The term “parabolic move” came about as part of trader slang describing a price move that goes up at a high rate of velocity and magnitude on a chart. It’s a chart making an upward price move that looks like the right side of a parabolic curve. A parabolic move happens when the speed and […]
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Ed Seykota is a trend following trader that uses reactive technical analyses through quantified trading signals to capture large profits during trending price action. He has parameters for proper position sizing, volatility filters, and optimizes his strategy for large wins and small losses. Ed Seykota Trading Rules “In order of importance to me are: 1)
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Trend following is the process of using reactive technical analysis to take trades in the direction of the primary chart trend and let them run as far as they will go with a trailing stop. Traditional trend following was developed and used for the futures markets like commodities, currencies, index futures, and others but it
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Trend Following by Michael Covel is the bible for traders interested in learning how trend trading works as a method. This book explains the principles and concepts that you will need to understand for how the best trend following traders made their outsized returns on capital. It will teach you the key principles that the
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Trend following is the process of trading in the direction of the markets price action and staying with the trend until it ends. A trend follower must have a quantified winning process for entering when there is a signal and then either exiting for a small loss when a trend fails to be established or
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“Predictive technical analysis is chart/pattern reading. Trend following, on the other hand, is reactive technical analysis – a diversified portfolio perspective of markets using momentum indicators.” – Michael Covel Trend following is a trading strategy which attempts to profit from long-term or short-term moves in price action that happen at times in financial markets. Trend
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Michael Covel has written an easy to read and understand book entitled “Trend Commandments: Trading for Exceptional Returns” FT Press, that condenses and explains the principles of successful trend followers. This book is based on the author’s extensive 15-year study of the world’s top trend following traders such as Ed Seykota, Paul Tudor Jones, the
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The whole world is simply nothing more than a flow chart for capital—-legendary trader Paul Tudor Jones In my trading I am always looking for where the capital is flowing. Capital flows where it believes it can either grow or be safe depending on the economic environment. Interest rate policies
How do I make money in trading? I seek to profit from market trends. I am a short term trend trader. I seek to be long or short a stock or ETF that is in a trend and has the potential to trend for several days or weeks. I will trade anything that is
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Let me introduce my readers to “Trader Steve” a successful trend follower and blogger from the United Kingdom. He was nice enough to give me an interview for my blog readers. Steve is a trend following trader that pulled off the feat of being profitable in both 2008 as the market was on the
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