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HIGH PROBABILITY TRADING STRATEGIES FOR ANY MARKET AND ANY TIME FRAME

Trading decisions are based on key information and on having the key information quickly and clearly available. On the charts in this book, swing highs and lows are often labeled with an arrow pointing to the high or low, as shown on the chart in Figure 4.1. These are called date labels in the Dynamic Trader software. The user has a choice of what information to include with the labels, such as the date, time (if intraday data), price change, percentage change, number of trading bars or calendar days, and the rate-ofchange (ROC). The Dynamic Trader software automatically calculates the price change, percentage change, number of trading bars or calendar days, and the ROC from the last date label, so the user may have a lot of information included with the label. It is helpful if your trading software is able to at least label the date/time and price of swing highs and lows on any chart. In Figure 4.1, the ES made an advance of 120.25 points from 1406.75 to 1527.00. The low and high are labeled on the chart and the range of the advance is shown in the top label. The range of 120.25 is proportioned by the four key ratios with the results subtracted from the high price to arrive at the four retracement levels. Most trading software will have a retracement function. If yours doesn’t, your trading software is probably not fully functioning or it is not designed for professional traders, and you need new trading software. Your trading software should allow you to enter any ratio you choose and should allow you to choose to make the retracements by either the range of price (highs and lows of the bars), as shown on the chart, or by closing prices. Figure 4.2 is the Price Retracement Ratios menu from my Dynamic Trader program. The menu includes all of the possible options to choose ratios and how they are displayed and labeled, including the thickness and color of each line. Your trading software should at least give you the ability to choose any ratios to include for retracements, including ratios greater than one. As you will see later in this chapter, ratios greater than one are a key component of the Dynamic Price Strategy. Because internal retracements are always less than 100%, they are used to help identify price targets for corrections. Why is it helpful to know the key retracement price levels for any market we trade? Most corrections in every actively traded market and time

FIGURE 4.2 Price Retracement Menu

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(wiley trading) robert c miner high probability trading strategies entry to exit tactics for the for  

(wiley trading) robert c miner high probability trading strategies entry to exit tactics for the for  

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