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9781118251836

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

by
  • ISBN13:

    9781118251836

  • ISBN10:

    1118251830

  • Edition: 1st
  • Format: Hardcover
  • Copyright: 2013-12-23
  • Publisher: Wiley

Note: Supplemental materials are not guaranteed with Rental or Used book purchases.

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Supplemental Materials

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Summary

Mastering the Measured Move provides traders with a blueprint for profiting from the price waves created by computer-driven algorithmic and high-frequency trading strategies. The core of author David Halsey's approach is a novel application of Fibonnaci retracements, which he uses to set price targets and low-risk entry points. The approach allows traders to guage market sentiment, recognize institutional participation at specific support and resistance levels, and to differentiate between short-term and long-term trades at various price points in the market. The book offers specific trading set ups including opening gap strategies; breakouts and failed breakout strategies; range trading strategies; and pivot trading strategies. The author's strategies often fly in the face of conventional technical analysis and, in so doing, allow individual traders to escape institutional strategies designed to profit from slower-moving market participants. In short, Mastering the Measured Move will provide traders with a new perspective and new strategies to successfully navigate today's computer driven financial markets.

Author Biography

DAVID HALSEY is founder of the website EminiAddict.com, which provides trader education and market commentary. His focus is day trading and swing trading stock index futures utilizing techniques designed to stay on the right side of institutional order flow and identify short-term setups. Halsey provides a daily market analysis, predictions, and an interactive forum for his subscribers. His videos are utilized by several brokerage firms and disseminated to their clients.

Table of Contents

Preface

This Book’s Target Audience

Fibs Make the Moves

Acknowledgments

Chapter 1 Today’s Trading Environment
Descent of the Pit and Ascent of the Screen

Players on the Field

The Algo Brothers

Where Are You?

Chapter 2 Inside the Hidden Market

Deep Roots

Beyond 1.618

Fibonacci Basics

Fibs Make the Moves

Why Do Fibs Work?

Fibs in the Real World

In Summary

Chapter 3 Drawing a Road Map
Finding Direction

A Mountain Range of Price

Obstacles in the Road: Pivot Points

Navigating Trends

Long and Winding Roads

Chapter 4 More Tools for Trading Power
Filling the Toolbox

Watching the Clock (and the Calendar)

Tick Tock

The Tape and the DOM

The DOM (Depth of Market)

A Full Toolkit

Chapter 5 The 90% Factor - Executing Your Trade
Where the Rubber Meets the Road

Priorities and Job One

What’s the Risk, What’s the Reward?

A Brief Pit Stop

Preparing the DOM

Crossing the Starting Line

Running Off the Road

When Multiple Contracts Just Aren’t Possible

Why 90%?

Chapter 6 Three Types of Trade Setups

The Traditional 50% Measured Move

A Series of Measured Moves

Which Traditional Measured Moves Not to Trust

The Extension 50% Measured Move

The Extension 50% in a Series

Which Extensions Not to Trust

The 61.8% Failure

What 61.8% Failures Not to Trust

The Order of the Trade

Chapter 7 Using Multiple Timeframes to Trade

Timeframes and Russian Dolls

The Path of Least Resistance

Trading the Trend

Why Do Markets Continue to Make New Highs?

Why Do Markets Continue to Make New Lows?

A New Concept

What Timeframe Should We Look At?

Types of Multiple Timeframes

The Weekly Trend

The Daily Measured Moves

The 15 Minute Trend

The Micro Trend

Why Is This Important to Your Trading?

Chapter 8 Three Entry Strategies for Retracements

The Goal

Front Runs and First Targets

The Three Entry Strategies

The First Test

How to Trade a First Test

The Front Run of the Second Test

How to Trade the Front Run of the Second Test

The Trend Break and Next Measured Move

How to Trade the Trend Break

The Progression of Entries

Why Is This Important to Your Trading?

Chapter 9 The Seasonality of Markets and the Best Times to Trade

The Big Picture

The Months

Studying the Past

A  Money Manager’s Year

The Summer

The Fall

The Winter and Spring

The Days

The Hours (The Best and Worst Times to Trade)

The Worst Times to Trade

The Typical Money Manager

Why Is This Important to Your Trading?

Chapter 10 Tools for the NYSE

Lagging versus Leading Indicators

Tools for the NYSE

Bank

How to Use Bank

Breadth

How to Use Breadth

The Tick

Tick Hooks

Time and Sales

How to Trade Time and Sales

Trade the Trend

Using All the Tools Together

Chapter 11 Tick Extremes and Divergences

The Types of Tick Extremes

The Old Way

The New Way

Ticks That Signal a Reversal

Tick Divergences

How to Use a Divergence

What Happens If the Trend Breaks?

Why Is This Important to Your Trading?

Chapter 12 Profiting from Gap Fills

What Is a Gap?

In What Instruments Do Gap Fills Exist?

The Types of Gap Fill Scenarios

Gap Fills to Avoid

Options Expiration Fridays

Rollover Thursday and the Day After

The First Trading Day of the New Quarter

10 Point Gap-and-go Levels

No Trade Zones

Gap Fill Percentages

Tools for the Gap Fill

The Traditional Trader’s Way

The Conservative Way

The Gap Fill Workflow and Filter

Entries

Which Entry?

When Gaps Don’t Fill

What to Do?

Why Is This Important to Your Trading?

Chapter 13 How to Manage Positions and Take Profits

The Rule for Measured Moves

The Distance Formula

Trailing a Series of Measured Moves

After the Confirmation of Trend

Using the -23% Profit Target: Take Profit on the Time Frame You Entered the Trade

Why Is This Important to Your Trading?

Chapter 14 Risk Management (Advanced Trade Management)

Bob the Trader

Curtis the Contractor

Risk per Trade

How Many Futures Contracts Should I Trade?

Stop Placement

The Free Trade

The Reduced Risk Trade

Why Scale Out?

Pick an Instrument and Focus on It

Trading the News Is Gambling

Chapter 15 The Inner Trader
The Emotions of a Trader

Mentality

Money Management

Emotions

How Long Does it Take for a New Trader to Trade Well?

Attitude

Are You Proactive or Reactive?

Trading Well versus Trading for Profit and Emotional Capital

Chapter 16 The Trading Plan
Keeping Yourself Safe with Statistic-Based Rules

The Four Legs of a Trading Strategy

Leg 1: Money Management

Leg 2: Entry Rules

Leg 3: Profit Taking Rules

Leg 4: Statistical Based Trading Rules

Why Trading Rules

General Trading Account Rules

Gap Fill Trading Rules

American (NYSE) Session Trading Rules

European (Euro) Session Trading Rules

Setups

Daily Setups

15 Minute Setups

Micro Setups

About the Author

Index

Supplemental Materials

What is included with this book?

The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.

The Used, Rental and eBook copies of this book are not guaranteed to include any supplemental materials. Typically, only the book itself is included. This is true even if the title states it includes any access cards, study guides, lab manuals, CDs, etc.

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