Stock Trading Course

The market moves in definite steps , and these steps can be isolated and studied , one at a time . Furthermore , these steps follow each other in a regular sequence , and you can definite and analyze this sequence , by each piece .

If the trading type can be understood that the market is manifesting at any given moment , we will be able to come up with the tools and techniques that do the best job for a specific market activity . Also, You'll also find, if we know which type of trading came before , which is here now , and the following trading, we'll have an advantage over other traders. We'll be able to choose the top tools, and we'll be prepared for the future . When it comes to trading, that is a big part of the battle.

Our experience as well as a technical analysis explained course has taught us that the trading definitions need to be very clear, otherwise our analysis quickly gets muddy and loses value . Definitions need to be those that can work with any market, and to any time-frame . These definitions need to be simple, as well as robust.

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In this special technical analysis explained series some articles in the future will discuss types of trading , and we will find that simple definitions combined with careful observations can lead us towards success.

A simple overview will be our starting point , so that you can see how things will fit into the big picture as we proceed . Then we'll look at a trend run in the market . After observing trends in the market, we'll look at how the time period analysis and Drummond Geometry tools combined will help us figure out where the trend will come from , and where it is likely to terminate . The monitoring tools will also be observed, both the envelope and 1-1 zones, fit in with the collection that is growing of observations that are practical and theory. And finally we'll suggest some rules for trading that may provide some help as you come up with a trading plan of your own .

Let's get going....

The market activity will be divided into two big divisions : markets in a trend and those in congestion. Congestion will be further divided into congestion entrance, congestion action, and congestion exit . We'll also add as the final market condition, trend reversal, giving us fiver different types of trading.

Trend definition is irrevocably attached with the position of the close of the bar vis-à-vis the Pldot . To the trend definition there isn't another element , although for various trends there is much to say about their characteristics . Trends are always defined by one rule: If on one side of the Pldot there are three closes , it is a trend . This rule is called the three close rule , and no trend can happen without this three-close-on-one-side-of-the-PLdot rule . It will never occur . The next topic in the series on Stock Trading Course Congestion Entrance will be the topic .

The market moves in definite steps , and the steps can be set apart and then studied, one at a time . You'll also find , these steps follow each other in a regular sequence , and you can definite and analyze this sequence , by each piece .

If we understand the "type of trading" that is manifested by the market at a particular moment, we can find techniques and even tools that do the best job for a specific market activity . Furthermore , if you know the type of previous trading , that which is happening now, and which is likely to follow , we will have a leg up on most other traders . We can always choose the best tools , and we will be armed for what is going to occur. This is often half the battle .

Our experience as well as a stock trading course teaches that the types of trading definitions must be totally clear , otherwise our analysis quickly gets muddy and loses value . We want definitions that can be applied to any market , at any time . Our definitions must be robust and simple .

In this stock trading course series types of trading will be discussed in future articles, and the combination of observations that are careful and definitions that are simple can help us reach success .

We will start with a simple overview , so you'll be able to get the big picture. Then we'll look at a trend run in the market . After observing trends in the market, we will see how the Drummond Geometry tools combined with time period analysis will enable us to find out where the origination of the trend will be, and where the end will be. The monitoring tools will also be observed, the envelope and the 1-1 zones , go along with practical observations and theory collections . And finally we'll show you some trading rules that can be helpful as you come up with a trading plan of your own .

Let's get our start ....

We divide all market activity into two major divisions : markets in a trend and those in congestion. We can divide up congestion further into congestion entrance, congestion action, and congestion exit . We'll also add as the final market condition, trend reversal, making five "types of trading" in all .

The definition of what a trend happens to be is attached irrevocably to the position of the close of the bar called the Pldot. To the trend definition there isn't another element , though there will be lots to say about the characteristics of various trends . A trend is always defined by this rule : If there are three closes on one side of the Pldot , the market is in a trend . This rule is called the three close rule , and no trend can happen without this three-close-on-one-side-of-the-PLdot rule . Never . The next topic in the series on Stock Trading Course we will talk about Congestion Entrance .

Traders love a good trend . One is wanted by everyone , one that's their own, and this is understandable, since a lot of money can be made in a good trend .

How should you trade a trend? There are a variety of tactics you can use . Some old traders say that trends are easy because any plan is workable. Because prices are always moving in one direction , even if you enter with a poor trade position , it makes no matter , because the trend will bail you out eventually. This maxim has a bit of truth , but many refinements can be brought into trend trading.

When it comes to market analysts, one thing they learn is that stock trading course how to recognize a trend as early in its existence as possible , and the Drummond Geometry definition of the trend , based on the Pldot and close relationship , lets us do that . You'll probably remember that the definition is three closes on one side of the Pldot defines a trend . When the third close occurs, you have a trend.

This happens to be significant because a trend's most lucrative and best part is often the earliest part , when it first gets going . After you recognize a trend the thing is to hang with it as long as it exists . If you are permitted by your trading situation, you want to add to your position by pyramiding , so that as the trend develops your profits also grow more rapidly .

Definitely getting on a trend and sticking with it is one of most lucrative parts of trading. If your education has taught you nothing else, you should have knowedge that your style of stock trading course trend formation is one building block that is important for every trading system.

All well and good, you say , but how is entry to a trend timed ? And how do you manage a trade in a trending market ?

Trends are all different , some are fast, some slow and others are old and some are young .

First let's look at a fresh trend . The market has been in congestion for some time , if you're a swing trader perhaps for days, or for some hours for day traders . The congestion and its parameters are very clear. Then suddenly there is a change in conditions , often being news driven. The market starts to move rapidly on one direction .

This is a situation for rapid action . Enter in the direction of the trend as soon as you can and hang on . The entry point is less important than you getting in it . Your move will end up lasting for hours or even days so it's better to get in as soon as possible ! You can buy into this trend as it breaks the congestion parameters or as the next bar goes up to the top of trading bands . If the trend is real and has new energy to it, for some time you probably won't see deep retracements !

This is a contrast to a trend that is mature and that has been around for some time. Can you still get in ? Yes, but if the energy is "mature" and starting to lose a bit of its oomph , your entry techniques should be more cautious . In this case you need to look for a trend pause , at the very least a retracement of the price to the midline. Check on your higher time period to make sure there is sufficient potential left in the trade , enough to make it worth getting involved .

If you are uncertain about these guidelines taking some time with a chart will provide you with more understanding. Most traders will benefit from taking a closer look at stock trading course in a good course, as they hone their entry and exit skills .

Entering and exciting congestions will be our next topic .

We speak here of congestion action trading . A market in congestion action is one that goes back and forth between congestion confines , between support as well as resistance ( or between the block level and dotted line in the terms of Drummond Geometry ). Within congestion this market action occurs, and when there is not a trend run. The level that was created by the preceding up trend's highest high is what is referred to as the Dotted Line, or the lowest low created by the preceding down trend . The first Block Level is the low of the first bar that closes on the opposite side of the PLdot in a uptrend , or in a down trend, the high of the first bar to close on the PLdot's other side .

Once you have a sufficient understanding of the theory, characteristics, and patterns of congestion action trading , it can be quite lucrative . It is much like crop harvesting . You can earn your bread and butter with congestion action trading.... and , you can buy the table to hold the bread , and the house to hold the table , and for the house you can buy an estate, and the car, the driver, and the boat, and the plane, and all the other toys or essentials you may or may not desire . In short , congestion action trading holds a lot of potential for you , if you take time to learn everything you can about it .

Congestion action trading - what is it ?

One result of stock trading course with Drummond Geometry is that you have clear definitions . There is a trend run for prices or there isn't . A trend run is not in effect when there are three or more closes on the same side of the Pldot and then there is a close on the other side of that PLdot. When the market is not in a trend run, then it is in congestion . It's very clear and simple .

When the price ends up closing on the other side of the trending dot, the first bar is known as the congestion entrance bar. Then it can be said that the market is in congestion by definition . When congestion is first entered we know that a block level and dotted line are created . This block level is the first block level of the congestion . So , congestion action is what this market action is called which begins with a congestion entrance bar and goes on for a time that is indefinite until on one side of the PLdot there are three closes, which marks the start of a new trend .

Let's have a look at the limits of congestion and how they're defined with stock trading course, as well as how expansion can occur .

The parameters of congestion are defined by congestion action , which is also known as the confines of congestion . You will remember the block level and the dotted line are what define the confines of congestion , and the first block level gets set up by what is known as the congestion entrance bar. But these levels can be expanded . If the price ends up going outside the dotted line or block level, while there is still congestion in the market (that is, without showing three closes on one side of the PL Dot ), then the confines of congestion are being redefined by price and there can be established an even larger congestion . This can happen several time before you see a new trend run .

Next time we'll talk more about congestion trading in the technical analysis explained series.