regarding the eBook I've been working on

    Posted by matt on 25th of Jan 2021 at 12:59 pm

    I started working on an eBook last week with a focus on education regarding our trade ideas and giving you some ideas. By far the majority of that is going to be simply going over chart example after example after example etc.  However, writing this has also taken me down a rabbit hole in describing some general concepts and how far do I go and not go. First off my goal is not to cover what a MA is, what an RSI is, or MACD, or cover the myraid of technical chart patterns (coils, flags, H&S etc) as that stuff has been rehashed 100s or 1000s of times before. However I do have to write about the indicators I use and certain concepts, and that all takes time.  Right now I have about 10 pages of content with just text, and maybe I have another 10 or 20 pages left, with the majority of the rest of content going over actual trade ideas and ways to manage them. Maybe in the end the eBook will be 50 - 75 pages. The thing about writing, it's something you can just simple go through the motions with like solving a math formula, you have to be in the mood, and sometimes ideas flow, other times they do not and it's difficult to describe what you are talking about.

    Also my trade examples have a lot of details on them that I have to refer to, that's going to take a lot of writing. A video will be a very good approach as I can point things out more effectively, however I think it's important to have a PDF eBook anyway so I will plow through it.

    Congrats on the book, Matt.

    Posted by brophy on 25th of Jan 2021 at 02:35 pm

    Congrats on the book, Matt. I had to laugh when I read "you have to be in the mood." You are lucky you are writing for yourself. As an ad writer on Madison Ave. for 30 years, I would love to have told my Creative Director "I'm just not in the mood." But yes, going back and forth between trading and writing requires a different mindset, and not easy to switch back and forth so easily. Look forward to reading it.

    Congratulations.  If is possible to write

    Posted by jmagaia on 25th of Jan 2021 at 01:20 pm


    If is possible to write about breakout trades or use  different time frames...
    Only some suggestions based in what I read in last times, and I think it is very interesting approach.

    Of course the Systems is for another book .

    It is a  pleasure when I see  somebody could  share the knowledge with others. I expect you could sell in Amazon.

    here's a a few paragraphs

    Posted by matt on 25th of Jan 2021 at 01:06 pm

    here's a a few paragraphs from the beginning, this is basic crap but I also think it's important to distill things down to their simplest form as well. also a few images showing some trade examples. don't worry I have plenty of non ideal situations where the stock didn't have big moves where you could raise stops 6 or 10 times but petered out and you were stopped out right away. the paragraphs don't go into detail on the trade setups, simply talks about the market behavior in general  - clearly I go into the 'meat and potatoes' after the initial theory discussions

    Markets ebb and flow, consolidate and trend:

    If you want to distill down the price action of the market or and individual stock into its simplest form, quite simply at any one time the market is either in a consolidation phase or a trending phase, relative of course to the time frame you are monitoring. That information is so elementary, therefore how is that even useful knowledge? When traders and market technicians are looking for objective trade setups, most of the time they are looking for these periods of consolidation, which manifest into a variety of geometric-like patterns that repeat. Remember that periods of consolidation/contraction are followed by periods of expansion.  

    Therefore, many times one of the goals for at trader is to look for these patterns and then acquire a position at or near the end of one of these consolidation patterns/phases so that they can profit from the logical expansion phase.  An analogy one could use would be that of a sprinter who runs a race at full speed (Trend) but then needs to rest (consolidation) in order to regain the energy needed for the next all-out-sprint or Trend. The market and individual stocks behave in the exact same way; a stock will have a big run up, followed by a period of sideways and/or down movement that is very choppy where individual moves (waves) overlap each other.  This sideways consolidation/chop is what builds the energy for the next strong trend, and typically the longer the consolidation, the stronger the resulting trend move will be from that consolidation.  In fact, one of the well-known stock patterns is named with this in mind, it is called the coil or ‘coiled spring’ analogous to the energy that is pent up in the coil and then suddenly released to produce the strong trend move. Coil patterns for example are well known for their ability to produce explosive / strong moves.Just like a coil in your car where its purpose is to store energy for a sudden release of that energy, the same is true for the coil pattern.

    Most of you who are not completely brand new to technical analysis know about these standard or well-known geometrical stock patterns from the myriad of books out there on technical analysis that have been identified over the last 100 years, such as coils and triangles, bull flags, pennants, cup and handles, head and shoulders, clean trendline breaks etc.  All these patterns occur during periods of consolidation. Clearly there are momentum traders who chase a stock that is in a pure momentum uptrend (not a consolidation), however for the most part most technical traders are looking for these high probability geometric patterns that occur during a consolidation phase.

    Refer to the chart of TSLA below for a beautiful example of this repeating cycle of trend, consolidation, trend, consolidation.  As far as high probability consolidation patterns, the chart shows two of them. The first consolidation was broken by a clean breakaway gap on expanding volume, which started the trending move in August.  Once that trend move ended in late August, it was followed by a 2 ½ month long consolidation that resulted in a coil / symmetrical triangle pattern that once broken lead to a huge up trending move. This chart contains a lot of other useful information that I’ll be discussing in future details later one.

    Good knowledge transfer Matt   

    Posted by enawala on 25th of Jan 2021 at 04:22 pm

    Good knowledge transfer Matt   

    Just make sure you have

    Posted by steve on 25th of Jan 2021 at 01:00 pm

    Just make sure you have a chapter for YOLO trading 


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