Table of Contents
Title Page
Copyright Page
Dedication
Foreword
Preface
WHAT YOU WILL FIND IN THE BOOK
WHAT YOU WILL FIND ON THE WEB SITE
DISCLAIMER
AS YOU BEGIN
Acknowledgements
CHAPTER 1 - The Search for a Universal Market Law
COMPLETE CHAOS OR HIDDEN ORDER?
WHEN MY INTEREST IN TRADING BEGAN
A SCIENTIFIC ANTIDOTE TO ARBITRARY MARKET PREDICTIONS
FIRST STEPS: BECOMING AN EASYLANGUAGE SYSTEM DEVELOPER
THE TREND: FOE OR FRIEND?
THE FUNDAMENTAL APPROACH
THE DREAM OF A UNIVERSAL EARLY-TREND INDICATOR
COULD THE LAWS OF NATURAL SCIENCES ALSO GOVERN THE FINANCIAL MARKETS?
THE BIRTH OF ABLETREND
CHAPTER 2 - Advances in Market Trend Analysis
WHAT IS A TREND?
THE SETUP OF A TREND
MATURITY OF A TREND
DRAWING TRENDLINES
SUPPORT AND RESISTANCE
THE MARKET DEFINES SUPPORT AND RESISTANCE
HOW COMMON METHODS DEFINE SUPPORT/RESI STANCE LEVELS
HOW ABLETREND DEFINES SUPPORT AND RESISTANCE LEVELS
ABLETREND INDICATORS
OTHER TREND-FOLLOWING INDICATORS
MARKET INDICATIONS
THREE RULES FOR FOLLOWING TRENDS
THE GOLDEN REGION OF ENTRY: THE SWEET SPOT
TIME, PRICE, FORECASTS, PREDICTIONS, AND TARGETS
CYCLES AND WAVES
SUMMARY
CHAPTER 3 - Four Elements of Trading Success
PROFITABLE TRADING SYSTEMS AND METHODS
ADEQUATE CAPITALIZATION
MONEY MANAGEMENT STRATEGY
DISCIPLINE OR A WINNING TRADING PSYCHOLOGY
CONCLUSION
CHAPTER 4 - Essential Philosophy of Trend Trading
WISDOM OF THE TAO
TRADING IS A BUSINESS
ONLY TREND FOLLOWING WORKS
DON’T TRADE AGAINST THE MARKET
WHICH MARKET IS THE MOST TRADABLE AND WHY?
WHY VOTING SYSTEMS DO NOT WORK
WHY $500 OR 5 PERCENT STOPS DO NOT WORK
WHY THE WINNING RATE IS NOT IMPORTANT
WHY YOU CANNOT PICK A TOP OR BOTTOM
HOW TO LET PROFITS RUN
HOW TO CUT LOSSES SHORT
GO THE OPPOSITE WAY OF THE MAJORITY
TRADE ONLY THE RISK CAPITAL THAT YOU CAN AFFORD TO LOSE
IF YOU WANT TO WIN, THINK ABOUT LOSS
PLACE YOURSELF BEYOND THE POSSIBILITY OF DEFEAT
TRADING IS THE MOST DIFFICULT THING IN THE WORLD
CONCLUSION
CHAPTER 5 - The Applications
WHAT IS THE “WINNING FRAMEWORK” FOR A TRADING SYSTEM?
STM METHOD—BUY ON BLUE AND SELL ON RED
EVALUATE A TRADING SYSTEM: BACK-TESTING
FOUR IMPORTANT ISSUES FOR PARAMETER SETTINGS
ABLETREND2 STOPS
THE SWEET SPOT—GOLDEN REGION OF ENTRY
FINDING THE CHARACTER OF A PARTICULAR MARKET
TREND TIME FRAMES
AVOID CHOPPY MARKETS
BREAKOUT OR RETRACEMENT
DAY TRADING VERSUS SWING TRADING
IN CONCLUSION: THE FIVE F’S OF DESIGNING A TRADING SYSTEM
CHAPTER 6 - Examples of Trend Analysis
STOCKS
COMMODITIES
THE E-MINIS
FOREX
BONDS
CONCLUSION
CHAPTER 7 - Advanced Abletrend Tools
VIRTUAL PAPER TRADING (VPT)
HISTORICAL FORWARD TESTING
AUTOSCAN
THE PERCENT CHARTS
THE GUIDANCE CHARTS
STOCK SEARCH ENGINE—STOCK PICKS
VISUAL OR CHART TRADING
AUTOMATED TRADING ORDERS
OPTIONS TRADING
SPREAD TRADING
PORTFOLIO TRADING
SUMMARY
APPENDIX A - Interviews with Abletrend Users
APPENDIX B - Quick Reference for STM
References
About the Authors
Index