Abletrend: Identifying and Analyzing Market Trends for Trading Success

ISBN-13: 9780470581209 / Angielski / Twarda / 2010 / 292 str.

John Wang; Grace Wang; Larry Williams

Opis

A worldwide leader in financial trading software shares one of its most successful systems In AbleTrend, Dr. John Wang discloses for the first time, the fundamental principles behind his bestselling and award-winning trading system, AbleTrend signals. Sophisticated in scope, yet written in a way that any trader can understand, this book skillfully presents the theory behind this award-winning system. This reliable resource presents the logic of a proven system that reveals the direction of a trend at its early stage in all markets-stocks, commodities, foreign currencies, ETFs, e-Minis, and mutual funds. It also identifies objective, automatic buy/sell/stop signals, helping you manage risk, make rational trading decisions, and eliminate the guesswork.

• Pinpoint when market trends start and end, and where the key support and resistance are
• It's universal-applied to any market and any time chart
• Applications are offered with over 20 real-market case studies
• AbleTrend confidential seminar costs $2,000, now you may get the secrets from this book
• AbleTrend was developed by a recognized authority and expert trading system developer

AbleTrend presents innovative decision-making trading concepts that will allow ordinary traders to identify market trends and seek profits from them.

Spis treści

Foreword xi

Preface xiii

What You Will Find in the Book xv

What You Will Find on the Web Site xvi

Disclaimer xvii

As You Begin xvii

Acknowledgments xix

CHAPTER 1 The Search for a Universal Market Law: The Rise of Able Trend 1

Complete Chaos or Hidden Order? 1

When My Interest in Trading Began 5

A Scientific Antidote to Arbitrary Market Predictions 6

First Steps: Becoming an EasyLanguage System Developer 7

The Trend: Foe or Friend? 7

The Fundamental Approach 8

The Dream of a Universal Early–Trend Indicator 9

Could the Laws of Natural Sciences Also Govern the Financial Markets? 10

The Birth of AbleTrend 10

CHAPTER 2 Advances in Market Trend Analysis 13

What Is a Trend? 14

The Setup of a Trend 16

Maturity of a Trend 18

Drawing Trendlines 24

Support and Resistance 29

The Market Defines Support and Resistance 30

How Common Methods Define Support/Resistance Levels 30

How AbleTrend Defines Support and Resistance Levels 32

AbleTrend Indicators 37

Other Trend–Following Indicators 40

Market Indications 46

Three Rules for Following Trends 49

The Golden Region of Entry: The Sweet Spot 50

Time, Price, Forecasts, Predictions, and Targets 54

Cycles and Waves 57

Summary 59

CHAPTER 3 Four Elements of Trading Success 61

Profitable Trading Systems and Methods 62

Adequate Capitalization 67

Money Management Strategy 70

Discipline or a Winning Trading Psychology 80

Conclusion 85

CHAPTER 4 Essential Philosophy of Trend Trading 87

Wisdom of the Tao 87

Trading Is a Business 98

Only Trend Following Works 100

Don t Trade Against the Market 105

Which Market Is the Most Tradable and Why? 107

Why Voting Systems Do Not Work 110

Why $500 or 5 Percent Stops Do Not Work 110

Why the Winning Rate Is Not Important 111

Why You Cannot Pick a Top or Bottom 112

How to Let Profits Run 113

How to Cut Losses Short 113

Go the Opposite Way of the Majority 115

Trade Only the Risk Capital that You Can Afford to Lose 118

If You Want to Win, Think About Loss 118

Place Yourself beyond the Possibility of Defeat 119

Trading Is the Most Difficult Thing in the World 120

Conclusion 121

CHAPTER 5 The Applications 123

What Is the Winning Framework for a Trading System? 123

STM Method Buy on Blue and Sell on Red 128

Evaluate a Trading System: Back–Testing 134

Four Important Issues for Parameter Settings 140

AbleTrend2 Stops 144

The Sweet Spot Golden Region of Entry 147

Finding the Character of a Particular Market 150

Trend Time Frames 151

Avoid Choppy Markets 154

Breakout or Retracement 162

Day Trading versus Swing Trading 166

In Conclusion: The Five F s of Designing a Trading System 166

CHAPTER 6 Examples of Trend Analysis 169

Stocks 169

Commodities 178

The E–Minis 189

Forex 199

Bonds 205

Conclusion 210

CHAPTER 7 Advanced AbleTrend Tools 211

Virtual Paper Trading (VPT) 211

Historical Forward Testing 213

AutoScan 216

The Percent Charts 218

The Guidance Charts 219

Stock Search Engine Stock Picks 220

Visual or Chart Trading 222

Automated Trading Orders 224

Options Trading 224

Spread Trading 226

Portfolio Trading 227

Summary 237

APPENDIX A Interviews with AbleTrend Users 239

John Meyer 239

Bob Seifert 242

Harvey Saff 244

Gerry Wollert 245

Mike Weingart 246

Alex Kuan 247

Remco Eenink 249

Chris Anthony 251

Jim Kane 253

David Fawkes 254

APPENDIX B Quick Reference for STM 257

STM Trading Method 257

References 261

About the Authors 263

Index 265

O autorze

John Wang (Hayward, CA) is co–founder, chairman, and CEO of AbleSys. He co–founded AbleSys Corp. in 1994, and created the Spyglass Trading system in 1992, ASCTrend indicators in 1995, and developed the eASCTrend trading system in 2000. AbleTrend 7.0 was launched in 2000. Dr. Wang holds a B.S. in chemical physics from the University of Sciences and Technologies of China (USTC), an MS in quantum chemistry from Zhongshan University, and a Ph.D. in major physical chemistry from University of California Santa Cruz where he was awarded a Regents Fellowship. His research has been published in top scientific journals including Chemical Physics Letter and the Journal of Physical Chemistry, among others. He was a senior and chief scientist at TeloSense Corp. Dr. Wang began trading commodities in 1990 and is an active trader today, registered as a CTA (Commodity Trading Advisor. Dr. Wang′s extensive backgrounds in both trading and natural science make him uniquely qualified to create and test computerized trading systems.

Grace Wang (Hayward, CA) is vice president of AbleSys and received an MA in sports psychology in 1987 from California State University Sacremento, and an MA in physical education and gymnastics from Shanghai Institute of Physical Education in 1981. Grace became a CTA in 1995 and has been a frequent panel speaker at financial trade shows since 1999.

Blurb

Praise for ABLETREND

"We all know that developing a stable trading system takes a lot of work. But how much is a lot of work? After reading AbleTrend, you will have an idea of how much time and commitment authors John and Grace Wang had to put into developing their trading system, AbleTrend. What you gain from reading this book is an understanding of the important elements that make a great trading system."
JAYANTHI GOPALAKRISHNAN, Editor of Technical Analysis of Stocks & Commodities magazine

"This book does an excellent job in explaining the concepts and benefits of how and why trading systems and money management are vital for today′s investors. Do not miss reading the significance of and requirements for proper risk management, which is provided in these pages. This book gives innovative money management strategies and formulas which could certainly level the playing field for novice traders who are competing against high–profile money managers. This book not only will help all traders, but it could certainly bridge the gap to what may be the missing piece in any trader′s game plan."
JOHN PERSON, author of A Complete Guide to Technical Trading Tactics, Candlestick and Pivot Point Trading Triggers, and Forex Conquered; founder of Nationalfutures.com

"If you trade and want to learn the art and science behind an award–winning trading system, then this book is for you. John and Grace Wang provide an in–depth look into trend analysis, and they cover clearly defined rules for trading their system via AbleTrend scanning and charting software, powered by eSignal real–time data. This book offers valuable new insights on trend analysis that you will find useful."
JULIE CRAIG, Vice President of Marketing for eSignal

"AbleTrend shows me how to trade with precise accuracy and elegant simplicity. One additional very important thing: AbleTrend helps one to control one′s emotions and (often wrong) ′gut′ feelings about the patterns. AbleTrend gives one confidence to enter and exit positions. AbleTrend gives one confidence to STAY IN a position."
DR. JOHN MEYER, Physician and AbleTrend user

"I have great confidence in AbleTrend to help my trading in the coming years."
ROBERT J. SEIFERT, Professional trader for thirty years, fund manager, and AbleTrend user