Trading the Measured Move: A Path to Trading Success in a World of Algos and High Frequency Trading (Wiley Trading)
By: David Halsey (author)Hardback
1 - 2 weeks availability
A timely guide to profiting in markets dominated by high frequency trading and other computer driven strategies Strategies employing complex computer algorithms, and often utilizing high frequency trading tactics, have placed individual traders at a significant disadvantage in today's financial markets. It's been estimated that high-frequency traders one form of computerized trading accounts for more than half of each day's total equity market trades. In this environment, individual traders need to learn new techniques that can help them navigate modern markets and avoid being whipsawed by larger, institutional players. Trading the Measured Move offers 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. When properly applied, it allows traders to gauge market sentiment, recognize institutional participation at specific support and resistance levels, and differentiate between short-term and long-term trades at various price points in the market.
* Provides guidance for individual traders who fear they can't compete in today's high-frequency dominated markets * Outlines specific trade set ups, including opening gap strategies, breakouts and failed breakout strategies, range trading strategies, and pivot trading strategies * Reveals how to escape institutional strategies designed to profit from slower-moving market participants Engaging and informative, Trading the Measured Move will provide you with a new perspective, and new strategies, to successfully navigate today's computer driven financial markets
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.
Preface xiii Acknowledgments xvii CHAPTER 1 Today s Trading Environment 1 Descent of the Pit and Ascent of the Screen 1 Players on the Field 2 The Algo Brothers 4 Where Are You? 7 CHAPTER 2 Inside the Hidden Market 9 Deep Roots 9 Fibonacci Basics 11 Fibs Make the Moves 15 Why Do Fibs Work? 19 Fibs in the Real World 21 In Summary 26 CHAPTER 3 Drawing a Road Map 27 Finding Direction 27 A Mountain Range of Price 28 Obstacles in the Road: Pivot Points 32 Navigating Trends 35 Long and Winding Roads 37 CHAPTER 4 More Tools for Trading Power 39 Filling the Toolbox 39 Watching the Clock (and the Calendar) 39 Tick Tock 43 The Tape and the DOM 46 The DOM (Depth of Market) 49 A Full Toolkit 51 CHAPTER 5 The 90 Percent Factor Executing Your Trade 53 Where the Rubber Meets the Road 53 Priorities and Job One 53 What s the Risk, What s the Reward? 55 A Brief Pit Stop 59 Preparing the DOM 60 Crossing the Starting Line 61 Running Off the Road 65 When Multiple Contracts Just Aren t Possible 66 Why 90 Percent? 68 CHAPTER 6 Three Types of Trade Setups 69 The Traditional 50 Percent Measured Move 69 The Extension 50 Percent Measured Move 74 The 61.8 Percent Failure 78 Why Is This Important to Your Trading? 82 CHAPTER 7 Using Multiple Time Frames to Trade 83 Time Frames and Russian Dolls 83 The Path of Least Resistance 84 Trading the Trend 85 What Time Frame Should We Look At? 86 Why Is This Important to Your Trading? 91 CHAPTER 8 Three Entry Strategies for Retracements 93 The Goal 93 The Three Entry Strategies 95 The Progression of Entries 101 Why Is This Important to Your Trading? 101 CHAPTER 9 The Seasonality of Markets and the Best Times to Trade 103 The Big Picture 103 A Money Manager s Year 105 The Days 107 The Hours (Best and Worst Times to Trade) 109 The Worst Times to Trade 110 The Typical Money Manager 111 Why Is This Important to Your Trading? 111 CHAPTER 10 Tools for the NYSE 113 Lagging versus Leading Indicators 113 Tools for the NYSE 114 Using All the Tools Together 121 Why Is This Important to Your Trading? 122 CHAPTER 11 Tick Extremes and Divergences 123 The Types of Tick Extremes 123 Tick Divergences 124 Why Is This Important to Your Trading? 129 CHAPTER 12 Profi ting from Gap Fills 135 What Is a Gap? 135 The Types of Gap Fill Scenarios 136 Gap Fills to Avoid 136 Gap Fill Percentages 137 The Gap Fill Workfl ow and Filter 140 Entries 141 When Gaps Don t Fill 142 What to Do? 143 Why Is This Important to Your Trading? 144 CHAPTER 13 How to Manage Positions and Take Profits 147 The Rule for Measured Moves 147 The Distance Formula 148 Trailing a Series of Measured Moves 150 After the Confirmation of Trend 152 Using the 23 Percent Profit Target: Take Profit on the Time Frame You Entered the Trade 152 Why Is This Important to Your Trading? 155 CHAPTER 14 Risk Management (Advanced Trade Management) 157 Bob the Trader 157 Curtis the Contractor 159 Risk per Trade 160 How Many Futures Contracts Should I Trade? 160 Stop Placement 161 The Free Trade 162 The Reduced-Risk Trade 162 Why Scale Out? 162 Pick an Instrument and Focus on It 163 Trading the News Is Gambling 163 Why Is This Important to Your Trading? 163 CHAPTER 15 The Inner Trader 165 The Emotions of a Trader 165 Mentality 165 Money Management 166 Emotions 167 How Long Does It Take for a New Trader to Trade Well? 168 Attitude 169 Trading Well versus Trading for Profit and Emotional Capital 170 The Phases of Measured Moves 172 The Series of Measured Moves 174 Basic Traditional Measured Moves 174 The Progression of Measured Moves 178 Why Is This Important to Your Trading? 178 CHAPTER 16 The Trading Plan 179 Keeping Yourself Safe with Statistical- Based Rules 179 The Four Legs of a Trading Strategy 179 Why Trading Rules 182 General Trading Account Rules 183 Gap Fill Trading Rules 185 American (NYSE) Session Trading Rules 186 European (Euro) Session Trading Rules 188 Setups 189 A Trading Journal 189 Why Is This Important to Your Trading? 190 Bringing It all Together 190 About the Author 193 Index 195
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- ID: 9781118251836
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