Trading entry plan:mrtq13

Below is a simple but important road map on how to analyse and enter a stock that I created. You can call it checklist....I like the process.........I see many of us base their TA analysis only on buy/sell signals!! That's a strange step.........Because a buy signal in downtrend has no meaning and will fail in 90% of the cases.............In uptrend,trades work fine!!

Once I was in trading chat room. There one russian trader was saying that he doesn't take any trading signal unless the price has broken the trendline after the signal is generated........I loved that idea and am trying to create a trading system with trendline breaking idea...........

The map below will have more branches. Say,for example,pivot high-low has certain patterns that are important in uptrend.We need to define which patterns to be taken and which not......etc........



There are also maps on exit,hold etc.........Say,for example,in downtrend,one should stand aside and not trade at all..........But what do we mean by downtrend!!!!!!!

ALWAYS DEFINE THE TREND FIRST BEFORE YOU GO FOR BUY/SELL........

Ummmmmmmmmm............

I posted the above map for a purpose...........It's a disciplined approach to trading........In fact,it is a real way of TA trading.......

In no book,you will find disciplined approaches to TA,because firstly,there is commercial reason. They will write on same the shits several times and publish them in several book for earning money. Fuck these shits....Have a look at the book,"Master Swing Trader". That book sucks. None can trade reading that fucking book,though it is a well-known book in TA world.

Secondly,because,if all topic is really illustrated,then the volume of books will increase.........Anyway,cut the shit!! Let's get to the buisness..............

I always go by Pivot High-Low.........Because,only by that we can determine uptrend-downtrend quickly,detect all types of patterns.................But the process of pivot high-low is so vast that only one single post will not be enough to describe it all........But for giving you some hints on pivot high-low,I am posting on my systems' pivots below..........

The rule of trend is an uptrending stock must have higher high and higher lows When you will understand this,you will feel charmed. Because you will then be able detect stocks moves.........

Below image is an example of the road map for entry that I uploaded above.........Now this road map can again be divided into several sections like I said above...........For example,all trades/entry below will be based on pullback trading......Note that in its uptrend,Yahoo making small pullbacks/dips........And we are supposed to enter them......This is swing trading!!!

Note that we stand aside when the stock pullbacks..........

For trend determination,MA is slow. That is why,I try to avoid them........

Also,note a band like indicator is used to use as a trendline for short term moves.........

There are two trading styles that can be used in an uptrending stock :

1. Pullback trading.
2. Breakout trading.............

Stock making Lower Low and lower highs are in downtrend..............We are not supposed to trade this downtrend. It is like falling knife. You try to catch the knife,your hand will cut..........

See how trendline is broken before the stock goes high........This can be called reversal trading.........Also note the reversal double bottom pattern..........Cool!!!

We connect the Higher Lows in uptrend and Lower High in downtrend with trendline. That is how we use trendline to determine trends and trendline breaks...........See the image below...........



A long way to go yet,my friend..............

Take care!!!
Happy trading!!