supporting a finance and business curriculum.DDale Farris, Groves, TX Copyright 2001 Reed Business Information, Inc. --This text refers to the Audio CD edition.

http://www.amazon.com/gp/product/0471592242/ref=pd_sim_b_4/103-1788104-6863845?%5Fencoding=UTF8&v=glance&n=283155

Power Trading/Power Living could go down as the "Bible" of trading in the not so distant future. The book, a follow up to Michael's International Best Seller, and critically acclaimed - Rule the Freakin' Markets, gives intimate details on what it's like to not only be a successful trader, but on how to incorporate a trader's life into a POWERFUL LIFE!

While Rule the Freakin' Markets is a classic for it's easy to understand and fluid review of a trader's psychology and some of the rules a newbie trader needs to know to flourish, Power Trading/Power Living goes infinitely further, giving FULL and intimate details and actual trades that helped make Michael a legendary trader.

You'll learn;

*POWERFUL Trends that can make you money in today's market - these are actual trends that have worked countless times for Michael and his 1000s of traders at Trendfund.com

*POWERFUL Options strategies. From an OPTIONS PRIMER, to advanced strategies such as Straddles/Strangles, Leaps and Selling Naked Calls and Puts, Power Trading/Power Living gives you the keys to the kingdom in terms of how to leverage your money as an options trader - just like the Pros!

*POWERFUL intraday trading strategies, including - The 10 am rule, Playing the GAPS, Using Technical Analysis as an intraday tool. Whether you want to trade for 5 minutes, or 5 hours, this book gives you the tools you need to SUCEED!

*POWERFUL swing trading strategies. Where the 1 hour trader needs to know the GAPS and the 10 am rule, the SWING TRADER needs to know what to look for to hold onto a stock for a day, a week, a month, or a year. From Blue Skies breakouts, to Earnings Runners, this book gives you the tools you need to BUY AND HOLD, without risking it all!

*POWERFUL living strategies. Once you make the BIG Ka-chingos this book can unlock for you, you'll need to learn how to live a life and a destiny of your own choosing. Power Trading/Power Living gives you insights into what it takes to be a WINNER on EVERY level of your LIFE!

This is your chance to LEARN TO EARN and LEARN TO LIVE a POWERFUL LIFE from one of the top traders of all-time, Michael "Waxie" Parness. Do not miss this unique opportunity. This book takes Michael's best seller, Rule the Freakin' Markets and takes it 10 steps further, giving you actual winning and losing trades so you can increase your profits, and increase your life expectancy!


About the Author

A high school dropout, who once lived homeless on the streets, Michael Parness is now a hero to investors and traders everywhere. Michael is chief executive officer and founder of TrendFund.com, the leading online trend-based advisory service for the individual trader. Launched in 1999, Trendfund.com has over 75,000 customers in 35 countries worldwide.

Michael's best selling book, Rule The Freakin' Markets! (St. Martin's Press, 2002), has provided thousands of individual investors with practical trading tips for reading the markets and trading with confidence - without the help of brokers or analysts. His second book, Power Trading/Power Living will be available soon. His "everyman" approach to trading breaks down the market into historical trends or market tendencies, which provide explosive short and long-term market opportunities to his members.

legendary trader who famously turned a few thousand dollars into several million, Michael serves as Trendfund.com's lead financial advisor, guiding thousands of subscribers who seek his trading expertise in both bull and bear market conditions. Like all Trendfund members, Michael uses an online persona; his trading name, "Waxie," is a nod to a former career in sports memorabilia.

Offering resources to traders at all levels - from housewives to Wall Street analysts - Trendfund.com helps its members take control of their money through analysis and tips from Parness and his team, interactive chats, real-time news, personalized trading classes, and pre- and post-market intelligence.

Michael is a native New Yorker whose first entrepreneurial venture was the creation of a sports memorabilia company called Waxman. Over a ten-year period, Michael built Waxman into New York's top provider of sports collector's items. After taking a broker-friend's bad advice and losing his life savings, he developed an interest in the financial markets, and spent his spare time researching market trends and developing his own theories on market behavior.
Determined to earn back his losses and vowing to never use a broker again, Michael began trading for himself, with the moniker "Waxie." Making use of the skills and instincts he cultivated through years of careful research, Michael turned $33,000 into more than seven million dollars in less than three years.

Michael is regularly consulted for investment advice by major media including The Wall Street Journal, CNNfn, CNBC, New York Post, FOX News, Financial Times, Business Talk Radio and Crain's New York Business. His informational trading seminars draw thousands of attendees across the country, and he has guest lectured at UCLA and Tulane University. At Tulane University in Spring 2004, Michael will be the first graduate level teacher in the country to focus on Day/Trend Trading. His "Trend Trading To Win" infomercial has sold over 100,000 trading courses around the world on how to make money in any market.

An award-winning playwright, Michael's work has been produced extensively in New York and Los Angeles. His screenplay, "Random Acts of Kindness," is a two-time Sundance Institute Screenwriter's Lab finalist and his first feature film, MAX & GRACE is being released in Spring 2004. In addition, Dustin Hoffman's Punch Productions is producing an autobiographical film based on Michael's life.

Michael, 40, after returning to school, finally graduated Summa Cum Laude from Hunter College in New York City, and holds a Bachelor of Science degree in English. He lives on Manhattan's Upper West Side where he continues to rule the freakin' markets every day!

http://www.amazon.com/gp/product/0974339121/ref=pd_bxgy_text_b/104-1781378-8559160?%5Fencoding=UTF8

Michael "Tiny" Saul has built a tremendous following among day traders, short-term stock traders, and swing traders with his insightful, unbiased, real-time, chat-based market analysis and commentary in the Trendfund.com live trading chat room. Each and every day he diligently analyzes the stock market with self-taught routines to uncover the best trading opportunities. In his new book, Charting, an Introduction to Technical Analysis and its Concepts, Saul divulges the technically based analysis and routines he employs in his real-time and end of day work.

Unlike most books on technical analysis, which include too much extraneous material and leave the trader poorly equipped to face daily challenges, Saul focuses on how to use a specific set of technical methods into a unified strategy for selecting short-term trading opportunities in all market environments.

Instead of being deluged with technical concepts, Saul teaches traders to focus on the methods necessary to pull the trigger on trades. Experienced traders will find Saul’s direct and easy to follow approach a breath of fresh air as he concentrates on what trading is really all about: finding consistent money-making opportunities.


From the Publisher

In the middle of 1999 both Michael "Tiny" Saul and I were members of another online chat room (that shall go nameless!). I was making money and doing very well on my own through what we now call Trend Trading, but people in that room kept talking about this thing called Technical Analysis, or Charting. I had heard about this concept and given that I was, and still am, always looking for an "edge", it seemed intriguing to me. I asked someone in the room, who had befriended me, what I could do to learn about Technical Analysis and he steered me toward, well, TINY. I remember feeling a little weirded out by the fact that upon my very first contact with Tiny, he gave me his home phone number and told me he'd be happy to help me. Being a good New Yorker, I'm always a little skeptical when someone I've never met offers to help me and gives me their home number the very first time I have contact with them! New York isn't Kansas, after all, ya know! But, since I was hungry to learn about Technical analysis, I called Tiny. The first conversation we had lasted, from what I recall, several hours. He was honest, open, informative and VERY funny. Later I found a deeper side. Tiny is genuine, kind and profoundly interested in helping other people. And, maybe most of all, he was extremely passionate about Technical Analysis! He seemed to know EVERYTHING! And, even better, he was interested in learning MORE and helping others, just like I was. I think it was our third conversation where I told him a little about myself and that I was thinking about starting my own website to help other traders make money and be successful. He said that was great but I think he was probably thinking to himself, "oh boy, another big shot wannabe!". Shortly thereafter, I asked Tiny to be my Chief Technical Analyst of what would eventually become Trendfund.com. My jaw drops every time I see Tiny do a seminar, or listen in on an online class. He is a true teacher and believer in what he does, and the good it can do for others. When WE started Trendfund.com the idea was to create a community for traders that was safe from the investing community and the media's ideas of what was right about the market. Given my scattered family background, in hindsight I think I wanted to create a new extended family of traders, all looking to help each other make money, and be successful in other areas of their lives. Tiny has been possibly THE driving force for the success of Trendfund.com outside myself. His passion empowers 1000s of others to seek their own dreams and achieve their own successes. When I asked Tiny to work with me for nothing, I promised him that one day he'd make a lot of money with Trendfund.com. All I asked him was for him to remain passionate and loyal to our members, and to put their needs as equal to his own. Tiny has kept that promise to me, and I've kept my promise to him. He's helped grow Trendfund.com from a tiny trading community into the true leader in alternative investing. I'm profoundly grateful that I happened upon Tiny from the other chat room. Like everything else in life, I believe there are no coincidences. I'm glad that I made that first phone call and didn't let my imagination run wild. Tiny is one of the good guys and I am proud to be a part of Tiny's first book! I congratulate my partner and my very good friend, Tiny, and wish him continued success - no one deserves it more than he! Whether you are a total newbie (new to Technical Analysis), and don't know a head and shoulders from a tongue in cheek, or you are a wise old "chartist", I believe this book will provide you with not only the foundation to begin your wonderful journey as a trader (or investor), but the power to enact it for PROFITS! Enjoy his book and tell him about it, cause it'll give him a big smile. MICHAEL "Waxie" PARNESS CEO Trendfund.com CEO Trend Trading to Win

http://www.amazon.com/gp/product/0974339105/qid=1147571695/sr=2-3/ref=pd_bbs_b_2_3/104-1781378-8559160?s=books&v=glance&n=283155