Category: Trading

  • Range Expansion

    Range Expansion

    After a long fall and first topside range expansion (arrow) the following retracement uf US500 is used for a contrarian long position. The Low of the range is used as stop-loss (plus some 2 or 3 points). In this case a 10 point risk is rewarded with 25 points of immediate reward (plus a lot […]

  • Stop Loss – Why to use one?

    Adding a stop to a position preserves equity in case a trade goes wrong. And it can go wrong. But then price action may turn around and pursue its original course. Such losses can lead traders to make trades without adding stops to their position or to add stops that are generously far away to […]

  • Wallstreet Rebound

    Wallstreet Rebound

    Bullish price action after a rebound on the bottom of a Keltner Chanel. Once the bullish bars cross over the 9ema (red line) the bullish trend will continue when bullish bars following bearish bars will exceed the tops of their previous bars. A stop/loss can be placed 20 points below the last bearish bar’s low. […]

  • Coping with Trading Losses

    The hardest part in trading is dealing with losses. They need to be embraced and appreciated as a chance to keep drawdowns to a minimum. After suffering losses in the past I have found a way to keep them small. First Rule: Whenever I suffer a loss that is considerable, I will step away from […]

  • Keltner Chanel Reversal

    Professional traders love their Keltner Chanels because it provides great trading opportunities for both directional and swing trading. Here is an example for a way to trade a midday swing. After a strong downtrend can be observed with prices heavily moving down and outside of the chanel, the candles return back into the chanel. Once […]

  • Double Bottom

    Trend reversals often require a comfirmation when reaching top or bottom. When a previous retest of a previous bottom holds the chart formation is called a double bottom and it may lead to a bullish uptrend. To verify the double bottom they should both be near significant daily support 1 or daily support 2 lines. […]

  • Green Hammer

    The green hammer is a bullish chart pattern that can often be observed when trends change on a short term perspective. It is important in combination with another trend changing factor such as a bunce off of an important support level or crossover move. It is an easy to spot shape that resemples the look […]