Swing Trading Plan » Point

Nma Swing Trading System – A Simple Pivot Point Trading System

James Johnson — Wed, 08 Dec 2010 01:42:11 +0000

This is a very simple pivot point (PP) trading system based on three period pivot point moving average (PPMA) and the one period pivot point moving average which is much better than most of the moving average based systems as it uses pivot points (PPs) in calculating the moving averages. Nma Swing Trading System

A PP is calculated by adding the High (H), Low (L) and the Close (C) of a session with three. A three period PPMA is calculated by adding the pivot points in the last three periods. One period pivot point moving average is simply the pivot point of the preceding session.

A PP is a much better measure of the price action as it takes into account the range as well as the close of the proceeding sessions as compared to only the close of the proceeding sessions in case of the moving averages. This simple trading system can be used on the 5 minutes charts and above.

When the two MAs cross each other, this gives a trading signal that needs to be confirmed with a bullish or bearish candlestick pattern. This feature of using two MAs gives you an early warning system that helps you in telling you about the conditional price change. How do you determine the strength of the trend? A trend can be easily determined by drawing a simple trendline. Now when the slope of the two MAs are both pointing in the same direction as that of the trend, means that the trend is going strong.

Furthermore when the two MAs are equidistant from each other with a good degree of separation between the two, this indicates a steady trending condition. When the shorter term one period MA moves too far away from the longer term pivot point moving average this means an overbought condition in the market and when a crossover takes place, it means a conditional price change that needs to be confirmed with a candlestick pattern. Nma Swing Trading System

In trading timing is everything. It is not enough to know the direction of the trend rather you should also be able to anticipate when to enter the market. Many traders can correctly anticipate the direction of the trend but make a premature entry. They get stopped out due to the premature entry but feel frustrated to see the market launch in the predicted direction again.

This method of combing a pivot point analysis with a moving average approach will help you develop a mechanical and systematic approach to your trading. Now for a trading signal to develop, you need a conditional change in the price that is depicted by the crossover and a further confirmation from the market by closing above or below the MA.

In case of a bullish trend higher highs and the higher lows are verified by pivot point moving average. Similarly in case of a bearish trend, lower highs and lower lows are formed with each close below the open verified by the pivot point moving average.

Now, it all depends on you whether you are a day trader, swing trader of a position trader. This will tell you the best timeframe that you need to use in order to enter the trend. If you are a day trader simply calculate the range of the last few days and calculate the average range for the last few days. Suppose you calculate it to be 110 pips. With this simple pivot point trading system, you will be able to capture 60% of this range as a profit or in other words 66 pips. Nma Swing Trading System

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The Definitive Guide To Swing Trading Stocks Pdf – Point And Figure System That Identifies Massive Market Moves To Help Capture 1000s of Pips!

James Johnson — Mon, 06 Dec 2010 23:40:15 +0000

by wickeddollz

The Definitive Guide To Swing Trading Stocks Pdf

Point and figure charting represents the price action in a totally different, rather a ridiculously different manner, as compared to the most familiar bar and candlestick charting. Point and figure trading uses this point and figure chart in focusing exclusively on the price action. Now, point and figure (P&F) trading is somewhat similar to the familiar support and resistance breakout trading. The Definitive Guide To Swing Trading Stocks Pdf

P&F charts are available on almost all the charting platforms. P&F Charts focus exclusively on the price action excluding other familiar elements like the time, volume and open or closing price of the currency pair or for that matter the security.

P&F trading is very well suited to the currency market as it solely focuses on the price action, the most important thing in technical analysis. What this means is that when you use the P&F Chart it removes the clutter from the chart and presents clear evidence of the support/resistance, trend and the breakouts.

A Point and Figure (P&F) Chart comprises of columns that are represented by Xs and Os. X means the price has risen in the column while an O means that a decline in the price has taken place. When the price reverses direction, another column is added.

Now as mentioned above, time, volume,open and closing prices are all removed on the P&F chart and only when the price increases by a fixed increment, the column moves in the chart. Now, this fixed small increment is known as the BOX SIZE.

Box Size is the minimum amount the prize is supposed to move before another box in the column is created. Suppose, you set the box size to 10 pips which is the usual practice among the Forex traders though you can choose any settings of your own.

Now, the column of X means rising prices. Suppose there are 10 boxes in the X column, this means that the price has continuously moved in increments of 10 pips for the 10 boxes to be added to the column. Now, you need to note this fact that there is no mention of the time it took for the 10 boxes to be formed as well as the open or the closing price. The Definitive Guide To Swing Trading Stocks Pdf

In order to add another X to the already 10 Xs that are present, the price should move 10 pips above the last box. On the other hand, suppose the price instead of increasing by 10 pips declines by 10 pips. Now, he second most important variable that is very important for the P&F chart is the Reversal Amount.

So, price has to reverse by this amount before a new column will be added to the chart. Suppose, you have set the reversal amount to 3 boxes or 30 pips. Now, instead of adding an X to the existing X column a new column will be added with an O if the price declines by 30 pips. If the price further declines by another 10 pips, another O will be added to the column.

Whatever, P&F Charts are ideal for trading support and resistance breakouts. Eric has created an excellent Forex Point and Figure System that you can use to capture massive moves in the market. This Forex Point and Figure System works on the MT4 Platform. You can use this P&F Trading system to identify trends before everyone else and capture massive pips capturing the market move before everyone else. You can also use the P&F Trading System to set tight stop loss. Whatever, you can test this Forex Point and Figure System RISK FREE for 60 days on your demo account! The Definitive Guide To Swing Trading Stocks Pdf

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The Point & Figure Method of Anticipating Stock Price Movements

James Johnson — Fri, 09 Apr 2010 08:02:33 +0000

Product Description
In this book Victor de Villiers shows you how to successfully forecast market prices and determine what action should be taken. The Point & Figure Method is divided into ten chapters, containing charts, pattern examples, and a wealth of historical information. A must-read for those who want a true understanding of the point and figure method…. More >>

The Point & Figure Method of Anticipating Stock Price Movements

Swing Trading – a Simple 4 Point Method for Big Profits

James Johnson — Sat, 13 Mar 2010 12:01:13 +0000

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Swing trading within the primary trend can be highly profitable and offer low risk.

Here we are going to look at a simple 4 point system for swing trading that any forex trader can use novice or pro.

Its simple effective and can be highly profitable.

You can look and test this method on any free chart service on the web and a good one is futuresource.com

You need to know the logic of support, resistance, Bollinger bands and stochastics and thatâ??s it.

If you donâ??t simply check our other articles.

Most swing trades done using this method last just a few days, but you will find you can bank some fantastic profits.

Step 1

Look for important points of resistance within the trend.

This can be done by simply looking at support or resistance points on both the daily and weekly charts.

Step 2

Look for a sharp move toward these levels, with price volatility high and with the top of the Bollinger band near the highs or lows.

Now you have spotted the opportunity, itâ??s time to look for entry levels.

You Need Confirmation

As we all know trading into support or resistance can be successful.

Of course in many instances support and resistance give way, so you need a method to time your entry.

Look for price momentum that is carrying price action toward to support and resistance to falter or reverse

Step 3

There is no better timing indicator than the stochastic â?? which measures short-term price strength or weakness.

When prices approach support or resistance the stochastic lines should be pointing in up (into resistance) or (down into support) wait until you see the following:

The stochastic lines to cross and show short-term momentum has changed.

With a test of resistance they will cross with bearish divergence and with a test of support they will cross to upside with bullish divergence.

This is the key to take your position confirming that price momentum has run out of steam and that resistance or support will hold.

Step 4

You need a target to take profits and this can be provided by the middle of the Bollinger band and or support or resistance levels.

Note

1. Only trade this method into significant support or resistance.

2. Look for a quick high volatility move

3. Never trade without getting the confirmation of the stochastic

4. Target â?? Your better to liquidate your trade as soon as target is hit, do not trail stops.

Thatâ??s it.

It sounds simple but I have been using this method for 25 years and it is one of the most effective ways of isolating high return and low risk trades.

Swing Trading Plan » Point

Nma Swing Trading System – A Simple Pivot Point Trading System

The Definitive Guide To Swing Trading Stocks Pdf – Point And Figure System That Identifies Massive Market Moves To Help Capture 1000s of Pips!

The Point & Figure Method of Anticipating Stock Price Movements

Swing Trading – a Simple 4 Point Method for Big Profits

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