Saturday, October 30, 2010

外汇交易策略80条

 

外汇交易策略80条内容导读: 请仔细研究大腕们使用的80条外汇交易策略,并记住你只需要四样工具:柱图,均线背离,枢轴点和趋势线分析。不需要更多,简简单单。不要受人误导而相信别的。这个世界到处是怀...
请仔细研究大腕们使用的80条外汇交易策略,并记住你只需要四样工具:柱图,均线背离,枢轴点和趋势线分析。不需要更多,简简单单。不要受人误导而相信别的。这个世界到处是“怀疑的托马斯”,他们指手划脚却从未赚到过一文钱,他们卖铲子但自己不用。
外汇交易策略1:
刚入门时,努力从每个交易时段捕捉20点,然後停住,关掉它,做更多研究。当你真正擅长了再求更多。在你变成外汇行业的大师前,设定20点目标并坚持。我强调行业一词,它不是游戏,关系到你辛苦挣来的钱。
外汇交易策略2:
花主要时间在15分钟图上。
外汇交易策略3:
在开始某个交易时段前,先看1小时图,得出时段过渡时的趋势,以及新时段开始时可能会怎麽走。
外汇交易策略4:
只有你绝对需要知道15分钟图後面发生什麽时,才看5分钟图,尤其当k线拉长或刚穿越枢轴点,换句话说,是否5分钟图上发生逆转而15分钟图上尚未反映出来?
外汇交易策略5:
不要停留在5分钟图上,因为它有太多杂音,会把你折磨至死。
外汇交易策略6:
15分钟图上的均线法则:即便均线在1小时图上是上行,如果在15分钟图上是下行,这就暗示逆转正要到来,但尚未发生。同时你不想错失15分钟图上反映的正在发生的事情。
外汇交易策略7:
如果均线在15分钟图上下行,但价格却欲上行,价格迟早会下行,比如被枢轴点弹回,或被另外三种工具(柱图,均线背离或趋势线分析)捕捉到的节点所逆转。均线上行而价格欲下行的情况同理。
外汇交易策略8:
只使用均线的背离,而不用均线做买卖信号,它是延迟指标,对外汇来讲太慢。
外汇交易策略9:
15分钟图上的均线背离比1小时图上更重要。背离是指均线与价格波动方向相反。
外汇交易策略10:
始终用20-30点止损保护资金。精神止损也可,但必须有严格的纪律。做10次你可能错3次,三次的损失应该保持在20-30点以内,你的获利应该远大於小的损失。不要害怕损失,专业棒球手也会10次失手6次,狮子追杀成功率仅20%,职业扑克选手失败率50%,你的机会比他们要好,人生没有 100%确定的事情。
策略11:
当你贴近枢轴点或某个重要形态(如双顶或趋势线突破)下单时,把止损放在让你行动的事件另一边,但不要太近,因为价格往往突破后反抽如果你使用20-30点止损,但33点能安全渡过反抽,那就用33点。规则是20-30点,但要符合情理。
策略12:
止损的目的是保险,不适用于获利,当然你可以用移动止损法来保护赢利。
策略13:
交易外汇仅需四种工具:柱图,均线背离,枢轴点和趋势线分析。做技术派,避开基本面,消息已融入价格,你不须每分每秒去看消息。读柱图包括找出双顶(底)甚至三顶(底)。
策略14:
困难的部分到了:我说过对下个交易时段高与低的预测可以是m1/m3或m2/m4,但交易是灰色而不是黒白的,实际的高和低可以是 m1,m2,m3和m4的任意组合,可以是m1/m4,m2/m3或任何其它五个枢轴点的组合。m1/m3和m2/m4仅仅是参考,而不是水泥浇注的。价格是第一指标,它决定着高与低将会是什么。另外你应该将此预测与另外三种工具结合使用。换句话说,如果价格从上一时段进入当前时段时是下行,从m3开始继续下行,那么m3很可能就是新时段的高,即便系统可能指示m4是高。所以枢轴点要与另外三种工具结合使用。我见过实例,价格下行,新时段开盘直接穿越 m3,同时形成双顶,这里有三个指示价格肯定要下行。我相信此时均线也一定是下行的,这又多一条线索说明新时段的高已经出现。
策略15:
开始时从四个主要对(eur/usd,usd/jpy,gbp/usd,usd/chf)中选一对,研究它的韵律并成为专家。我建议欧元。当你做的很好时再交易其它三对。在学习阶段你可能手忙脚乱,只做一个,不要在四对中跳来跳去。
策略16:
做交易记录,包括好的坏的交易,分析哪里对了哪里错了,并发誓不再重复错误。养成好习惯,做专业交易员,这不是可以拖着枪乱放的地方。
策略17:
重要一点:如果价格开盘就在新时段预测幅度的顶端(r2或更高),换言之,处在卖区(高于中央枢轴点的区域),且有其它指标指示价格过高(如特定k线,均线背离或趋势线突破),那么价格有可能已经是新时段的高了。同理,如果价格开盘于新时段预测幅度的底部(s2或更低),或者说处于买区(中央枢轴点以下区域),且有其它指标建议价格过低,则价格可能就是新时段的低了。
策略18:
如果没什么可做就不要做,不要冲动或仅仅是想做而做,那会带来很多麻烦。仅当四种工具有非常明确信号时才做。
策略19:
选择交易商要选这一行中点差最低的。
策略20:
有时在周末休息后,周日开盘时出现剧幅波动。通常情况下我使用周五的高低开盘收盘(ohlc)数据,但如果周日出现15分钟图上剧幅波动,我会使用周日的ohlc来更好地确定下一时段的支撑和阻力位。当然这只适用于将周日两小时与周一分开的交易商。
策略21:
经常有人问我为什么他的枢轴点与我的不同,答案是你可能使用不同的交易商,24小时交易时段在不同时间断开,结果当然不同,但没关系,因为你的枢轴点计算是反映你用交易商过去24小时的市场,其结果也预测下一时段的支撑和阻力位。如果你的交易商下午5点断开,你使用不同时间断开的ohlc数据,则出现不同步。
策略22:
提醒前股票交易者(我说前,因为确实不知道为什么你尝过外汇后还想回到股票):不要过度交易外汇,这不是刮头皮的市场,外汇趋势很好,下迭中不要买过早,上升中不要卖过早,看到趋势线突破后再做行动。
策略23:
除非全心投入你不会在外汇交易上成功,这不是玩的地方,如果你不打算认真对待,去做别的吧。
策略24:
把你的情绪放在后裤兜,这是事业,应该以事业来对待,你有任何坏习惯,外汇市场会很快给你纠正。
策略25:
重要一点:如果根据你目前一切所学,本时段的大势是跌,则想“下”,反弹就卖,不要试图去买,否则会折磨至死。同样,如果根据你目前一切所学,本时段的大势是长,则想“上”,逢低就买,不要试图去卖。前股票交易者想双向都得而牺牲。或许当你真正擅长了可以一试,但目前,只想一个方向,免去悲伤。
策略26:
另外重要一点:欧元大势开始于纽约时间凌晨2点以后,正是伦顿时段,外汇最忙时间。一个时段又一时段,欧元总会在这第一个12小时里平均走76 点。不管你信与不信,欧元一旦决定了这12小时的大势,就一直走到该幅度(76点)的另一端。要抓住趋势,骑上它。当然它不会走直线,即使飞机起落也有途中颠簸,欧元亦如此,一旦选择了方向,它会盘旋直到幅度的另一端。途中会骗笨钱出局,他们从来不知道发生了什么。结论是:如果欧元想在12小时里下跌,它会向下走完76点,要往“下”想;如果欧元想在12小时里长,它会向上走完76点,要往“上”看。这12小时里欧元要么长要么跌,不会两者都有,我讲的是主趋势。当然途中会有反弹或回调,取决于长势还是跌势,但如前述,跌势中卖反弹,长势中买回调,这就够了。
策略27:
想想看,你得到上面策略26,你会爱上它,它将考验你的神经。如果你想买入这12小时的大势,何不当它开始时就骑上它!这需要铁的神经,因为欧元会不时背着你走,但不足以吃掉你开始设的止损。从风险回报率的角度,你冒险20点获利76点,不错的比率。我想说的是何不下单,设上止损,去清理游泳池,让欧元区折走完它的幅度!很多人被骗出的原因是他们下单后紧盯着价格,稍有波折就反应过度。放下不要去管它,最坏就是被止损出局是吧,往往是你不会,如果你捉到了主趋势,机会非常有利于你每手多赚760美元。如果途中不停交易,你可能被打的很惨最后赔钱。让欧元领着你,而不是相反。
策略28:
不时的,我会鼓励你从日间图后退几步,远距离来看它,有时你可能离的太近,只见树木不见森林。从日线图上标出趋势线并找出背离,你会看出很多下一步的走法,这正是你想知道的是吧。不仅趋势线突破和均线背离有大文章,日线在哪里收也会暗示下一步将会向哪走,研究柱图你会知道我的意思。
我觉得不时停下来从更高层次思考是明智的,从上向下看事物是健康的。有时我们会迷失在日间价格的碎步里而看不到眼前展开的大画面。
策略29:
重复一下,你只需看几样东西,然后耐心等待入点的出现。不要觉得是时间了就扣动扳机,要等明确信号。只需四个指标:柱图,均线背离,枢轴点(突破/测试/遇阻)和趋势线突破,这些足以让你在外汇交易业成功,不再需要铃铛和穗子,可能与你以前学到的不同。最难做的是抹掉以往所学,摇摇头让它们走开。
策略30:
虽然我说只要四条线索,实际上还有第五个就是价格。价格是天底下第一指标,它告诉你想去哪,让它指路。好比打牌,在它自己亮出来前必须耐心等待。这叫跟着头羊走。
策略31:
最近有人问我关于买卖多手的问题,你可以在入点就满仓,也可以一次一手,随着价格穿越每个枢轴点加仓,直到幅度的终点。如果你确信已顺势并有好的资金管理技术,沿路加仓没有错。或者两者并用,开始就全仓,随着价格穿越枢轴点买/卖更多,直到终点。不要出局过早,记住外汇趋势性好(尤其主趋势),价格知道想朝哪走,让它带你去那。用五个指标来做出你的决定。
策略32:
在枢轴点之间交易要小心,这是无人区也是危险区,好的交易是在枢轴点附近做的。
策略33:
花时间在15分钟图上画出枢轴点,这应该是你重点关注的,就如飞机上雷达,没有参考点很难交易(起飞)。不需要画出全部,也不一定能放的下,但至少画出价格附近的枢轴点。你也可以在1小时和5分钟图上画出,但不能花太多时间在上面,或许是浪费时间,但并非有害。你还应画趋势线。趋势线在枢轴点突破是转向的有力证据。再画上均线背离,图上看到的越多,交易会越好。交易时段也要划线分开。
策略34:
5分钟图好比航船上的微调板,虽不起眼,但对纠正航向很有作用。交易亦如此,不时看看5分钟图会洞察15分钟图下面有什么异动,这很重要,尤其是接近趋势尾端,价格试图结束趋势或朝反方向偷袭你却没有注意。当然如前所说,不要停留在前股票交易者喜欢的5分钟地盘上,那些人本质是刮头皮的,但在外汇市场会被刮光,正如我的一名新客户巨痛后才发现的。他现在下完单(设好止损),就去机场接机,或清理游泳池,然后回来看看不执迷于每个小波动而赚了多少钱。我不是说完全不管,但我说的是太近就是太近。一旦捉住了趋势(通过五项指标),让价格自己走,耐心等待让你行动的下一个事件。当然下一步行动也要是通过前面五项指标得出的。如果没有看到什么特别,什么也不要动,坐在你的手上,做什么也不要按进入键。
策略35:
最近有人问我需要多少信号才扣动扳机。我前面说过,你只需要从柱图,均线背离,枢轴点,趋势线和价格来找方向,但要多少信号才交易?当然一个就足以定音,但两个或更多一起说同样事情则更有说服力。比如,欧元最近是跌势,从上个交易时段结束到进入新时段仍在跌,在新时段开始,价格在枢轴点附近形成双顶。好了这里有三个信号告诉你怎么做,当然是做空。我们有跌势,双顶还有上顶枢轴点,很多证据说要下行,你应该明白的。这好有一比,早晨开车去上班你不必等所有灯变绿才启动,那样你就别上班了,绿灯越多越好,但一个绿灯就足可上路了。
策略36:
一些心理学:对于新手,交易做多了自尊心会上升。你不会永远正确,你会犯错,这对新手和老手都是正常的。不要被失败击倒,对自己说下一次,你必须向前走。如果使用好的资金管理,如20-30点止损,你会活下来看到下次交易,这就是保存力量。不要怀疑你的指标(记住,柱图,均线背离,枢轴点,趋势线和价格),你不应该跟飞机上的仪表争论,否则就会撞机。所以要对指标不存怀疑,当它告诉你行动时要行动,它告诉你买就买,要有勇气这么做。一个要点是:不要听任何其他人的,做自己的顾问,闭上耳朵交易,这是你和你的钱,你没有人可问。要避开负面思维的人,不要跟人讲外汇,除非他跟你一样对外汇死认真。否则他会把你拉下来。要谦虚,把吹牛权留到以后。如果你变得自负,外汇会把你拉下来。最后是专注于成功,当心你的思维,思维会铸就行动和结果。如果你专注于最后的结果成功,你将会到达那里。如果你总是害怕,会影响你的心理。当你失败和摔倒时,把自己拉起来,拍掉土,继续前进。不要被错误吓倒,你将会做的更好,尤其当你保留所有交易记录,下死功夫研究它们。要做专业人士,做有准备之人。
策略37:
最近有客户问我,他发现价格穿越枢轴点上行好大阵,账面上多了很多钱,在r2处停住,然后继续上长,应该怎么办?回答是:r2通常是阻力位,当价格穿越r2上行而不再跌破r2时,r2变成了支撑位,这是一个买入信号,记住价格是王,它想怎么走就怎么走,你必须跟着它,即使它已经给反方向的添了许多眼泪,或已经超越它的日均幅度,如果愿意它仍会继续走。记住:外汇趋势性强,不要买过早,也不要卖过早,等待它已做出决定的强烈证据。在此例中,价格在 r2停住,但并没跌破它,没有任何要逆转的迹象,一旦决定继续上行,你所有要做的就是跟上,不要成为r2高位缺氧的牺牲品,相信你的指标,按他们告诉的做。不要本能地认为价格太高了,如果愿意它可以走更高,在本例中是高的多。
策略38:
练习的越多,我的运气越好。(waynegretzky—加拿大冰球名将)
策略39:
通常你不应在枢轴点之间买卖,这是无人区,等待价格在支撑或阻力位做出决定,并结合其它指标,价格方向,柱图,均线背离,在枢轴点的反应,趋势线突破。
策略40:
不要将均线用于背离以外的东西。最近均线在15分钟图上上行,让不疑的交易者相信价格上行,但价格在主枢轴点处调头向下去寻找幅度的另一端s1。在均线上你看不到这些,因为它是延后指标。总之,均线只能用于背离,不能用于其它目的。
策略41:
你只应在枢轴点附近进出,而不是之间,如前述。当价格在枢轴点上波动,看一看5分钟图,幕后有什么发生,因为在价格与枢轴点交涉之前你应该一直只关注15分钟图。现在你应该关注价格在袖口干什么。在上面(40)的例子中,价格上穿主枢轴点欺骗了不疑的交易者,然后下跌,在15分钟图上留下长上影线。当然只看15分钟图还看不到,但5分钟图上已经价格逆转,准备下行。
策略42:
均线与价格没有背离,只说明均线确认价格趋势不变。但也不要被捉弄,见40中例。
策略43:
阻力位(m3,r1,m4,r2)是卖区,卖者会多于买者,价格被下压。同样,支撑位(s2,m1,s1,m2)是买区,买者会多于卖者,将价格推高。这些预期是根据前一交易时段买/卖关系的解释,相信仔细研究枢轴点后你会同意这种看法,价格在接近和围绕枢轴点处会犹疑,停住,并决定下一步走向。这就是为什么你不应在枢轴点之间交易,此时价格在进行中。
策略44:
不要因为有人说太危险而被吓出外汇市场,实际上与其它市场比它是风险最小的。外汇市场不像股票和期货一样被操纵,它是一个真正完美的24小时市场,你的止损单很少不能执行,因为外汇市场有高流通性,每日交易额达15亿美元,它是世界上最流通的市场,你得到好的成交价,和快的成交速度。
策略45:
5月23日是一个不寻常的日子,价格超出了平均幅度,从枢轴点开始两小时长135点,跃于r2之上。欧元在双顶处逆转,跌破r2,回到日平均幅度,在本例中稍高于平均幅度。当然你可能已经注意到,双顶同时又是双轨(如果正巧你看的是柱图而非烛图),两种形态同时产生是很强的信号,表示已经到了头。所以在看价格形态的同时,注意同时发生的组合形态。
策略46:
5月23日应该是m2/m4,因为头天收盘在高位,但实际幅度却是枢轴/r2。女士先生们,交易是灰色的,枢轴点不是石头做的。但通常它们会很接近。
那天,枢轴点r2组合使欧元超过日均幅度,但仍在枢轴点定义的逻辑范围之内。中央枢轴点成了买点(支撑),当价格有力地上冲后,它成为当日寻幅使命的起点。同样,r2是卖点(阻力),是卖压的可能目标,所以欧元在此结束了它当日的寻幅使命。
重要一点是,欧元所获完整幅度都在枢轴点逻辑和规律的指标以内,这是理解该事件的要点。我的意思是中央枢轴点下面的四个枢轴点都是可能买点,上面的四个枢轴点(包括r2)都是可能卖点。获得,或如5月23日超过完全幅度,都是常理,不一定严格遵守m1/m3或m2/m4的买卖组合。
我相信你已经看到枢轴点的力量,你只应在它附近而不是中间无人区买卖。这里唯一要警告的是如那天,价格在r2之上形成双顶和双轨的形态组合,这一逆转现象,尤其两种形态同时发生,是不容忽视的。
但这里的要点是价格在上穿r2后形成的双顶/轨,该区应该属于竭尽区,考虑到最后的阻力位被破的事实。然后你寻找有力证据,看价格会继续上行还是如本例逆转向下。
要仔细研究柱图,相信你已注意到价格在某一交易时段的表现与上一时段的相似性。事实上由于外汇趋势性好,每天都看起来相似,除了实际幅度,高低点不同而已(即九个可能枢轴高低点的循环重复)。
价格总会决定要使用哪一套枢轴点,所以要跟上价格,正因如此我称它为第五个指标,或许是五个中最重要指标。到此,另外四个指标你应该有了很多的了解。
请坚持每天研究柱图,它们提供了每天发生的重要线索,如果你明白图中的东西,你必将持续赢利。
策略47:
不要过贪。最近听一个客户说他从一个交易时段只获150点,很多都落在桌上。天那,像他从股市来的人,一天获利这些应该很感激了。要点是,如果你从新手开始每天只求20点,超出的都是奖励,时间长了财富一定到来。
但不要忘记老话“落袋为安”,如果你见到赢利想拿到手,那就拿了高兴吧。你会活着见到另一天,获更多的利。不要总想抓大,这里不会一夜暴富,这里需要保存力量,持续赢利。当你有好的理由平仓时就去做。
策略48:
外汇交易需要遵循一套纪律。大量金融行为学研究表明,比起获利$1的喜悦,交易者损失$1承受两倍的痛苦,因此他们冒更多的风险来避损而不是赢利,结果高买低卖,与传统智慧相背。遵循我的交易策略,你将避免像5月28日的汇市大跌中被剃短发。
策略49:
有人问我为什么等到纽约凌晨3点才行动,失去这以前的可能机会。答案是:这个时间是伦敦交易开始,也是汇市最忙的时间,你会注意到欧元通常此时开始它的主趋势,去寻找它的日均幅度76点,这些点通常会在第一个12小时里发生。自己核查一下,这几乎每天如此,年年如此。
策略50:
“上升三角型”:价格高点似有水平线,而低点越来越高,这通常是牛的形态。取三角型的高,从高点上量得到新的目标价,例子可见03年5月26日。
策略51:
结合枢轴点与其它信号如背离,多重顶,趋势线突破,三角型等,你会很好地知道价格下步走向。通常你应该只在枢轴点附近进出,但有时枢轴之间距离很大,你应该找其它证据预测未来的方向。
正如我一直所说,交易是灰色的,这里没有黒与白,交易更多的是艺术而非科学。当价格遭遇枢轴点时,你会看到该点对价格有很大影响,所以当价格与下一个枢轴点发生作用时要警觉,它可能对下步有显着影响。
策略52:
如果你想抓到伦敦时段的主趋势,却担心入点搞不准,那就等下一个枢轴点。下一个入点就在价格穿越的下个枢轴点附近。或者等它回头重试枢轴点时进入,这样就没有了入点过早的危险了。有时价格会欺骗,在一个方向走一会,又逆转方向,最后才选定方向。我喜欢的格言是“拖延者羸”,你失去的是趋势最初大约30点,但更有把握获取余下的46点,因为主趋势要走完它的日均幅度76点。
策略53:
我想提醒你中央枢轴点以上的枢轴点有卖的偏向,中央枢轴点以下的枢轴点有买的偏向,这些偏向保持有效,直到价格将它的偏向由卖变买,或买变卖,即阻力变支撑或支撑变阻力。
2003年6月6日,你会观察到价格在m3的偏向有效,但中央枢轴点下面的枢轴点却由买或支撑变成了卖或阻力,当然,价格决定一切。
另一个要点是,当主趋势展开后(几乎每天发生,在开始的12小时里)你应该沿着偏向去想。那天早期交易的偏向是做空,意味着你应该忘记如何拼写 “做多”。刮头皮的人想双向都获利,但在外汇市场行不通,除非你想被修短发。我这么说因为外汇趋势性好,不要怀疑趋势,除非有确定的逆转信号。换言之,不要卖过早,也不要买过早。
策略54:
把交易日志继续下去。如果你总是按同样方法交易,你将总是得到同样的结果。
策略55:
没有什么说你必须经常交易或每天交易。在其它市场,大多专业交易员每周只做三到四次非常好的交易,但汇市上却不然,这里的时间段是每天。不过,如果没看到极好的交易就不要交易,关掉它去打球。
放慢速度,遵守限速,这不是赛车。无论如何,你控制市场而非被市场控制。不要强迫自己做不舒服的事,等那些完美的机会再行动。同样在不顺的日子,什么也别做或去别的。掌控你的交易,而不是被控。
策略56:
经常有人问我均线的参数,我用的是初始设定,一样好用,无论如何,均线只用它的背离。
策略57:
我前面说过你应该在枢轴点及附近交易。唯一例外是如果你在柱图上看到趋势线突破,或长上影线,发出明确的逆转信号。如果价格在枢轴之间,而你不知道该怎么做,就什么也不做。汇市或其它市场一样,耐心是最难的。
策略58:
欧元的主趋势从伦敦时段开始显露,在此之前,价格会引诱你朝另一方向想,而事实上它却准备好向相反方向走。在伦敦时段展开前你很容易被骗,应该耐心等待,从上一时段寻找线索,价格最终会怎么走。你有否看到头肩顶,三角型?有否看到价格在某方向走了很长一段时间?有否看到均线背离(1小时和15分钟图上)?有否任何通道,价格试图朝哪边突破?做富尔摩斯,一点侦探工作会在你起跳前帮助很多,如童子军所说“准备好”。把情绪放在后裤兜,以后再用。把交易视作砖石工程,用同样的原则和方式。这不是在赌博,这是严肃的事业,干系到你辛苦挣的钱,要不惜一切保护它。
策略59:
有人问我为什么不贴出我的即时交易,为什么我从事交易时不可以给我打电话。回答很简单,授人与鱼养其一日,授人与渔,养其一生。而且在安静的交易时间被打扰是非常有压力,也是非常费时的,相信你能理解。我的客户遍及30多个国家,谁来了都要接待将会是噩梦。我们正准备开一个聊天室,眼下还不知何时开张,到时我会及时通知。
我教人捕鱼,而非给人与鱼。记得我第一次学习交易时,做每一步都有我的老师坐在身边,但有一天他搬走了,去了一个偏僻的小岛躲避城市生活。这对他很好,但我却很恐惧,自己如何能生存?女士先生们,当我被迫自己做的时候我真正学会了交易,那时我真是汗珠满额。
这是你和市场的事情,以及掌控你的心理。任何人都可学会用我的方式交易外汇,但做好做坏取决于你内心不停怀疑的小声音,而且恐惧和贪婪时时咬住你。你必须掌握的是你的心理,你必须有纪律和耐心,你必须按我教你的真实信号行动,否则你不如去当地赌场碰运气。
外汇不是赌博,它是一项事业,会有失有得,你所不停努力的是当价格与你相背时要控制它,你是负责人,你可以通过聪明的交易与好的资金管理来取得上风。你不会每次都赢,但使用我的系统,你会十中赢七,秘诀在于把损失控制到最小,让赢利飞奔。
回到没有教练坐在旁边单独行动的话题,我的一位朋友告诉我他如何学会飞行。教练在飞行仓陪他练过几次后,他们降落回机场,教练转过来对他说“该你自己了,我走了”。说到紧张和压力,朋友自己起飞又降落回来,但脸色仓白,双腿打颤。从此后他就独立飞行,已成为他热心做的事情。这就是没有人手把手而自己独立去做,我们称之为“拔高信心”。如果你能成功地自己飞行或交易,世界上没有什么事你不能做的同样好。事实上,能够在航空母舰上降落的飞行员可成为最好的交易员,这是另外的故事了。我可以告诉你,我的朋友在那次单独飞行中比以前有教练陪着的所有飞行学到的更多。交易也如此,你能做到,一定要相信。努力成为大师,分析,阅读,研究,思考。对交易有激情。不要把它当成快速致富的途径,因为热爱才去做,就像不管如何你都要做,尽管它可以赚钱。这其中一定有乐趣,只工作不玩耍,你知道会如何。
不要误解我,有问题我会解答你,我希望你成功,与家人共渡幸福时光。当你来信告诉我它改变了你的生活,你现在用我的方式交易外汇快乐赚钱,没有什么比这更让我愉快了。
策略60:
当你觉得已经捕捉到主趋势,就不要再紧盯在柱图上。一旦趋势展开,找一个枢轴点进入,读柱图是为了捕捉主趋势方向的转变。
策略61:
跌势中的双顶意义不大,但双底却不同,跌势中的长下影线或双底表示短期逆转。一旦主趋势展开是在空方,假装不知道做多怎么写,紧跟主趋势。以上所说的是伦敦时段的开始,也是主趋势显露之时。
策略62:
开始做可能会有恐惧,从容易做起,等你熟悉的坚实信号出现再交易。这意味着你可能等待一二个时段,没关系,不急。我发现有些人急于证明什么,有人觉得必须每天刮头皮,我无法理解。不管怎样你有操纵权,慢慢来,放松,享受它,迟早你会见到你认识的坚实信号,好了冲吧。有怀疑时,什么也别做,没怀疑那就做,扣动扳机。
策略63:
不幸的是,你不会每次都得到扣扳机所需的所有信号。交易是科学更是艺术,你不可能100%确信。如果等所有鸭子排好队,要等很长时间。我喜欢的比喻是:你坐在车库里想去上班,你在等路上所有灯变绿才开车。想一想,你永远上不了班。交易也一样,有时必须做有知识的猜测,然后出发。你不会永远正确,但这不是正不正确的事,这是做决定并坚持,必要时就转向的问题。接受被止损出局的事实,当作是上帝把你踢向更高一层,离成功更近一步。
策略64:
这一条感谢汤姆:当到达某一时段的枢轴点时(m1,s1,s2,主枢轴点等)只有两个选择,多或空。基本规则是:在s1,s2,m1,m3区的枢轴点下做多(买),在r1,r2,m2,m4区枢轴点上做空(卖)。很明显,多和空的问题不是如此简单,还需要根据其它指标如均线背离,柱图,趋势和形态等。汤姆呀,路很长呢。
策略65:
前面说过,你应该在枢轴点附近买或卖。但如果价格在枢轴点之间徘徊,并形成双顶,相信价格将会下行。所以有时你会在碰到枢轴点之前就行动。当然等价格到了再做反应也不为过。
策略66:
这一条感谢哈里:他指出我有时提到“价格投影”,问这是什么意思。简单说它是价格逆转形态,中间柱比两边的柱有更高的高,中间柱就是一个逆转柱,引发转向,价格逆转向下。价格逆转向上的情况同理,中间柱比两边的柱有更低的低,中间柱就是逆转柱。
策略67:
任何事情成功的关键在于重复,包括外汇交易。交易训练的越多,真钱做的越多,就做的越好。你必须坚持,一遍又一遍,贵在坚持,如果始终做不放弃,任何事情都可以做好。不要被市场吓退,赔钱时只当作经验,接受教训,从错误中学习。坚持写笔记,如果不写,它就不存在。
策略68:
我的印象是有些人没有给趋势线足够的关注。趋势线是有力的,价格突破趋势线会转向,不管其它指标如何说。所以要画趋势线,让它当向导。记住:在长势中(如03年6月25日),只要趋势线不破,低了就买。在跌势中,反弹就卖。长势中绝不试图做空,跌势中绝不试图做多,就这么简单。
策略69:
这一条感谢斯图:我一直说均线只用于背离,但斯图是对的,我偶然(如03年6月25)也用它来确认趋势。如果价格趋势一直向下,走了好长一段时间,那么当价格逆势而行时,非常可能只是回调或暂时的反向运动。我通常会紧跟主趋势,跌势中卖反弹,长势中买回落。
策略70:
有读者问我6月27日星期五发生了什么,15分钟柱图那么多巨幅柱。那是难做的一天,即使对于老练的专业人士。有很多跷跷板,很多止损被执行,交易形态被季末换仓主导。这是旁观的一天。下次遇到季末要有准备,在日历上标出来,下个,下下个。交易既要擅长它,也要有组织有准备。
策略71:
马拉松运动员在途中只想一件事:越过终点线。他们从不回头看。交易也一样,你应该集中于长期生存。当然有时会跌倒,但只须爬起来,继续向前。胜利者不放弃,放弃者不胜利。
策略72:
小心像7月4日周末这样的节日,交易清淡,很难产生有意义的枢轴点,最好去打球,忘掉它。没有人说你必须每天交易,要有自己的生活。
策略73:
如果你找入点有麻烦,我建议你等出现锤子或拉长顶,然后扣动扳机。你可能等很长时间,但至少可确定找到了好的入点,这种烛图是价格转向的可靠先行者。看看任何柱图,你能找出多少这种蜡烛,你会惊奇有这么多。
策略74:
我刚刚出席过一个年轻交易者的聚会,他们在外汇市场只有两个半月,他们在进步,我以他们为荣。我想把他们的观察传给你们,会有所帮助。他们已学会短期交易,正学着使用更长时段,从1小时图上寻找线索。他们相信1小时图上的信号比15分钟上的更强有力,他们说你应该等信号在1小时图上得到确认再行动,当然除非你在15分钟图上看到铁的证据。女士先生们,交易是灰色的,这些想法对他们有效,但并不是说你不可以一试。如果你试了并且有效,请让我知道,我将与其它同党分享。
策略75:
感谢比尔,他指出03年8月22日图上3:01和5:01-6:01期间的锤子没起作用。我的回答是:这些蜡烛需要与其它指标结合使用来决定价格的转向。比如上例,下跌趋势线并没有破,因此锤子所含的作用被削灭了。总之,图型所含的转向信号应该伴随有其它信号,包括枢轴点。换言之,当你看到锤子时价格在枢轴点发生了什么?枢轴点是否支持蜡烛所说?谢谢比尔。
策略76:
最近有人问我哪里找到外汇的交易量。有名的网站都没有,也没必要,因为外汇是流通的市场,交易量是多余的,你只需要技术分析来做外汇交易。
策略77:
有些新闻要关心。我过去一直喊多欧元和瑞朗,果不其然,2003年9月5日美国很坏的就业新闻使二者大长。在外汇市场,新闻不是燥音。
策略78:
有“说话”的牛与熊,还有“真正”的牛与熊。真正的牛熊反映在交易量和未冲单上,当然这些数据在外汇交易中不存在,但期货市场中有,因为期货是主要用来投机的工具,这些数据提供了感性线索。
汇市的转折点往往伴随着极端的未冲单数量,表示有极端的投机。这里的关键是看出未冲单和交易量的极端水平,指示趋势的可能转向。
未冲单数量日间很少有用,但通过未冲单和量来预知趋势的变化,或知道某一货币对的极端投机,对使用任何时间段的交易者都是有价值的信息。通过研究某一货币对的期货,可提高你检测该对货币的偏向并预测其未来走向的机会。
如03年9月2日,商业交易人极端做多欧元和瑞朗的期货,而货币却被极端做空。当你看到这两阵营的极端分歧,你知道价格可能将跟随商业交易人走。
欧元和瑞朗代表了很好的中线做多机会,很好的买并留住的机会。果然,03年9月5日美国出了很坏的就业数据,两者大长,有谁猜到了?
策略79:
我觉得有个错误概念,即你必须只用15分钟图交易。你还可以用1小时和日柱图交易,只是周期延长了。比如,当我喊多欧元和瑞朗时,你可以从日柱图上下单并留住,同样也可以等1小时图上出现合理入点再进入。
策略80:
对于新手,最好避开周一,长周末结束后或季末,这些日子有大量的换仓。

Sunday, October 24, 2010

识别低位放量上涨出逃形(炒股技巧)

低位放量下跌出货,一般容易识别。但低位放量上涨出逃,却往往被认为是建仓信号,隐蔽性较强,对投资者的打伤力极大。

  一些历史上深套的庄股,在经过长时间的下跌和沉寂后,逐渐形成底部形态,其典型特征表现为量增价升,量价形成双重金叉,似乎表现为明显的建仓特征。然而经过一段时间上涨,比如上涨30%以后,升势却嘎然而止,股价掉头向下,放量大幅下跌,甚至跌破历史支撑位。

  仔细辨别,原来庄家不是建仓,而是通过低位对敲出货。

  识别低位放量出逃与放量建仓主要有以下几点区别:

  1、成交量在短期内急速放大。低位建仓除非遇特大利好或者板块机遇,一般会缓慢进行。而低位放量出逃的特征是成交量在短期内迅速放大,日换手率连续保持在5%以上,在相对高位,会放出10%以上的成交量,且其间没有起伏,放量过程是一气呵成的。股价在明显的低位,如此放巨量,充分说明有资金在通过对敲出逃。

  2、上涨时放巨量。主要指即时走势图,上涨时异常放量,成交量大量堆积,给人以不真实的感觉。日涨幅并不大,但是成交量却屡创新高。

  3、反复震荡。不管是上涨还是下跌,即时走势图上,股价都反复震荡,暴露出主力清仓的意图。

  4、尾市拉升,连收小阳线。低位建仓的信号一般是尾市打压,日K线经常留下上影线,小阳线与小阴线交替出现。放量出逃的特征是经常在尾市拉升,盘中可能是下跌的,但日K线多以小阳线抱收。由于短期内成交量连续放大,价格上升,形成量价金叉,形态上十分令人看好。

  5、不会突破前期重要阻力位。突破前期重要阻力位,意味着主力必须吃进更多的筹码,这显然与主力清仓的初衷相悖。

  在大势不好的情况下,主力通过这种方式出逃,成本相当高,而且出货量也不可能大。只所以如此,关键还是非走不可,比如说资金链出现问题,或者公司的基本面出现大的利空,否则主力不会在被套几年、股价远离成本区的情况下强行出货。这种形态具有较强的隐蔽性,即便是老手也有上当的可能。识别的关键还是看成交量的异常放大,尤其在相对高位,如果连续放出10%以上的成交量,可以认为主力在出逃。

莫贪小便宜吃大亏

圣经?马太福音》里有一个著名的故事:一个富翁给他的三个仆人每人一锭金子去做生意。一年后他召集仆人想知道他们各自赚了多少,其中第一个人赚了十锭,第二个人赚了五锭,最后一个人用手巾包了那锭金子,他捂了一年没赚什么钱。这位富翁就命令后者把那锭金子交给赚钱最多者。这种“劫贫济富”的现象,就是我们今天所说的“马太效应”。《马太福音》中还有一句名言:“因为凡有的,还要加给他,叫他有余;没有的,连他所有的,也要夺过来。”这就是“马太效应”的含义。   

“马太效应”在股市中也发挥着神奇的作用,在历次的牛市行情中,个股之间都会出现两极分化现象。其中的强势个股始终保持着强者恒强的走势,当强势股股价涨高时,投资者越是不敢追涨,强势股越是能继续上涨。而弱势股却常常弱者恒弱,投资者越是认为弱势股调整到位该涨了,弱势股越是表现得不温不火。等到弱势股终于开始补涨,强势股也出现回调时,牛市往往已经告一段落,最丰厚的主升浪行情已经结束,投资者这时再进入股市,无异于羊入虎口。

  股市中的“马太效应”由来已久,每一轮行情中都能充分体现。每轮行情中强势股都能表现出强者愈强,而大批的弱势股却表现出弱者愈弱。当强势股出现调整走势时,阶段性涨升行情也宣告结束,那些弱势股往往还没有理想的表现,就跟随着大盘一起回落了。那些在上涨行情中不敢追涨主流品种,反而在弱势股中积极抄底的投资者,常常会“赚了指数不赚钱”。

  很多对股市“马太效应”还不了解的投资者,往往不能清楚地鉴别个股的优劣,他们常常会天真地幻想:今天,这只股票涨了,明天一定会轮到另一只股票涨;或者看到龙头股上涨了,就简单地认为与它同一板块的个股都会跟风上涨。但事与愿违的是,在强势行情中,涨过的个股往往还能继续上涨,而不涨的股票则仍然不涨;在同一板块中即使龙头股上涨了,也并不表示该板块的所有个股都能联动上涨。个股是否能联动上涨,取决于:板块容量的大小、板块热点持续性的强弱、题材的想象空间、同一板块的个股联动性等因素的影响作用。而且,即使投资者选的跟风股联动上涨了,但是,由于龙头股具有先板块启动而起、后板块回落而落的特性,所以,跟风股的安全系数和收益都远远小于龙头股个股。因此,炒股要做到 “擒贼先擒王”。与其追买跟风股,不如追涨龙头股。

  强势行情中,主力为了营造局部热点,并且维护热点的凝聚力,常常会用重磅资金对热点进行反复炒作,使个股之间的比价差距越拉越大,许多投资者贪图冷门股的便宜,于是纷纷在冷门股上抄底,结果,冷门股在大势走好时不能跟随着上涨,在大势回调时反而与大势一起下跌。民间有句俗话说:“便宜没好货,好货不便宜”,针对市场中的“马太效应”,投资者有必要树立正确的投资理念。在强势市场中,投资者要注意克服这种“贪小便宜,吃大亏”的操作方法。

 股市“马太效应”决定了追涨操作策略的实用价值,顺势而为是股市中成功投资的根本法则,在强势行情中投资者不仅要顺应市场整体的趋势,还要顺应个股的趋势,尽早地转变不合适宜的投资思路,及时参与到市场主流品种中,重点选择强势股、龙头股、热门股;坚决回避弱势股、冷门股、非主流个股。顺应股市中的“马太效应”,踏准市场前进的节拍,才能取得理想的收益。

主力绝密操盘方案大内幕曝光

这是某一主力机构针对某一上市公司股票策划的操作方案(精华本)。这份策划书可令投资者对主力如何在证券市场上呼风唤雨及其操盘思路,策略和手法有一个大致的了解,对投资者识破主力在股价炒作过程中设置的美丽的陷阱大有助益。
  因为原操盘方案涉及太多内容太多细节和专业术语,本人只能节选该操盘方案的精彩部分,并对该内容作了整理和删改。

  这份方案中的前言是这样说的,证券市场既是一个“非理性的市场”,又是一个只有少数人突出成功的市场;既是政府干预的市场,又是主力引导潮流的市场。因此,作为一名操盘手,不但必须具有超凡的操盘能力,而且必须具有高瞻远瞩、谋划大局和掌控局势的能力。第一、能够大体准确地预见未来大盘总体趋势,从而完成总体布局和运作周期;第二、能够把握并成功地利用市场的“非理性的狂热”和“非理性的恐惧”的情绪;第三、能够立足最坏最危险的角度,制定周密的投资策略和风险控制方案;第四、能够洞察未来的重大金融政策趋势的动向,准确估量其正负面影响,进行一系列高超的运作。

  前奏

  一、选定目标个股

  某上市公司总股本1.8亿股,流通股5000万股。盘子适中,流通市值较低。法人股较集中,第一大股东持有32%股权。前100名流通股东的筹码相当分散,目前还没有其他机构介入。公司的财务状况和经营管理等基本面总体较稳健,现金流较充沛,资产负债率较低(30%),资产出让容易等。目前股价较低,介入风险相当低。

  二、确定总体操盘思路

  未来大盘总体趋势:因上市公司业绩整体下滑、国有股减持、财务丑闻等一系列的负面信息影响,预计2002年到2003年春大盘总体呈现调整格局,虽然期间会有一轮向上小行情,但新一轮的大行情产生至快于2003年春节以后。这为充分建仓提供了必要的天时地利。

  未来可能推出的政策:近期可能推出的政策,(1)保险基金入市,(2)中外合资基金公司的设立,(3)B股市场对机构投资者开放……;中期可能推出的政策,(1)《证券投资基金法》出台,(2)QFII推出,(3)加强对上市公司的监管,(4)单边征收印花税;(5)股票抵押融资向中小投资者放开……;中长期可能推出的政策,(1)CDR和QDII推出,(2)统一指数和指数期货的推出,(3)创业板的推出……。未来推出的政策整体趋好,预示未来股价的上升将来自政策面的支持和配合。

  操盘手在上市公司未来基本面出现重大变化、未来推出的金融政策整体趋好和未来大盘将产生新一轮行情等基础上惯彻其“资本运作”思路:

  1、吸筹思路:通过上市公司业绩预亏、上市公司负面消息和股票技术图形……一系列的运作,以及利用大盘连续重挫和市场的悲观情绪……一系列的不利因素,强化投资者的抛售意识和悲观情绪,让投资者确信股价还要下挫,从而掩饰吸筹的目的。

  对于吸筹一系列的运作策划是基于:第一、大盘连续大幅重挫的深度和市场的恐惧情绪,预示大盘已经进入中短期的底部区域;第二、近期市场被连续的重量级利空消息所笼罩,而这些消息导致投资者抛售股票,或对股票不感兴趣;第三、在目前市况下,上市公司公告业绩预亏等负面信息,都会引发投资者抛股,股价出现重挫;……这为低价建仓提供必要的环境。

  2、拉升思路:通过并购重组、大宗交易、技术图形……一系列的运作,以及适时“借势”——借大盘攀升和适度“借力”——借正面的金融政策……系列的有利因素,激起投资者的追涨意愿,让投资者相信上市公司受主力的追捧和其股票具有上涨潜力,从而掩盖推升股价的目的。

  对于拉升一系列的运作策划是基于:一方面,并购重组(大黑马产生的摇篮)等题材极具号召力和想象力,极受市场分析人士、基金、其他机构的青睐,股价极易出现飙升;另一方面,要抓住阿基里斯之踵——投资者追涨杀跌的心理弱点,营造赚钱效应,培养和凝聚一批跟风盘,从而为未来出货埋下伏笔。同时,未来推出的政策整体趋好,预示未来股价的上升将来自政策面的支持和配合。

  3、出货思路:通过外资并购、高送配方案、调升股票的评级……一系列的运作,以及利用大盘的走强和公布的正面金融政策……一系列的有利因素,强化投资者的持股意愿,让投资者确信上市公司极具投资价值和股票极具上升潜力,从而达到隐藏出货的目的。

  对于出货一系列的运作的策划是基于:其一,外资并购是中国证券市场长久的投资焦点。外资并购的发展,将从合资、参股、到控股,这将逐步把外资并购炒作推向高潮;其二、推出两次高送配题材(多次送配是大黑马的关键魅力)。股价经过两次除权变成低价股,为股价的上升打开广阔的空间,极易受投资者的关注;其三、未来公布的一系列正面金融政策,将推动大盘向上攀升,以及将强化投资者的持股信心.

  三、联系上市公司配合

  主力运作:要用多少钱?上市公司怎么配合?

  其一、资金计划方面:9000万、8000万、6000万……共计3.5亿元,其中包括吸筹资金、拉升资金和后备资金。……

  其二、公关计划方面:设立关联公司、控股公司和合资公司……1、Xx公司——是由X软件公司设立的关联公司,是证券市场的代言人;Xxx公司——是由上市公司与X公司设立的合资公司,并购重组的代言人。2、Yy公司——是由传媒公司Y设立的控股公司,是证券市场的代言人;Yyy公司——是由上市公司与 Y公司设立的联营公司,并购重组的代言人。3、Zz公司——是由Z生物公司设立的参股公司,是证券市场的代言人;Zzz公司——是由上市公司与Z公司设立的合资公司,是外资并购的代言人。4、W公司——是一家在中国内地注册的私募基金,Ww公司——是一家在英属群岛注册的私募基金,无人知道其背景。5、准备公司和个人证券帐户。……

  其三、融资计划方面:5000万、5000万,共融资1亿元,其中包括债务融资、权益融资和混合融资。……

  运作

  第一步:吸筹   吸筹策略:首先,上市公司公告“中期业绩预亏”,股价随之回落,当下挫至5元底部时,开始分批吸纳,股价随着回升,当回升至6元时,停止吸纳。接着,等待某段时间大盘大幅重挫,股价跟随重挫,当下挫至上次底位5元时,再分批吸纳,股价又回升,当回升至上次高位6元时,又停止吸纳。之后,预计大盘将受重量级的负面消息(上市公司财务丑闻等)影响而深跌,股价随着下挫,当回落至5~5.5元区域时,再次分批建仓,这次股价越过上次高位6元,直到预定6.5 元左右。以后每次股价回落低点逐步上移,每次股价抬高5%~10%。(评述:试想,如果你是散户或大户,经得起这几番“折腾”否?

  这一过程中,对吸筹总量和价格也有所控制:吸筹初期股价为5~6元,中期不高于7元,末期最高不超过8元,吸筹周期为5~7月,吸筹总量不应少于 2000万股,最多不宜超过3000万股,即最低控盘率为40%,最高控盘率为60%,最理想控盘率为50%。在2002年12月31日之前,Xx公司帐户和Yy公司帐户的持仓量达到200~300万股,成为上市公司的前十名股东之一。其余全部使用个人帐户,每个帐户的持仓量不宜超过20万股。

  为了顺利建仓,操盘手还会准备其他策略:不但通过上市公司披露年度业绩预亏、诉讼等利空信息,让市场确信股价还要进一步下挫,令股价回落,然后乘机分批吸纳;而且还通过最近市场受负面的消息影响,借此消息沽穿重要技术支撑位,构筑股价进一步下跌的形态,然后乘机建仓。(评述:看看上市公司和主力勾结到了什么程度!你还怎么敢相信那些预亏公告或者别的公告?但愿这只是个别现象。

  第二步:拉升

  题材配合:第一步的并购重组,主要是剥离不良资产和债务。第一、上市公司将不良资产和负债出售给第一大股东,共获得现金1亿元;第二、上市公司欠银行债务1亿元,解决方案是停息挂帐或保本还息或银企合作;第三、上市公司对其或有负债与**相关公司签订反担保协议。

  制造换庄:在披露“债务重组”信息之前,将股价缓慢推高至12~14元区域,然后以很不标准的强势形态——杯状形态或匙状形态进行整理,直到披露债务重组信息。在披露信息当天复牌后,股价拉升至涨停板,持续推高股价至18~20元区域,然后无量下跌,形成经典理论的做空K线形态的模式,自然市场感觉股价有进一步下跌的势头。在形成经典理论的做空K线形态的的末端,传出并购重组消息——通过香港媒体记者对XXX公司的采访报道,泄露上市公司并购重租消息 ——在这些朦胧消息的配合下,将股价推高至24~26元区域,然后随着大盘下挫而回落。在发布澄清公告之前,股价缓慢回升至前期高位区域25~26元。在传言很盛时,发布澄清公告,大意为:“没有重组意向”或“没有应披露而未披露的信息”,让股价回落至上次底位区域23~24元。(评述:看到这里,技术派人士该大跌眼镜了罢。在这么狡猾的陷阱面前,再精技术也难免要跌倒。)接着,股价经过一二个月的盘整。在盘整末端,通过持续温和放量和拉出中阳的拉升方式,将Xx公司帐户的部分筹码倒入W公司帐户,同时令股价向上突破前期高位,股价创出新高,站稳在27~28元区域。这样W公司成为上市公司十大股东之一。

  备选方案:在盘整期间,股价逐步构筑符合经典理论的做多K线形态的模式——上升三角形或矩形整理形态,形成股价有进一步上升势头的印象,同时配合大盘,通过持续温和放量和拉升越过前期高点,将Xx公司帐户部分筹码倒入W公司帐户,成为上市公司的十大股东之一。

  第三步:再度拉升

  题材配合:第二步的并购重组,主要是股权转让和资产置换。第一、收购公司M和N,分别收购上市公司第一大股东的20%和12%的股权,成为其第一和第二大股东,总计金额为1亿元;第二、上市公司分别收购M和N的下属两子公司的51%、49%的股权,成为其第一和第二大股东,总计金额为1亿元;第三、上市公司并购整合,更名为**软件公司。

  制造换庄:在股价经过三四个月的调整之后,股价再度缓慢走强,将股价推高至上次高位区域27~28元,然后进行很不标准平台盘整,直到披露并购重组信息前天。公告“上市公司股权转让”当天复牌后,股价越过27~28元上次高过,飙升至32~34元,同时减持推高时增仓的筹码。随着,等待某日大盘深跌之时,股价也突然向下无量破位,并形成“三只乌鸦”的K线组合,市场感觉股价有进一步下跌的势头。之后以一巨量长阳重新回升到前期高位32~34元区域,自然形成向上 K线组合的模式,市场自然感觉股价有进一步上涨的趋势。第二天披露“上市公司收购股权”信息,同时减持推高时增仓的筹码,股价逐步回落。接着,在披露年 (中)报“10股送8转增2”的分配方案之前,股价再度攀升,量能持续温和放大,逐步构筑经典理论的做多量价图形,自然市场感觉股价有进一步上升的趋向,突破上次高位34元区域,站稳在元36~37元高位。公布年(中)报高送配方案的当天复牌后,股价大幅高开,放出巨量,同时减持推升时增仓的筹码。(评述:看到这里,技术派人士又该大跌眼镜了吧?

  备选方案:预计近期市场公布利好信息之前,股价进行整理。在市场公布利好信息第二天,公布上市公司更名为**软件公司,然后缓慢推升股价,量温和放大,同时减持推升时增仓的筹码;不仅如此,还等待某短时间大盘走强之日,披露大宗交易信息,“将W公司的持股转让给WW公司”的第二天之后,通过媒体对 Ww公司的追踪报道,揭露该公司是一家在英属群岛注册的私募基金,在舆论的配合下,激起市场对其产生巨大的想象力,然后持续放出巨量和拉出长阳,同时分批减持推高时增仓的筹码。(评述:这个方案,足以把最理智的散户或大户搞晕。

  第四步:出货

  题材配合:第三步的并购重组,主要是出让上市公司和置换股票。第一、与**国际传媒公司洽谈出让上市公司事宜;第二、与几家国际软件公司洽谈出让上市公司事项;第三、公布“**国际软件公司收购上市公司”意向信息;第四、公布“**国际软件公司与上市公司换股方案”的信息。

  制造换庄:股价经过除权之后,在18~20元除权区域振荡整理。在中(年)报又推出第二次分配方案——10股送8的公告之前的二三个月,股价逐渐走出强势双底整理形态,直到公布中(年)报。在公告分配方案当天复牌,股价推升至涨停板,放出巨量,然后逐步构筑经典理论的做多量价图形,站稳在44~46元 (第一次的除权区域为22~23元)区域,同时减持推高时增仓的筹码。

  造势出货:一方面,通过香港媒体记者对Zzz公司的采访报道,向市场透露A、B和C国际软件公司拟收购上市公司的股权消息;另一方面,利用有影响力的证券研究机构,在各大媒体发表“外资并购和上市公司外资并购”系列研究文章;同时,利用有影响力的证券咨询机构,在各大媒体发表上市公司——**软件公司的外资并购的投资价值文章……在这些信息的共同刺激和推动下,以及舆论集中的强大攻势下,推动外资并购板块炒作到高潮阶段,从而激起投资者尝吃禁果的欲望。同时股价逐步构筑符合进一步飙升的技术图形,自然市场感觉股价有进一步上升的趋向,就此出货开始展开。(评述:就此,投资者很容易掉入了主力设下的技术和信息陷阱)

  随着未来大盘一段时间走强的配合,再度传出“**国际软件公司拟收购上市公司”的信息,上市公司辟谣,大意为“上市公司和**国际软件公司有过接触,但双方并没有股权转让的意向,公司没有应披露而未披露”的信息,当天股价复牌高开,拉至涨停,分批出货。接着,预见某段时间公布一系列正面金融政策信息,同时披露“**国际软件公司拟收购上市公司”的意向信息,当天复牌股价高开,然后逐波压低股价分批出货。再相隔一二个月,又披露“上市公司换股方案”的信息,当天复牌平开,压低股价出货。

  操盘手在出货进度和股价方面的操控:初期和中期出货均价为38~40元区域(第一次的除权区域为19~20元),出货率最低为60%,最高为80%,总的出货周期为4~6个月。

  为了顺利出货,操盘手除了既利用有影响力的证券研究机构和证券咨询机构发表看好上市公司的舆论和报告外,还会利用有影响力的评级机构调升上市公司的股票的评级(未来出现的新手法)和股票第二次的除权效应,乘机分批出货。

  尾声

  证券市场是有风险的,因此操盘手针对每个运作步骤都会制定周密的风险控制计划:

  吸筹风险控制:在预定区域吸筹较容易,预示大盘较弱,抛盘较多,应控制吸筹率和吸筹成本;若吸筹较少,预示大盘较强,抛盘较少,应耐心等待吸纳时机;若吸筹不多,大盘已经向下反转发展,应果断先逐步减仓,然后耐心等待时机。

  拉升风险控制:股价推高至预定区域较容易,预示大盘较强,跟风盘追涨意愿较强,推高幅度可以比预先高;若推高较难较低,预示大盘较弱,跟风盘追涨意愿较弱,推高幅度可以比预先低,可分多次推高,同时必须控制拉升成本;若计划失败,预示大盘太弱,跟风盘不多,必须控制好持仓量,应耐心等待下回契机。

  出货风险控制:在预定区域出货较容易,预示大盘很强,接盘踊跃,可以比预定更高位出货;若出货较难,预示大盘较弱,接盘意愿不踊跃,可以比预定稍低位出货,应把握出货契机,控制好出货量;若出货失败,预示大盘太弱,接盘很少,应耐心等待新一轮行情产生的时机,同时必须控制出货进度。

  后记:看完本文以后,你是否可以利用主力的操盘思路、策略和手法,也把主力玩一把?为避免有人“对号入座”,本文已做技术处理

亏钱同水平有关,赚多少看性格

几乎每个股民都以为在股市操作上只有两种行为,那就是“买”和“卖”;事实上有4种:买、持、卖和观望。“持”是“买” 的特殊形式、“观望”是“买”的准备阶段。

  会分析和不会分析的人都会有出错的时候、其给人一个感觉仿佛是会不会分析并不重要。其实二者有本质的差别:前者出错是偶然、后者出错却是必然--就好象有钱人不带钱出门可以凭信用消费,换成没钱人不带钱出门消费试试看?!

  动物有一种很奇特的现象:当一群中的某一只被猎杀时、其余的会疯狂逃命;但在处于被集体“处决”时、“幸存”者却静静地等死。同样的现象出现在股市时是这样的:某一只股票跌了、持有该股的股民可能会认赔离场;但当整个股市狂泻时、绝大多数股民却选择静观。

  愚笨的西方人毫无脑子地接受技术分析、居然赚钱了;聪明的中国人敏锐地揭示出技术分析的种种缺陷、却始终不知道该如何买和卖。

  股市定律:满仓吃进的时候总是大盘向下调整的时候,满仓押的股票经常是涨得最慢的;而对于涨得最快的股票,要么没有买、要么买得最少、要么在大涨之前刚刚出手。

  人真是怪物:在股票上涨的时候总担心它随时会掉下来,在股票下跌的时候却相信它随时会涨上去。

  所得必然会有所失:“抄底”追求的是安全、必然与快速获利无缘,“追高”讲究的是“短、平、快”、万万不可在失败后与“长线”扯在一起。

  相信自己能抄着底的人是傻子,指望自己能成功逃顶的人则是疯子。

  以下两种操作都不可取:一是以为某股票跌不下去而买,另一是因憧憬一旦涨上去的情景而买。

  经常挂在股民嘴边的词是“感觉”--尽管“感觉”总是令他亏钱。

  千万不要标榜自己是凭感觉炒股,因为感觉这个东西既不太可靠、也过于普通--一切能喘气的东西都能有所谓的感觉、可见有感觉不是什么了不起的事。

  技巧这个东西可能是人人都能“看懂”、却未必人人都能“做到”;它虽然只是组合、却经常比制造更难。

  制定规矩的人经常是不需要去遵守的人,规矩制定出来往往是由不懂规矩的人来监督执行;股市里的情况则是这样的:应用某技术分析的人经常比发明该分析方法(或指标)的人在应用该分析方法(或指标)时还要熟练和全面。

  经历和经验绝对是两回事:你可以什么都经历过、但未必注定就因此拥有丰富的经验--尽管经验一定来自经历。

Thursday, October 14, 2010

Make Money With This Forex Trading System

I have been a forex trader since more years. From time to time I still trade, but my trading times have increasingly dropped since I feel its more and more boring waiting for the market to give you a proper signal all day. The main reason why I am writing this article is because I do not like to sit behind my desk all day. So I have decided to give it to all of you who want to benefit from it. Price for my system was three hundred dollars, but due the relativity of success in the forex market I now have decided to give away my system information for free. May the knowledge bring you success and wealth and if you get both in abundance, remember to share it with those around you.

Winning the forex market depends 70% on the trader, the other 30% is the system, so I think it was not fair selling my system even if it has a high probability rate. If you win or lose depends a lot on your personality and feelings so one might lose even if he has the best system in the world. The system was designed during careful analysis of the market in the time of more than six months. It does not need any improving, nor changing. It is fully optimized for trading, so do not attempt to change any indicators or settings! Trade it as it is, demo trade it for at least two months to get a proper feeling of all the indicators and the system altogether. Last but not least, I am not responsible for any financial loss or benefit this information will bring you. You as a trader cary full responsibility for what happens with your money!

Time frame: 5 minutes
Trading time: From EU open until US close
Recommended Forex Pairs: USD/JPY, USD/CHF, GBP/USD, EUR/USD, USD/CAD, AUD/USD, EUR/JPY and Gold

Trend Follower© – Master the markets with correct timing and executing rules

This is not a “get rich quick” scheme. Real efforts are required to learn trading this system. As always try to demo or paper trade the system first before using real money. Trading the forex market has large potential rewards and as such also large potential risks. You must be aware of the risks and willing to accept them in order to place responsible, informed trading orders. It is strongly advised not to trade with money you can not afford to lose.

Introduction

Trend Follower is a trend following system. If you ever heard the saying Trend is your friend, this system will show you the mechanics behind these words. Its unique approach to the market will give you a great understanding of market movements and allow you to see that what happens is not random but an underlying order behind price movement. Through practicing these exact rules with which the system was designed, you will get a more clear picture of the market and begin to reap the financial rewards.

Trend Follower is unique in that it doesn’t attempt to predict the future but rather a tool that helps you to recognize the current trend and lets you go with the current flow. Mastering the system will give you greater peace of mind because you won’t need to keep up with the economical events, trying to figure out the meaning of numbers, or opinions of experts. Unlike most other trading systems Trend Follower does not depend on past performance and should work on every market. Its formulas are not based on pattern recognition and random selection of indicators, but rather a clean understanding and timing of the market.

The system was created from a need not only to trade profitably but also to give the traders a more clear picture of what they are doing and why they are doing it. Many commercial or public system just consist out of indicators without giving a clear understanding of price movement and inform the trader with signals without him knowing why he got the signal and why he should enter the trade. This way a trader will not thrust the method and as a result he will have a hard time being consistent. If you don’t know exactly what you are doing, you can not thrust the system and if you can’t thrust the system to follow the exact rules, you will not be profitable. Trend Follower ensures that the entries and exits are clearly defined and at the same time allow the trader to be able to explain why he took the trade!

Traders are no longer subjects of spikes, volatile markets or rallies that mess up many good systems. Money management is also a very important aspect of the system and you should take a good look at some articles on the Internet or in a book about it, although we have covered exits and entries in the rules section. Without proper money management one is bound to fail in the long term! MONEY MANAGEMENT! Burn these words into your head.

Components of The System

First we are going to take the system apart and provide a little description of all the indicators.

image

The indicators are:

a) Signal Arrows
b) MACD
c) Volatility Channel
d) Laguerre
e) Slope Direction line
f) Pivot Points
g) Guppy Multiple Moving Averages (GMMA)

Signal Arrows

The alert is produced by a cross of two Exponential Moving Averages. Faster EMA is 4 and slower EMA is 8.

MACD Histogram

The default settings are (our system uses 5,35,5) :

* Slow moving average – 26 days
* Fast moving average – 12 days
* Signal line – 9 day moving average of the difference between fast and slow.
* All moving averages are exponential.

The signals from the MACD indicator tend to lag price movements. The MACD Histogram attempts to address this problem by plotting the distance between MACD and its signal line. Because of this, the histogram signals trend changes well in advance of the normal MACD signal. It however should not be used alone, therefore we have other indicators to confirm our signal.

Volatility Channel

This is a technique that measures volatility. It consists of 34 EMA high and 34 EMA low. It is not really a part of the system, but I like to see it, especially if I look for confirmation on longer time frame.

Laguerre

This is an advanced form of RSI indicator. The Laguerre Transform provides a time warp such that the low-frequency components are delayed much more than the high-frequency components. Globally, latest bar data has more weight than previous bar data a bit like an exponential moving average.

Slope Direction Line

The name says is it all. Its a line that measures the slope of the trend and direction as well. The direction is shown as red for a downtrend and blue for an uptrend.

Pivot Points

Traders use pivot points to find intraday support/resistance levels. Pivot points are found by a simple calculation which involves the open, high, low and close for the previous day of any particular stock or index. It is said that when a price hovers below a pivot or pivot support/resistance and breaks up through it then its a buy signal (or vice versa for a sell signal). Or if the prices are above the pivot it is considered bullish and if they are below then bearish. The most common way to use pivot points are as reference points for entering trades if your other favorite indicators are also giving the same directional signal. Market Makers can use the pivot points to create a market by shifting the price around between levels to entice buyers or sellers of a stock into a trade. This can best be seen on low volume trading days as the prices fluctuate between the calculated points.

Many variations exist for calculating the pivot point and its related support and resistance levels. The Traditional Method:

* Pivot point = (H + L + C)/3
* First support = (2 * Pivot) – H
* First resistance = (2 * Pivot) – L
* Second support = Pivot – (H – L)
* Second resistance = Pivot + (H – L)

In our system we mainly use pivots for exits. You don’t need to know these calculations as they are automatically calculated in the software, its more just for informational purposes.

Guppy Multiple Moving Averages GMMA

The Guppy MMA is a combination of moving averages and is optimized to allow for smoother and more accurate moving averages that are not easily spiked by sudden market movements.

The biggest fallacy of basic moving average crossover systems is that they can and will be very choppy when markets are not trending. At the same time when using basic crossovers systems the traders have little or no idea of underlying trend. Is the trend continuing or is it about to end. The Guppy MMA will answer all this questions and will give you the reason why you entered the trade so you can improve on your trading skills.

The importance of this indicator can not be emphasized enough! You must agree with what it is that it is telling you. The original guppy method was created by Darryl Guppy and is called the guppy. The original consists of 3,5,8,10,12 and 15 EMA for the short term moving averages (traders) and 30,35,40,45,50 and 60 EMA long term moving averages (investors).

The time frame is not important with this indicator, in the Trend Follower system we use it in 5 minute markets, but it can be used anywhere from 1m to monthly charts. It is just as accurate in any time frame. In our modified guppy we use 5 different colors for each different type of trader. When you are trading it is important that you know the underlying trend, hence you have to know what other traders are doing. Using the colors you are able to tell what other market participants are up to and as such make better trading decisions.

1. Yellow – short term traders (Mainly going for quick pips and not interested in holding positions)
2. Orange – short term traders (Those hold on the positions a little longer than the yellow)
3. Blue – mid term traders (Mainly swing traders, usually hold on the positions longer than previous 2)
4. Green – long term traders (Will hold on to their positions longer than mid and short term traders)
5. Red – long term traders or investors (They hold on to their position the longest)

The MMA reveals the relationship between short term traders and investors. Traders (yellow and orange) probe for weakness in the underlying trend and always lead the next trend or current trends. As they are going for quick profits, they are in and out of the market very quickly. Investors on the other hand are slow to move. However for a trend to succeed, the support of investors (red and green) is essential.

As a trend trader, you will be looking for situations where all the traders agree on the direction of the market (Yellow, Orange, Blue, Green & Red moving averages). If all the traders are in agreement, then that is the direction to trade. Any disagreement means you do not trade. By correct interpretation of the MMA, you will be able to identify the trend, possible trend exhaustion and also possible trend changes. Overall, you will be able to make better trading decisions.

Breakouts

Though we avoid trading breakouts, the guppy MMA shows us exactly when this is happening. Once a breakout has occurred whereby the yellow lines cross the red lines but the green lines are still below the red, we would expect the yellow lines to retrace back. This is the point where we would be waiting to place our new positions in the direction of the new trend. Please note that you DO NOT place trades during a breakout but after the prices have retraced which is denoted by the green and red lines changing positions.

Long Breakout:

The red lines had been above the green lines then the yellow crossed the red lines and soon the price retraced to the other lines. The green are now above the reds and they show a long trend.

Short Breakout:

The red lines had been below the green lines. This was indicating a long trend. Then the yellow lines crossed the green and red lines. Once the green lines have been below the red lines we can say that we are in a short trend now and we can wait for signals.

Remember the positions of GREEN lines and RED lines. For a trend to be considered long the green must be above the red lines, and for short the green lines must be below the red lines.

The importance of this indicator can not be emphasized enough! You must agree with what it is that it is telling you. The original guppy method was created by Darryl Guppy and is called the guppy. The original consists of 3,5,8,10,12 and 15 EMA for the short term moving averages (traders) and 30,35,40,45,50 and 60 EMA long term moving averages (investors).

The time frame is not important with this indicator, in the Trend Follower system we use it in 5 minute markets, but it can be used anywhere from 1m to monthly charts. It is just as accurate in any time frame. In our modified guppy we use 5 different colors for each different type of trader. When you are trading it is important that you know the underlying trend, hence you have to know what other traders are doing. Using the colors you are able to tell what other market participants are up to and as such make better trading decisions.

1. Yellow – short term traders (Mainly going for quick pips and not interested in holding positions)
2. Orange – short term traders (Those hold on the positions a little longer than the yellow)
3. Blue – mid term traders (Mainly swing traders, usually hold on the positions longer than previous 2)
4. Green – long term traders (Will hold on to their positions longer than mid and short term traders)
5. Red – long term traders or investors (They hold on to their position the longest)

The MMA reveals the relationship between short term traders and investors. Traders (yellow and orange) probe for weakness in the underlying trend and always lead the next trend or current trends. As they are going for quick profits, they are in and out of the market very quickly. Investors on the other hand are slow to move. However for a trend to succeed, the support of investors (red and green) is essential.

As a trend trader, you will be looking for situations where all the traders agree on the direction of the market (Yellow, Orange, Blue, Green & Red moving averages). If all the traders are in agreement, then that is the direction to trade. Any disagreement means you do not trade. By correct interpretation of the MMA, you will be able to identify the trend, possible trend exhaustion and also possible trend changes. Overall, you will be able to make better trading decisions.

 

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Breakouts

Though we avoid trading breakouts, the guppy MMA shows us exactly when this is happening. Once a breakout has occurred whereby the yellow lines cross the red lines but the green lines are still below the red, we would expect the yellow lines to retrace back. This is the point where we would be waiting to place our new positions in the direction of the new trend. Please note that you DO NOT place trades during a breakout but after the prices have retraced which is denoted by the green and red lines changing positions.

 

Long Breakout:

The red lines had been above the green lines then the yellow crossed the red lines and soon the price retraced to the other lines. The green are now above the reds and they show a long trend.

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Short Breakout:

The red lines had been below the green lines. This was indicating a long trend. Then the yellow lines crossed the green and red lines. Once the green lines have been below the red lines we can say that we are in a short trend now and we can wait for signals.

 

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Remember the positions of GREEN lines and RED lines. For a trend to be considered long the green must be above the red lines, and for short the green lines must be below the red lines.

 

False Breakouts

False breakouts can be more easily identified with the Guppy MMA. This also is one of many benefits of this indicator. False breakouts can be financially and emotionally draining to a trader.

If the yellow or orange color lines cross the reds but the green lines still remain in their previous direction, then we are most likely facing a false breakout. For a trend change all lines especially the greens must change positions with the reds. You should especially be careful with volatile pairs such as GBP/USD.

 

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The Rules

Trend Follower – The Rules

All the criteria must be met at the bar with signal or one after! If everything is not met at the signal bar or one after, leave it alone! It might eventually go the right way, but in the long term it will give more false trades. Only take trades where at the signal bar or one after all these rules apply! We enter the next bar after the signal.

Long\Buy

ENTRY: First We wait for a long signal alert
GUPPY MMA: The green lines must be above the red lines! Green, Red and Yellow lines must agree and head north. All the lines must be going in the same direction!
LAGUERRE: Laguerre line must cross the 0.15 from below and head up
MACD: This is important! When you get the signal MACD must be above 0

STOP LOSS: 5 points (+spread!) below recent LOW
ALTERNATE STOP LOSS: 20 points on default pairs and 25 point on more volatile pairs such as the GBP pairs and crosses. Choose whatever SL method fits you best
EXIT (combined): When you open a position you can then choose to close half of the position on the first pivot point and let the other half run till the slope direction line goes red
ALTERNATE EXIT: You can choose your own method and close positions at pivot points or when slope direction line goes red after a move, or when price (a new candle) opens on the other side of the volatility channel

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Short\Sell

ENTRY: First We wait for a short signal alert
GUPPY MMA: The green lines must be below the red lines! Green, Red and Yellow lines must agree and head south.All the lines must be going in the same direction!
LAGUERRE: Laguerre line must cross the 0.75 from above and head down
MACD: This is important! When you get the signal MACD must be below 0

STOP LOSS: 5 points (+spread!) above recent HIGH
ALTERNATE STOP LOSS: 20 points on default pairs and 25 point on more volatile pairs such as the GBP pairs and crosses. Choose whatever SL method fits you best
EXIT (combined): When you open a position you can then choose to close half of the position on the first pivot point and let the other half run till the slope direction line goes blue.
ALTERNATE EXIT: You can choose your own method and close positions at pivot points or when slope direction line goes red after a move, or when price opens on the other side of the volatility channel.

 

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SUMMARY

That’s it, I hope you enjoyed the reading and that it was presented with words easy to understand. May this method help you to be more profitable and better trader.

As the author of this system I reserve all rights for it. You may NOT share any information given here, outside this website. If you want to share this system with a friend you can direct them to this web page where they will find all the necessary information.

 

For suggestions, questions, comments go to our official trend follower thread at forex factory. There you can find more live examples, screenshots and more answered questions from me and then later also from a few traders who have come to master this system. Join us there!

FOLLOW-UP: Trend Follower FAQ

Wednesday, October 13, 2010

Forex: Keep An Eye On Momentum

One of the key tenets of technical analysis is that price frequently lies, but momentum generally speaks the truth. Just as professional poker players play the player and not the cards, professional traders trade momentum rather than price. In forex (FX), a robust momentum model can be an invaluable tool for trading, but traders often grapple with the question of what type of model to use. Here we look at how you can design a simple and effective momentum model in FX using the moving average convergence divergence (MACD) histogram.

Why Momentum?
First, we need to look at why momentum is so important to trading. A good way to understand the significance of momentum is to step outside of the financial markets altogether and look at an asset class that has experienced rising prices for a very long time - housing. House prices are measured in two ways: month-over-month increases and year-over-year increases. If house prices in New York were higher in November than in October, then we could safely conclude that demand for housing remained firm and further increases were likely. However, if prices in November suddenly declined from prices paid in October, especially after relentlessly rising for most of the year, then that might provide the first clue to a possible change of trend. Sure, house prices would most likely still be higher in a year-over-year comparison, lulling the general public into believing that the real estate market was still buoyant. However, real estate professionals, who are well aware that weakness in housing manifests itself far earlier in month-over-month figures than in year-over-year data, would be far more reluctant to buy under those conditions.
In real estate, month-over-month figures provide a measure of rate of change, which is what the study of momentum is all about. Much like their counterparts in the real estate market, professionals in the financial markets will keep a closer eye on momentum than they do on price to ascertain the true direction of a move.
Using the MACD Histogram To Measure Momentum
Rate of change can be measured in a variety of ways in technical analysis; a relative strength index (RSI), a commodity channel index (CCI) or a stochastic oscillator can all be used to gauge momentum. However, for the purposes of this story, the MACD histogram is the technical indicator of choice. (To learn more, see Moving Average Convergence Divergence - Part 2.)
First invented by Gerry Appel in the 1970s, the MACD is one of the simplest, yet most effective, technical indicators around. When used in FX, it simply records the difference between the 26-period exponential moving average (EMA) and the 12-period exponential moving average of a currency pair. (To learn more, see Trading The MACD Divergence and Basics Of Weighted Moving Averages.) In addition, a nine-period EMA of MACD itself is plotted alongside the MACD and acts as a trigger line. When MACD crosses the nine-period line from the bottom, it signifies a change to the upside; when the move happens in the opposite manner, a downside signal is made.
This oscillation of the MACD around the nine-period line was first plotted into a histogram format by Thomas Aspray in 1986 and became known as the MACD histogram. Although the histogram is in fact a derivative of a derivative, it can be deadly accurate as a potential guide to price direction. Here is one way to design a simple momentum model in FX using the MACD histogram.

1.    The first and most important step is to define a MACD segment. For a long position, a MACD segment is simply the full cycle made by the MACD histogram from the initial breach of the 0 line from the underside to the final collapse through the 0 line from the topside. For a short, the rules are simply reversed. Figure 1 shows an example of a MACD segment in the EUR/USD currency pair.

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Figure 1

2.    Once the MACD segment is established, you need to measure the value of the highest bar within that segment to record the momentum reference point. In case of a short, the process is simply reversed.
3.    Having noted the prior high (or low) in the preceding segment, you can then use that value to construct the model. Moving on to Figure 2, we can see that the preceding MACD high was .0027. If the MACD histogram now registers a downward reading whose absolute value exceeds .0027, then we will know that downward momentum has exceeded upward momentum, and we'll conclude that the present set-up presents a high probability short.
If the case were reversed and the preceding MACD segment were negative, a positive reading in the present segment that would exceed the lowest low of the prior segment would then signal a high probability long.

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Figure 2

What is the logic behind this idea? The basic premise is that momentum as signified by the MACD histogram can provide clues to the underlying direction of the market. Using the assumption that momentum precedes price, the thesis of the set-up is simply this: a new swing high in momentum should lead to a new swing high in price, and vice versa. Let's think about why this makes sense. A new momentum swing low or high is usually created when price makes a sudden and violent move in one direction. What precipitates such price action? A belief by either bulls or bears that price at present levels represents inordinate value, and therefore strong profit opportunity. Typically, these are the early buyers or sellers, and they wouldn't be acting so quickly if they didn't believe that price was going to make a substantive move in that direction. Generally, it pays to follow their lead, because this group often represents the "smart money crowd". 
However, although this set-up may indeed offer a high probability of success, it is by no means a guaranteed money-making opportunity. Not only will the set-up sometimes fail outright by producing false signals, but it can also generate a losing trade even if the signal is accurate. Remember that while momentum indicates a strong presence of trend, it provides no measure of its ultimate potential. In other words, we may be relatively certain of the direction of the move, but not of its amplitude. As with most trading set-ups, the successful use of the momentum model is much more a matter of art than science. 
Looking at Entry Strategies
A trader can employ several different entry strategies with the momentum model. The simplest is to take a market long or market short when the model flashes a buy or a sell signal. This may work, but it often forces the trader to enter at the most inopportune time, as the signal is typically produced at the absolute top or bottom of the price burst. Prices may continue further in the direction of the trade, but it's far more likely that they will retrace and that the trader will have a better entry opportunity if he or she simply waits. Figure 3 demonstrates one such entry strategy.

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Figure 3

Sometimes price will retrace against the direction signal to a far greater degree than expected and yet the momentum signal will remain valid. In that case, some skilled traders will add to their positions - a practice that some traders have jokingly termed "SHADDing" (for "short add") or "LADDing" (for "long add"). For the novice trader, this can be a very dangerous maneuver - there is a possibility that you could end up adding to a bad trade and, therefore, compounding your losses, which could be disastrous. Experienced traders, however, know how to successfully "fight the tape" if they perceive that price offers a meaningful divergence from momentum.
Placing Stops and Limits
The final matter to consider is where to place stops or limits in such a set-up. Again, there are no absolute answers, and each trader should experiment on a demo account to determine his or her own risk and reward criteria. (To learn more, see Demo Before You Dive In.) This writer sets his stops at the opposite 1 standard deviation Bollinger Band setting away from his entry, as he feels that if price has retreated against his position by such a large amount, the set-up is quite likely to fail. As for profit targets, some traders like to book gain very quickly, although more patient traders could reap far larger rewards if the trade develops a strong directional move.
Conclusion
Traders often say that the best trade may be the one you don't take. One of the greatest strengths of the momentum model is that it does not engage in low probability set-ups. Traders can fall prey to the impulse to try to catch every single turn or move of the currency pair. The momentum model effectively inhibits such destructive behavior by keeping the trader away from the market when the countervailing momentum is too strong.

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Figure 4

As Kenny Rogers once sang in "The Gambler", "You've got to know when to hold them, and you got to know when to fold them". In trading, as in poker, this is the true skill of the game. The simple momentum model we've described here is one tool that we hope will help currency traders improve their trade selection process and make smarter choices.

Momentum Trading with the Wave and Chart Patterns

It was only after I embraced market cycles that I truly began to understand what to do with all the "lines and levels" I had learned to draw on my charts. Early on as I began teaching myself to trade in the late 1980's to early 1990's, there were not many books available to read about the subject of charting. I found myself gravitating towards price (instead of news) because my mother was a bit of a market timer (although not trained nor conscious that she was indeed market timing). Price and the support, resistance, and trendlines they revealed made sense to me and I ventured into charting armed with my father's old engineering graph paper, drawing my own charts based upon the closing price

I would get from my commodity futures broker. Little did I know it then but work that laid the foundation for my trading and my two books, "Forex Trading for Maximum Profit" (Wiley, 2004) and "Thirty Days of Forex Trading" (Wiley, 2006). It was also during this time I went to college and discovered the books that would forever shape my view of the markets. Books by Richard Schabacker and Richard Wyckoff were like the light I was searching for in my quest to become a trader. What is interesting about the books I read early on was that they were written in the early 1900's and are still as true and applicable today as anything on my bookshelf.
The other pivotal moment in my trading as I alluded to earlier was the introduction of market cycles to my chart analysis. My bread and butter trades are momentum trades, and this is not only my favorite setup, but the one I will share here. So let's first define what this is to me because there are so many definitions of this that I want to be sure we are on the same page. Momentum trading is an entry style that is based upon entering a market as it break out or breaks down from a sideways market. Sideways markets are cycles of congestion or consolidation.

Congestion is typically a wider ranging sideways market with higher volatility and a little more erratic support and resistance levels as compared to consolidation. Consolidation is a narrower sideways market with firm support and resistance levels; that is, the levels have little variance between the highs that make up resistance and the low that make up support. It is during these sideways markets that two of my favorite patterns for momentum trading develop: triangles and rectangles. Both these sideways market descriptions were born of the fact that they were initially discussing the stock market, where there is a buy-side bias. So consolidation is that low volume, quiet channel where a stock is typically bought with little notice. Congestion typically follows an uptrend and is an interesting mix of selling muddled with late-comers to the uptrend who are buying. However since there is not enough interest and money chasing the market higher, the market levels off into a wider range, as compared to the accumulation cycle. Now when talking about markets such as commodity futures and forex, this is not as apparent, especially in the forex market where the buy-side bias is not as prevalent.


Chart patterns are powerful tools as they are the visual embodiment of price action on a chart. That being said I think that there is one distinction that took my analysis of chart patterns to the next level. Early on I would memorize the criteria, as well as nuances, of chart patterns such as my aforementioned triangles, rectangles, wedges, flags, head and shoulders, and rounded tops/bottoms. I would scan charts for hours a day looking for these gems on the charts. Back then, that meant flipping through large, printed, daily charts that were mailed to my home once a week. With pen and ruler in hand I would draw the lines of the patterns I knew. Those were great days - long days. Starting something new is always exciting and discovering charting patterns only to see that my analysis was (mostly) right on was a thrill. But still, I wanted to know what "went wrong" on those patterns that would whipsaw me.


Before entering any market, it is vital that a trader (or investor) know what market cycle a chart is in. Markets travel in one of four market cycles at any given time: accumulation (consolidation), distribution (congestion), mark up, or mark down. Mark up is simply an uptrend and mark down is a downtrend. Here's the next challenge every chartist faces: How to consistently determine
which market cycle a chart is in.

Looking back on price, it's always easy to see what the chart has already done. The key to charting analysis is being able to determine this as a market is trending or as the market is heading sideways. I do this quickly and easily with a simple visual tool I call the Wave. The Wave is made up of three individual 34 period exponential moving averages - one on the high, one on the close, and one on the low. These three exponential moving averages create a "wave" that travels across the chart and by looking at the direction the lines are traveling I can determine if there is a trend and how strong it is. More importantly, the Wave tells me when there is no trend at all. And this is precisely when I look to set up a momentum trade, when there is no trend. The 60 minute chart of the British Pound has a flat, sideways Wave. This gets my attention because now I will look to draw trendlines, support and resistance and see if there is a chart pattern on this chart. I will only use congestion and consolidation patterns like triangles (symmetrical and asymmetrical) and rectangles in the sideways market cycles that I have identified with the sideways Wave. This is a key component to using chart patterns. Congestion and consolidation patterns should only be used in sideways markets.

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It is important to go about identifying chart patterns by finding the building blocks of the pattern. One thing I realized early on is that I don't want to enter trades by looking for the specific patterns, like triangles or head and shoulders. After all, what is a symmetrical triangle but the convergence of an uptrend and downtrend. No matter the head and shoulder's location, inverse or otherwise, what is a neckline but support or resistance? Once all the trendlines, support and resistance levels are drawn on a chart, only then can I look for any patterns those lines and levels may have formed. This is a very different approach as opposed to looking for a specific pattern. Look hard enough at the clouds and your eyes will find a bunny. Look hard enough at the charts with a specific pattern in mind and it will appear.

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It's only after drawing the lines and levels on the chart do I see that a triangle pattern has formed and this is exactly the kind of pattern I like to see when setting up momentum trades. Without this triangle pattern there would be no way to mark and measure the potential breakout or breakdown on the chart. This pattern â€" along with the sideways Wave â€" offers me a momentum set up on this 60 minute chart of the Pound. In a momentum set up I do not carry a bias as to which side prices may break. The point is that there is no trend and that as a momentum trader I am waiting for the momentum to show itself to me. I do however use a confirmation indicator, the MACD Histogram. This allows me to confirm a move after the prices breaks through either the support or resistance level. So when prices finally broke through the support of multiple uptrend lines, as well has support levels, all I have to do is acknowledge the price trigger of the short and then glance down at the MACD Histogram reading. I use the MACD Histogram in an "on/off" fashion so in this scenario, the MACD Histogram simply has to be negative or below the zero line.

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While the MACD Histogram is not much below the zero line, in the "on/off" way I use it, it is negative so the trade is confirmed. As prices break through the bottom of the triangle chart pattern, think about what is really happening: support is giving way. In this case that support is an uptrend line and that uptrend line is half of what makes up this triangle pattern.
One of the challenges of trading support and resistance levels and chart patterns is how to determine that the pattern has confirmed an entry. In my opinion, it is not the job of the pattern to confirm, rather only to trigger. Because I have the MACD Histogram to confirm the pierce through the pattern, I do not have to wait for the candle to close; I can enter at the pierce of the pattern thus optimizing the chart pattern based momentum entry.

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The follow through from a triangle pattern with a sideways Wave is usually swift as momentum trading is like getting on the base of a trend. Consider that as a market cycles from trending to sideway to trending again, a sideways market typically precedes a trend and therefore if the momentum persists in an organized way, the Wave will also shift from the sideway direction and angle upward or downward signaling a shift away from the balance of a accumulation or
distribution cycle to a trend. Momentum traders can be effectively traded by:
1. Identifying a chart with a flat, three o'clock Wave.
2. Drawing all the uptrends, downtrends, support, and resistance lines that are on the chart and see if a congestion or consolidation pattern has formed. (The only time you really need to spend time drawing the lines and levels on a chart is when you see a sideways Wave).
3. Wait for the price trigger. This means that you will wait for prices to pierce the support or resistance levels of the chart pattern, then and only then go to step four.
4. Check the MACD Histogram for confirmation of the price break direction

I will be sharing set ups in my regular column here at TradingMarkets and you will get to follow momentum set ups at work as well my two other set ups: swings and Wave entries. These set ups all start with determining the clock angle of the Wave so that I apply the correct type of set up to the correct market cycle. And while I am thinking about it, there are some rules that can help you get the most from my commentary and set ups.

Raghee's Rules to Successful Trading.
There no escaping that the way you or I live our lives reflects in our trading. If we are aggressive by nature so will our trading. If we are more cautious or tentative in life, we will carry that into our trade. Recognizing who you are is as simple as placing your first trade because you'll see it up close to the minute the trade either goes in your favor or moves against you.
There are a few rules that have helped me become, and more importantly, stay a trader. Trading is my career. It's not simply a good year or two but rather the culmination of all my years managing the risk of being in the market. It's not just the Forex market that makes me a trader either. I trade all markets: stocks, futures, and Forex. If it has a chart and liquidity, I will trade it, if I like what I see. Diversification to me means that I do not limit myself to one market or even one style.

Let the charts dictate your stop losses and profit targets.
You now have learned how to begin using trendlines, support, resistance, Fibonacci Levels, the Wave, "psychological" numbers etc. to determine where your entries and exits should be. If the risk to reward ratio are not appropriate for your account, neither is that trade set up. (Deciding upon the risk to reward ratio requires that you know at what price level your entry, stop-loss, and initial profit target will be placed. The distance between your entry and stop-loss is considered your "risk" while the distance between your entry and initial profit target is your "reward".) The market doesn't care if you are using a percentage or fixed point stop-loss,
these have no bearing on where the market is most likely to move to next, like support and resistance levels do. If once you have set up your trade, you see that the nearest chart-based stop-loss is too far away for your account to absorb, move onto another chart and the next trade. Just remember you must know your stop-loss level and profit targets before you enter the trade.

Recognize, React, Repeat. This is what you want to do each day as a trader. Much of your time will, and should, be spent recognizing the set ups. By doing this you are also training your eyes to see the difference between good, better, and best trades. The first decision is whether you have a momentum, swing, or no set up. The last one being the most significant distinction! Once you recognize what you see on the charts as one of the set ups, the next step is to react. Reacting means deciding upon the entry and exit levels that correspond with the set up and as we know for momentum trades we look for breakouts and breakdowns. For swing trades we are looking to buy pullback in an uptrend and short bounces in a downtrend. Finally, we seek to repeat this process as consistently as possible.

Exit at each predetermined profit target.
We want to exit when we can, not when we have to. I will place my order â€" entry or exit -- as the market nears my predetermined level or anytime I have to step away from the computer. There is no hard and fast rule for entries. I will sometimes leave a standing Limit Order and other times I will enter as I see my price. For stop-losses and profit targets, I will always leave standing orders, always! Regarding profit targets: If a typical trade for your account size is two lots then by the second profit target, you will be flat. One way I decide how many lots I will enter with is to see how many profit targets total I can see on the chart. Sometimes there are five and six targets, other times there are only two or three. Of course, this falls second to what is right for your account size. And that leads me to the next rule.

Margin accelerates yours winners and losers.
There's a saying in motorcycling: "Any Gomer can twist a throttle". Anyone can push the limit, but it's few and far between that you find someone that can bring it back. If you continually trade beyond your capabilities and risk capital,you will lose. When you trade Forex you are typically trading 50:1 or 100:1, and I've even seen 200:1. While you can make huge profits, always consider that if the market went against you, you would lose at the same rate. Margin makes everything move faster and the more margin, the faster is goes. I've seen new riders on motorcycles that had no business being on a bike with that much horsepower. The lucky ones had a few scares and learned from it. The unlucky ones pushed the limit and never could bring it back.


So what's the answer? We know that trading, like motorcycling, can be a high- risk activity. Just a like a new rider should
learn the art of riding a motorcycle on a smaller bike with less horsepower, so should a trader begin with a mini account. I love the idea of mini accounts. Almost all brokerages offer these types of accounts. Here's how they work:
You can trade all the majors in a mini account. The lot size in a mini is 1/10 the size of a full size lot and the pip value is $1 versus $10. Once you have learned a methodology, back-tested it, and acquainted yourself with an execution platform, your next step is learning what it's like to trade with real money. With a mini account you can benefit from real market action, the nerves, fear and greed that accompany it, and still not lose your shirt. At $1 a pip you can make plenty of mistakes (and you will!) without falling into a financial abyss.

Forget paper trading. It is absolutely worthless as a trading substitute. If you wanted to acquaint yourself with an execution platform and practice order execution, fantastic! Go ahead and paper trade. If you wanted to test a new trading idea, great! Go ahead, back-test and paper trade the idea. If you want to see how you can trade with an established methodology, use a mini account. You will never be able to recreate the feeling of being in a real money trade with paper trading. When you trade with real money, even in a mini account, you will still feel the burst of adrenaline when you enter a trade, the exhilaration when you are making money, and the pit in your stomach when you are losing. These are all kinesthetic reactions to a visceral activity. When our money is on the line, we are emotionally invested and we pay better and sharper attention to what we are doing than if the trade was taking place in the "land of make-believe".


Even now, I always keep a mini account open because if I find myself on a losing streak (or I want to experiment with a new trading idea), rather than retreating from the market completely, I will review my errors and make my comeback…using my mini account.

Draw trendlines, support and resistance rather then looking for specific patterns. If you are looking for a specific pattern you will find it on the charts. It's like looking at the clouds and seeing a bunny…we see it because we want to. Find all the lines and levels on a chart and if a pattern is there you will see it.


Find the trend before you enter any trade.
The scanning step of each trade set up is when we check for trend direction on each of our time frames. The "Prep Work" step is vital for this very reason. Finding the trend is directly related to the type of trade you will set up. The Wave is the best way I have found to make sure I am in the ideal environment for a momentum or swing trade. When I am swing trading, I want to see the Wave traveling at noon to two o'clock for buying opportunities and the Wave traveling at four to six o'clock for shorting  opportunities. When I am momentum trading, the most ideal Wave direction is sideways or three o'clock. There will be occasions that you will see your trendlines, support and resistance forming momentum trading patterns like triangles and rectangles, yet you may have an up or down trending Wave. In these situations you are getting mixed signals and your best course of action is to look at another time frame to see if the signals line up more clearly with either a swing or momentum trade.

Use your "and's" your "or's" to plan your trade.
Any trade is a process of asking and answering questions. We want everything to be right when we enter a trade. It reminds me of what my husband taught me about fishing. I love to go fishing…if I got the Internet on our boat I'd probably never come back to shore. Sure you can go out and try to catch fish but you won't necessarily catch anything just because you dropped your line in the water. It's best to know what you're fishing for and have the right bait and be out at the time of day the fish feed and in the right water temperature and fish with the tide. Basically you want to put as much as you can in your favor so you're in the right place at the right time. Great fishermen do this, so do great traders. They line up all the "ands". If one or more of the things we look for change, it can affect our plan and results. For example, we would not go fishing (or we would be less likely to catch fish) if the water temperature is too low or the tide is wrong or the bait is wrong or the barometer is dropping.


Don't chase a trade.
When we trade a twenty-four hour market we will find ourselves missing entries. It's inevitable because we must sleep, go out, eat dinner, etc. While we don't chase a market, we will use our charts to find the next best way to enter the trade. Those levels could be based upon Fibonacci Levels, the four candle average entry, the Wave or even psychological price levels. If we
don't get our fill at the specified price, we move on. However, since we have learned to set up both momentum and swing trades, we can use both to help us out. For example, if we missed a momentum entry and a trend develops from the initial breakout or breakdown, we can look to see if we can get a swing set up.

Be thankful. We live in a time that we have instant access to the markets, quotes, and charts. We have governing bodies that regulate the markets and brokerages. We live in a time that all the tools that allow us to be traders are accessible from our homes. Be thankful for all the opportunities on the charts and in your life.

Raghee Horner is a trader, author, and money manager. Her two books, "Forex Trading

for Maximum Profit" and "Thirty Days of Forex Trading", published by Wiley and Sons, are
both bestselling titles. Raghee offers automated charting software and courses at www.raghee.com. She is also lead trader for www.gotforex.com.

How I Use Momentum In Forex Trading

The Momentum Box

Often times there is a pattern in our current trending markets whereby the pairs consolidate for quite a period of time after a series of impulsive/trending moves. When this happens, as the markets get bottled up between a floor and a ceiling, you often see what I refer to as the 'Momentum Box'.

This is where the 12-period Momentum indicator gets boxed up as well between a floor and a ceiling. This setup becomes an opportune time to help us forecast when a legitimate breakout is occurring, how to trade it, and when to exit the position.

Looking at our first chart, figure 1 is the EUR/USD on the 1hr chart. For now, concentrate on the 48+ hour price action hemmed within a 190 pip range on the pair as delineated by the two white horizontal lines on the chart. Now also take note how the momentum indicator got hemmed into a tight range or 'Momentum Box' as well during the same time period. When the momentum indicator gets confined in such tight parameters, its telling you the internal momentum for the pair is clearly weak and that the order flow behind such price action is neither favorable for a bullish/bearish move.

EUR/USD Chart

Essentially, the order books are about fairly even and the institutional players are deciding upon the next move but have not placed their bets at that point. This is where the box and the momentum indicator can tell us when the range is going to break and how to trade the move. This method is also generally applied to the 1 hour chart but can be applied to daily time frames as well.

Remember, currency pairs are like humans - they do not like to be caged in small spaces for a long period of time. As it stands, the EUR/USD is averaging about a 230 pip range from top to bottom on any given day (via the ATR). Now mind you, the two day range this pair was hemmed in was about 195 wide. This generally creates a cabin fever for the pair and the resulting breakouts are usually forceful. In essence, this two day range which was 20% smaller than the pair normally moves on a single day. This is like living in a lower Manhattan studio apartment you bought for 300k. Anyone living in such circumstances would go batty or never come home since they would be living, eating, bathing, and sleeping in a virtual closet.

The point being made here is the market usually busts out of these shackles, and embarks upon a powerful move. The momentum box in these situations is great to get us in and out of the trade.

So looking at the figure above, we can see the two lines the momentum indicator was also hedged between. Generally, I require two peaks and troughs in place for it to be an official box. Once I have these parameters, I wait for the momentum indicator to spill out of the box.

Momentum is generally a leading indicator, and will often move before price action does. Figure 2 shows us below how the price action finally broke and closed out of the range, but one candle before, Momentum has spilled out of the box telling us a breakout was in play.

EUR/USD Chart 2

How to Trade This

Looking at figure 3, we will see the same chart with an additional indicator, the 14-period ATR on this 1hr chart. The general method is this:

Once you have your boxes in place and you see the momentum spill out, we want to apply one more filter to qualify the trade. Using the ATR in combination with the momentum, you will want the following changes within the two indicators. First, you will want momentum not only to be moving in the direction of the breakout, but at least have an approximate 25% adjustment in the momentum reading. The hour before the price broke and closed outside the range, the reading was at -.0102 and the reading on the breakout was -.0134 (about 30%).

Second, you will want ATR to be increasing by at least 5%. Eight percent is better and above 10 is really good confirmation. The reason for wanting an ATR increase is if its a legitimate breakout, volume and volatility should be increasing by at least 5%. If its decreasing, the breakout is unlikely to produce something significant because the order flow is not behind it. When order flow increases in one particular direction, the ATR should increase with the newly added order flow. The hour before it broke out, the ATR was reading .0045 (about 45 pips per hour) and after it broke was posting .0048 clocking in a 6.67% increase. When we have such a confluence between the Momentum Box break, 25% change in momentum (aligned with the direction of the move) and the +5% increase in the ATR, we take the trade with two lots on the position. We have two methods as to how to get into the trade.

EUR/USD Chart 3

1) Take a two lot trade in the direction of the break, and place your stop about 15 pips on the opposite side of the 20 EMA (more aggressive) or

2) Wait for a retest of the previous floor and wait for it to become resistance via a role reversal (more conservative) and place the stop at the same level This is vice versa for a breakout to the upside.

Our initial target should be 51 pips whereby we bring the stop to free/break even and trail the second lot. We can trail the second lot using a couple of options as well.

1) Trail the second lot with the 20 EMA and the first candle to close on the opposite end of the 20 EMA is an exit signal for us on the close of such a candle.

2) Ironically, we can use the momentum indicator and the original Momentum Box as our exit. Looking at figure 4, we see the original lines for the box. When the momentum indicator pierces through the opposite end of the box from the break, we exit the position. Thus, if it broke to the downside, we look for momentum to pierce the upper part of the box. Once it does, we exit the trade on the moment it breaches it. Coincidentally, this happened on the exact same candle as the 20 EMA breach.

EUR/USD Chart 4

Pick your poison.

Pairs to trade this on, I recommend only using this on the following pairs; EUR/USD, GBP/USD, USD/CHF. You can try it on the EUR/JPY and GBP/JPY since they have sufficient volatility to produce big breakouts. Generally, we would want 24 hours or more of consolidation which would represent three sets of order books between London, New York and Tokyo sessions. The longer the consolidation, the better.

Again, think of the 300k lower Manhattan studio apartment.

Chris Capre is the Founder of Second Skies LLC which specializes in Trading Systems, Private Mentoring and Advisory services. He has worked for one of the largest retail brokers in the FX market (FXCM) and is now the Fund Manager for White Knight Investments (www.whiteknightfxi.com/index.html). For more information about his services or his company, visit www.2ndskies.com.

Momentum Trading is Not Trend Following

Momentum Trading is Not Trend Following

To some traders trend following looks like an offshoot of momentum investing. But the truth is, although they appear similar, in reality, they are poles apart.

The Similarities:

Both approaches are disciplined forms of investing with a focus on price, a focus on trends, and a focus on when to exit. Both buy on the upswing, and sell on the downswing. Both cut their losses. And that is where the similarities end.

The Differences:

Momentum investing relies on predictive fundamental analysis: Momentum-style investing relies on earnings momentum in selecting and shedding investments. It?s a bottom-up style that looks at fundamentals first and foremost, concentrating on sales, earnings, etc. By looking at fundamentals first, momentum investors trip up. Predicting and timing buys, sells and shorts from changes in the fundamentals, whether these changes are interpreted as positive or negative don't pan out. Crystal-ball forecasts never do. The arbitrary periods momentum investors use to predict earnings, sales and all other fundamental nonsense don?t guarantee what an investment will do tomorrow -- whether these periods are measured in years, quarters, months, days, or even minutes.

Momentum investing looks for earnings estimates: Why even bother with earnings at all? All of the statistics, all the increases and decreases from the prior quarter and year, all the estimates from analysts, constantly revised, and all the whisper numbers are simply relative. They are numbers that can be manipulated over and over again to mean anything one wants them to mean. You?ll hear one set from a company?s CFO, and a different set from competing analysts at big brokerage. The media reports all of them and then the talking heads chime in with their spin. Trying to obtain the truth about earnings is like playing the old telephone game where a chain of people whisper a sentence to the person next to them and it comes out something completely different at the end of the game.

And real earnings estimates don't exist: There is little truth in the earnings numbers you hear about. The estimates are padded to keep investor expectations high--or conversely, low-balled to keep investor expectations low. Even when the real earnings number comes out, it is revised again a month, a quarter or a year later. Real earnings numbers are like real economic data. Chances are the data has been revised again and again to reflect whatever the current administration wants you to believe about the economy during that particular period of time. The data is usually negative for the opposing party and positive for the party in power, and therefore, no different from a company?s earnings statements. Once again, if the price is the key, why bother with all the rest?

Momentum investing Involves mind games: Investors--both individual and institutional--have gotten so wise to the unreality of earnings estimates that they often take up for down and down for up, so that a game of double or even triple reverse psychology ensues. Using fundamentals, investors play mind games trying to discern what?s really going on. Mind games don?t generally make people any money, although if you want to play them, be our guest. However, if you want to make money and keep on making money, avoid the mind games and figure out what you must be focusing your attention on ? which is price.

Trend Followers look at price: That's the major difference between the two approaches. Trend Followers ignore predictions, whatever they are based on. Year-over-year or quarter-over-quarter changes in sales and earnings are meaningless to a trend follower since these fundamentals have no bearing on what a price will do tomorrow. How different is that difference? It makes all the difference. Momentum-style portfolios and investors have tanked while Trend Followers over the long haul outperform.

Trend Followers cultivate patience: Unlike momentum investors who are constantly moving, buying and selling in the market every day, Trend Followers can wait months, even years, before making a move at all. They don?t even need to know the name of the market to trade it. They look for the price trend and buy long on the upswings, and sell short on the downswings.

Trend Followers focus on size: While momentum investors concern themselves with fundamentals, Trend Followers concern themselves with the size of their trades. They manage their capital for every move. In so doing, they limit risk when the trend changes. Their discipline keeps their increases exponential, while their decreases gently taper off. Like blackjack, the size of the bet matters. Tailoring the size of the bet to the trend--up with up-trends, down with downtrends--keeps the Trend Follower in the game, with capital to invest tomorrow.