Market Evaluation and Analysis for Swing Trading

by Lupien, Bill

• ISBN13: 9780071378338
• ISBN10: 0071378332
• Edition: 1st
• Format: Hardcover
• Copyright: 2003-10-29
• Publisher: McGraw-Hill

Summary

Strategies for grabbing inand-out trading profits in fast-changing markets Bill Lupien and David Nassar are two of today's most influential, respected voices for traders seeking profitable trading techniques without the hype. Market Evaluation and Analysis for Swing Tradingfocuses their combined expertise and name recognition on the swing trading skills, techniques, and mind-sets that seasoned pros have used for years to work markets to their own advantage. Lupien and Nassar explain and reinforce ideas and strategies that work today and should continue to yield strong results well into the future. Areas covered include: Methods for reading the strength of bids and offers Strategies for recognizing supply/demand imbalances Ways to spot, and profit from, market maker trading patterns

Author Biography

David Nassar is founder and president of MarketWise, the oldest and most influential trading center and school in the world. An active trader and author of numerous influential books, including the Wall Street Journal, Amazon #1, BusinessWeek, Forbes, and New York Times bestseller How to Get Started In Electronic Day Trading, Nassar is perhaps best known for his live trading seminars, where he demonstrates his methods in real time with real capital for institutions and traders.

Bill Lupien is the former chairman and CEO of Instinet, the largest and most liquid Electronic Communications Network (ECN), and one of the industry's most legendary and emulated traders. A former specialist on the Pacific Stock Exchange, NASDAQ market maker, and member of the SEC's advisory committee on development of a U.S. national market system, Lupien has been featured in The Wall Street Journal, Money, BusinessWeek, Wired, and other national publications. He continues to trade most days from his home in California.

Table of Contents

Acknowledgments	xiii
Foreword	xv
Introduction	xvii
A Parable of the Market	xvii
Philosophy of the Book	xviii
Composition of the Book	xxii
SECTION ONE PSYCHOLOGY AND PATTERNS
Chapter 1 The Mindset of the Markets	3	(8)
Rationality and Irrationality	4	(2)
Studying Charts	6	(1)
The Different Skills of Traders and Analysts	7	(1)
Success Requires More Than Skill	8	(3)
Chapter 2 Define Yourself in the Market	11	(14)
Trading versus Investing	11	(3)
Cyclical Markets versus Momentum Trends	14	(2)
Profitability Indifference	16	(1)
Invisible Hand Theory	17	(8)
Chapter 3 The Elasticity of Price	25	(26)
Random Walk Theory	25	(3)
Market Memory	28	(1)
Elasticity Swing Approach	29	(4)
Managing Uncertainty While Trading Strategy	33	(1)
Elasticity-Rules and Tactics Applied	34	(5)
Elasticity and Stops	39	(5)
Mental Trade Exercises	44	(1)
Opening Price Intraday Approach	45	(6)
Chapter 4 Market Symmetry	51	(22)
A Special Note on Velocity	52	(1)
Patterns and Symmetry	52	(9)
Trading Fibonacci Levels	61	(12)
Chapter 5 Technical Analysis	73	(60)
Your Opinion or Your Money	73	(1)
What Is Technical Analysis?	74	(1)
Foundations of Technical Analysis	75	(1)
The Psychology of Stages	75	(8)
Time Analysis	83	(4)
Support and Resistance	87	(9)
Trends	96	(7)
Volume	103	(11)
Moving Averages	114	(12)
Making Money	126	(7)
SECTION TWO METHODS AND TACTICS
Chapter 6 Favorite Indicators	133	(30)
Relative Strength Index	133	(7)
Arms Index	140	(6)
The Directional Indicator	146	(8)
The Stochastic Play	154	(9)
Chapter 7 Moving Average Plays and Strategy	163	(14)
The Simple Moving Average	164	(1)
Psychology of the Simple Moving Average	165	(1)
Strategy: The Moving Average Signal Cross	166	(5)
Placing Stops for the Moving Average Signal Cross	171	(1)
Moving Average Convergence/Divergence and Risk Management	172	(5)
Chapter 8 The Momentum Approach	177	(10)
News Dissemination	177	(1)
Spread Differential of Levels	178	(6)
Relative Change	184	(2)
Tight Levels	186	(1)
Chapter 9 The Tape	187	(8)
Read the Open	188	(1)
A Live Read	189	(2)
Volume/Velocity Relationships	191	(2)
Picture the Moment	193	(2)
Chapter 10 Trading Volatility	195	(12)
Parabolic Plays	195	(4)
Participating versus Anticipating	199	(1)
Openings and Gap Methods	200	(2)
Price/Volume Methods for Trading Volatility	202	(2)
Averaging Down or Averaging In	204	(3)
Chapter 11 Listed Rules and Strategies	207	(16)
Walking the Book	208	(1)
Wide Variation Markets	209	(2)
The Specialist	211	(1)
Raw Interpretation	212	(1)
Strategy	213	(1)
Other Relevant Rules and Strategies	213	(2)
How Specialists Actually Get In	215	(4)
Archipelago Exchange	219	(4)
Chapter 12 Trading Financial Futures	223	(26)
E-Mini Mechanics	225	(2)
Contract Size	227	(4)
Finding a Worthy Benchmark	231	(2)
What to Trade	233	(2)
Cash/Futures Relationship	235	(1)
Application of E-Minis	236	(13)
Chapter 13 Systems Trading	249	(18)
Words of Caution	249	(2)
Systems Trading and Back-Testing Engines	251	(3)
By the Numbers	254	(4)
The Perils of Curve-Fitting	258	(2)
Advanced Systems Trading	260	(7)
Chapter 14 Pairs Trading	267	(20)
Implementation of Fundamental Pairs Trading	268	(3)
Fundamental Pairs Matrix and Examples	271	(6)
Pairs Trading-a Technical Approach	277	(10)
Chapter 15 Seasonal Trading and Tax Loss Selling	287	(16)
Tax Loss Selling (TLS)	289	(1)
Accomplices in Tax Loss Selling	290	(3)
Search Criteria for Trading Candidates	293	(3)
Benefiting from Tax Loss Selling	296	(4)
When to Sell: The Time Stop	300	(3)
Chapter 16 Risk Management Strategies	303	(14)
Time Stops	307	(1)
Acknowledge Uncertainty	308	(1)
Market Myths	309	(3)
Your Trading Business	312	(1)
Gaining Expertise in Your Trading Business	313	(1)
The Jerry Maguire Report of Wall Street	313	(4)
Appendix Interviews	317	(14)
Bibliography	331	(4)
Index	335