Bestselling trading author Guy Cohen introduces the OVI indicator to stock trading
More fortunes are made from trading stocks than any other financial instrument, and these windfalls are available to anyone who has access to the right information.
Presenting the methods used by the best traders in the market, The Insider Edge: How to Follow the Insiders for Windfall Profits uses options transaction data to reveal what "informed traders" are doing, and how anyone can take advantage of these techniques.
Whether the markets are choppy or trending, it always pays to wait for a clear opportunity. Any good trader knows that they need an Edge to excel, and this book demonstrates how the combination of specific chart patterns, author Guy Cohen's proprietary OVI indicator, and a robust trading plan, when combined, will deliver success.
In The Insider Edge, Guy Cohen reveals:
How you can profit from options without having to trade or even understand them!
Why the smart money often gravitates to the options markets.
How options transactions can often reveal the direction of the stock price.
How you can trade using information typically reserved for the pros.
A trading plan the delivers maximum safety and windfall profits.
How to use his proprietary OVI indicator online for free, so you can start to follow the insiders.
The author emphasises that The Insider Edge is for anyone who wants to trade stocks. No options knowledge is required to benefit from this book. His method involves observing what the smart options traders are doing, and then following them. This is what gives you The Insider Edge.
An innovator in financial trading, Guy Cohen is the creator and originator of the unique OVI Indicator, FlagTrader, and OptionEasy, among other trading tools. Guy is also an established bestselling author, commentator, and entertaining speaker on trading and the financial markets. Guy specializes in trading stocks and options, with his hallmark user-friendly approach and liberal use of illustrations. His published work is complemented by pioneering breakthroughs in the areas of trading and technical indicators, especially the OVI. With Guy's market-tested innovations, you will find proven techniques to succeed, complemented by industry-leading customer service. Guy earned an MBA in finance from Cass Business School, City University London.
Preface vii Acknowledgments xiii Introduction 1 March 8, 2008 3 March 2008 5 March 2009 6 April 26, 2010 7 March 2011 8 Summer 2011 9 September 7, 2011 10 Informed Trading and the OVI 11 The Insider s Rationale 12 Trading Breakouts 13 CHAPTER 1 The Most Popular Chart Patterns: Why Chart Patterns Are So Important 15 Price Bars 16 Support and Resistance 20 Trends 30 Flag Patterns and Consolidations 33 Head and Shoulders 43 Indicators 48 Learning Points 51 CHAPTER 2 The OVI: Guide to the Insiders: Introduction to the OVI 53 What Is the OVI? 59 When to Use the OVI and When Not to Use It 64 The OVI with Stocks 78 Learning Points 105 CHAPTER 3 Flags and Channel Breakouts in Detail: Focusing on the Patterns That Work Best with the OVI 109 Bull Flags 110 Bear Flags 118 Flags with a Strong OVI Signal 127 Channel Breakouts 128 Setting the First Profit Target 134 Learning Points 146 CHAPTER 4 The Trading Plan: The Complete Trading Plan 151 Order Types 153 The Trading Plan 155 Learning Points 214 CHAPTER 5 Putting It All Together 217 Summary of the OVI Trading Method 219 A Few More Examples 221 Action Steps 226 Summary of Tools for You to Use 239 Take the Next Step Now! 240 About the Author 241 Index 243