Trend Trading Set-Ups looks at what moves the markets (tests) and how you can use the information tests leave behind to find the best trades in the market.
Technical Analysis Today
Trend Trading Set-Ups is a follow-up to Trend Qualification and Trading. It reviews the material and adds more flesh to what was presented in the prior book with respect to qualifying trend and seeing the market as a series of tests. A lot of work was put into trade set-up classifications; what they are; which ones are best; and how to identify them.
The identification process restricts possible trades to just two categories and then provides checklists of what needs to happen for the trade to be the best trade possible.
In life, there are few absolutes while in trading there are none. If you accept that premise then it follows that the best trades are those trades with the highest probabilities, not certainties. Understanding those probabilities across the varied and numerous trading possibilities is what separates this book from all others.
Trading is a game; a game played with ever changing probabilities. As an example, it is generally recognized but greatly discussed that buying a strong stock in a weak market tends to be a less than optimal use of your money. The general market’s weakness decreases the probability that the trading outcome is favorable.
Recognizing that the probabilities surrounding a trade setup are not static but instead vary leads a trader to a very different outcome in terms of how they trade. What it says, in a nutshell, is that not only are all trades created unequally but that there lack of equality varies over time. How much they vary and how you should factor that into your trading is what this book is all about.