High probability trading strategies pdf free download

The bond market became choppy with short swings up and down. This decreased rateof-change and choppy market would force any price momentum indicator to become bearish. It would be nice if we knew in advance when a market was going to go into a trading range or slow down a trend, but we can never know this in advance.

We are always trading on the right-hand side of the chart after the last bar, which is the unknown side of the chart. We can only use the information available as of the last price bar to make a decision. The strategies will all have worked great after the fact. But you will never know in advance when to use the so-called trading range strategies because you can never know in advance if a market is going to begin a trading range.

During periods 3, 4, and 5, the weekly momentum and price trended together. The first daily bond chart Figure 2. Bonds made two daily momentum bullish reversals below the overbought zone during this period. The momentum bullish reversal made in the OB zone is not numbered. You will learn later why we ignore momentum bullish reversals in the overbought and momentum bearish reversals in the oversold zones. Since the higher time frame weekly momentum is bullish for this period, only daily momentum bullish reversals would be potential long trade setups.

The weekly momentum turned bullish the week ending May The first daily momentum bullish reversal on June 10 was made almost three weeks after the weekly momentum bullish reversal.

For this three-week period, bonds continued the bear trend. If a trader only looked at one time frame, in this case the weekly momentum, a bullish momentum setup would have been made although the bond market continued to decline. This is an excellent example of why you must always consider at least two time frames of momentum position before even considering a trade. Both smaller time frame daily momentum reversals were followed by a strong advance. There was one additional bullish momentum reversal between points 1 and 2.

Why is it not considered a setup? It was made in the OB zone. A smaller time frame momentum bullish reversal must be made below the OB zone to be a valid setup. If the momentum bullish reversal is in the OB zone, the upside should be very limited and you will want to avoid a long trade. That was the period when the higher time frame weekly momentum was bearish, yet price was sideways to marginally up by the end of the period. If the higher time frame weekly momentum is bearish, only short trades would be considered following daily momentum bearish reversals.

The first daily momentum bearish reversal point 1 on the daily chart was made on a wide range down day which ended up being a swing low. Would this be a losing trade? They meet the minimum conditions to consider entering a trade. Specific trade entry and stop strategies will be taught in a later chapter. Regardless of the time frame you trade, a trade is not entered until a bar high or low is taken out following the smaller time frame momentum reversal.

Daily bearish reversal 2 was made on the swing high bar followed by a sharp decline. Nice setup. Daily momentum reversals numbers 2, 3, 4, and 5 were all made within a bar or two of a swing high and followed by very tradable multiday declines.

Nothing could be further from the truth. A complete trading plan depends on more factors, including trade entry, stop-loss, exit strategy, multiple units, acceptable capital exposure per trade, and more. All I want you to learn at this point, until it becomes second nature to you, is that a trade setup is made following a smaller time frame momentum reversal in the direction of the larger time frame momentum.

This is a completely objective, logical, and practical strategy for high probability, low capital exposure trade setups for any market and any time frame. Trade setups are not trade executions. Trade setups are simply conditions that must be met before a trade is considered. During this bond weekly period, bonds were essentially in a trading range, making nice swings up as well as down.

The daily momentum made bullish reversals within a bar or two of each price low. However, because the higher time frame weekly momentum was bearish during this period, only short setups would be considered.

We could make a ton of money with a trading range strategy. Wait a minute! The third weekly momentum trend was bullish from the week ending December 23 through the week ending February 18 Figure 2. During this higher time frame weekly bullish momentum period, the smaller time frame daily momentum made two bullish reversals. Each was followed by a strong move up. You will learn how to choose the best settings for any indicator later in this chapter. Those also come later in the book.

During this period between the weeks ending February 18 and April 8, the smaller time frame daily momentum made two bearish reversals. The first daily momentum bearish reversal during this period was made about three weeks after the weekly momentum turned bearish. The market immediately made a minor corrective rally after the short setup. The second daily momentum bearish reversal was made just one day after the swing low in March and would have also resulted in no trade or a loss, depending on the entry and initial protective stop strategy.

No matter what your trade strategy, this can happen. I could have picked a series of well-chosen examples that worked flawlessly every time, but I want you to learn the realities of trading. You never know what is going to happen on the right hand side of the chart. End of story. The daily chart Figure 2. The first daily momentum bullish reversal was not made until about three weeks after the weekly bullish momentum reversal. The daily momentum was overbought through most of this period, which is a typical momentum position in a strong trend.

The first smaller time frame daily momentum bullish reversal point 1 was made just before a price high followed by a corrective decline that lasted several days. It would have been a no-trade or small loss. The second daily momentum bullish reversal was followed by a consistent rally of several points.

I purposely chose this month period for bonds and the weekly and daily data because it illustrates most conditions you will run into with Dual Time Frame Momentum Strategy setups. I could have easily filled the chapter with unlimited examples of ideal setups that always resulted in massive profits, like so many other trading books and educational courses do.

That is not the real world of trading. Yes, there can be some quick and significant gains. That is the reality of trading. Believe it and you should be on the road to success. The purpose of all trade strategies is to identify conditions with a high probability outcome and acceptable capital exposure. The Dual Time Frame Momentum Strategy is a completely objective approach to identify trade setups as just one part of a comprehensive trade plan. This approach is applicable to any actively traded market and any time frame, from position-trading with monthly, weekly, and daily data to day-trading with intraday data.

The principles and application are the same regardless of the market or time frame. There are a couple of important questions about momentum studies and indicators that you should have come up with so far: Which indicator should you use, and what are the best settings or lookback periods to use? The stochastic Stoch indicator is very popular and included in all trading software. The Stoch has overbought OB and oversold OS zones plus a fast and slow line, both characteristics that are helpful for our purposes.

Overbought and oversold are not really good descriptive terms for an indicator that reaches extreme levels, but since these terms are commonly used, we will use them as well. Just because an indicator reached the OB zone at the upper extreme of the indicator range does not necessarily mean that the market itself is ready to turn down. It only means the indicator is near the extreme level.

It will take some history and looking at many momentum cycles for the indicator to determine if price is usually at or near a position to make a reversal when the indicator reaches the OB or OS levels.

An indicator like the Stoch which has a fast and slow line is also helpful. The slow line of an indicator is usually just a moving average of the fast line. The slow line will react more slowly to momentum change.

When the fast line crosses the slow line, we call it a momentum reversal. It warns that the rate of momentum is changing, which is often preceded or followed within a couple of bars by a directional price change.

If the fast line crosses above the slow line, it is called a momentum bullish reversal. If the fast line crosses below the slow line, it is called a momentum bearish reversal. This period had a series of well-defined swings up and down with a bullish bias. The Stoch did a very good job of making momentum reversals within a bar or two of each price reversal, which would make it a good momentum indicator for our purposes. The momentum reversals are not trade signals but conditions that must be met in order to consider a trade.

Do you notice anything interesting about the position of the indicator reversals and the OB and OS zones? However, both lines did not typically reach the OS zone prior to the momentum bullish reversals. Why is that? The trend bias for this period was bullish.

This is a characteristic that you should be aware of. The larger-degree trend bias will affect how the Stoch indicator cycles. The chart has the same Stoch indicator with the same settings as the previous chart. Do you note any differences in how the Stoch cycled with the price cycles in this chart compared to the earlier one? The Stoch hung in the OB zone for much of the trend, only making momentum declines below the OB line on the larger corrections that lasted several bars.

Frequent momentum oscillations were made in the OB zone without a decline to below the OB line. This is a similar Stoch momentum pattern to what we saw on the previous chart, which had much larger corrections during the bullish trend. Even that chart showed a Stoch bias to hang in the OB zone and make relatively shallow momentum corrections.

So it looks like we need to make a set of momentum trading rules for the wide swinging periods with a modest bullish bias and a set of rules for a stronger bullish trend. That way, we can take full advantage of each market condition. At least, that is what some trading educators will teach you: different rules for different market conditions. But as we are well aware, you never know what type of trend is developing on the right-hand side of the chart.

We can never have a different set of momentum rules for bull or bear or trading range, or for volatile or stable markets, or any other unique market condition, because we never know what type of market lies ahead. If we choose an indicator and a particular set of settings, we have to stick to them until we have a very compelling reason to change. The MACD measures the difference between two moving averages and is usually displayed in the indicator window as vertical bars in what is called a histogram.

A shorter bar than a previous bar represents a narrowing range between the two moving averages and a loss of momentum. If a bar is made on the other side of the center line signal line , it means the faster moving average has crossed above or below the slower moving average. Does the MACD hold the momentum secret for traders? The arrows show the momentum bullish and bearish reversals. A momentum bearish reversal occurs when a bar above the centerline also called the signal line is shorter than the previous bar.

A momentum bullish reversal is made when a bar below the centerline is shorter than the previous bar. Each of these situations represents a narrowing spread between the shorter-term moving average and the longer-term moving average, or a decrease in the momentum.

A change in momentum represents a change in the price rate-of-change. Usually it coincides with a change in the price trend, sometimes it does not. Do these momentum reversals represented by the up and down arrows look familiar? They should. Every one of them is within one bar of the Stoch momentum reversals for the same data you saw in Figure 2.

This is no surprise since both are price indicators that represent about the same thing: a change in the rate-of-change of the price trend. The change in bar heights works just fine.

The MACD made momentum bullish and bearish reversals within a bar or two of each minor price high and low. It would have been very effective to identify entry signals during the larger time frame bull trend.

You could just about throw a dart at a list of price indicators and use whichever is hit. I prefer to use an indicator like the DTosc, which is a combination of stochastic and RSI, or a stochastic itself or other indicator that has overbought and oversold zones.

But the MACD or another indicator that you have used and are familiar with can be just as useful. I wish I could give you the quick, easy, and definitive answer to this question. Anyone who tells you there is such an answer is full of beans and, I suspect, has a very high-priced trading course or system to sell you. For any given momentum indicator, there will usually be different settings for different markets and usually different settings for different time frames of the same market. Once you find the best settings for the recent data for a given market and given time frame, will those settings ever change?

You bet they will. And anyone who tells you different is full of more beans. The lookback period is the number of bars back from the most recent bar that the indicator looks at to make the momentum calculations. Why may the settings change? Momentum trends cycle from low volatility and relatively infrequent momentum reversals to high volatility and relatively frequent momentum reversals.

Ideally, we would have a system or indicator that would warn us of the type of momentum cycles that will be made in the future. Unfortunately, no such system exists, any more than there is a system to project in advance when a market is going to be in a trading range or a consistent trend.

So occasionally, we may adjust the settings for an indicator to reflect the most recent momentum volatility. What is the primary variable for most indicators? It is the lookback period, or the number of bars, prior to and including the most recent bar the indicator will use to make its calculations. The current value of any indicator is the relationship of the last completed bar to the lookback period. Everyone is familiar with a simple moving average.

It is the average price of the past x number of bars, usually the close. The lookback period is the number of bars used to calculate the moving average. A longer lookback period will be less sensitive to price change than a shorter lookback period. It will take a longer period of recent momentum change to influence the longer lookback period momentum indicator. The upside to the longer lookback period is there should be fewer false reversals made by short-term momentum changes.

The downside of the longer lookback period has the potential for a lag between price and momentum reversals; price may have made a reversal several bars before the momentum indicator makes the reversal. Four numbers show in the indicator window. The first number is the raw lookback period while the other numbers are periods the raw data is smoothed. How useful would this indicator have been to signal overbought and oversold positions and price reversals?

Two things are immediately obvious. While the indicator oscillated nicely with the price swings, most of the indicator momentum reversals did not reach the OB or OS zone. If an indicator has an OB and OS zone, we want to use it to our advantage and ideally use an indicator lookback period so the indicator reaches the OB or OS zone most of the time before a momentum reversal is made.

The second important factor is that most of the momentum reversals which are made when the fast line crosses above or below the slow line were made several bars after the extreme swing high or low and after price had moved a significant distance from the high or low.

The day lookback period is probably too long to use for this data because both lines of the indicator usually do not reach the OB and OS zones before a reversal is made, and the lag from price reversal to momentum reversal is usually several bars when price has moved a significant distance from the swing high or low. The up and down arrows show most of the momentum reversals. There are a couple of obvious factors from this data and indicator chart.

First, at the price highs and lows the momentum reversals tended to be made in the OB and OS zones and right on or within just one or two bars of the price high or low. This would seem to make a short lookback period ideal. However, the more timely signals come with a cost.

A shorter lookback period will usually have lots of false momentum reversals, when very short-term momentum changes cause an indicator reversal that is quickly reversed again as the trend continues. Too short a lookback period will produce too many momentum whipsaws.

There must be a reasonably happy medium, and there usually is. What do you notice about this day lookback setting compared to the prior two charts? Of the three lookback periods we have looked at for this data, the day is the best. While the 8-day lookback period usually made momentum reversals from the OB and OS zones right on or within a bar or two of most price-swing highs and lows, it also made a lot of whipsaw reversals mid-range that quickly reversed again.

While the day lookback period was very smooth with no mid-range fake-out reversals, the momentum reversals usually lagged the price reversals several bars, and most did not reach the OB and OS zones. The day lookback period made most of the reversals from the OB and OS zones and within a bar or two of the price-swing highs and lows.

I do the entire analysis and trade strategy for any market and any time frame within three minutes. There are only so many variables and so much useful data needed to make a trading decision. Once you have developed a trade plan, you can very quickly understand the probable position of a market and what the market must do for you to consider a trade.

This has only been one example from a limited set of data. The concept and process is the most important thing for you to learn. Are these settings going to continue to be useful in the future? These guys have probably never actually traded, because I can guarantee there will be periods when market volatility and momentum cycles change and the indicator settings you have been using will be much less useful.

Look at a series of data for any market and any time frame. Test out a few lookback periods for your favorite indicator over two or three different periods of time for the data and choose the most useful settings. Assume that these settings will continue to be useful.

You can never know if the volatility and momentum cycles will change in the future. You have to assume they will continue. If a market changes trend speed and volatility in the future and the best settings you have found in the past are no longer optimal after a few momentum cycles, you may need to shorten or increase the lookback period.

The same settings that were found to be useful for the earlier few months continued to be useful for months after. Near the end of the data shown in Figure 2.

If the indicator made a couple more oscillations without reaching the OS zone on the corrections, we would probably change to a shorter lookback period. It is a quick and easy process to find the best indicator settings for any indicator and any market or time frame, as I have described.

You are not looking for perfection. You are looking for the best fit, and that is as good as it is ever going to get. If you are ever taught by a book or course that there is one indicator and one setting that will consistently make reversals at price highs and lows, drop the book or walk away from the classroom. You are not being taught the truth by an experienced and successful trader.

Trading is like any other business. You have to use the information available, study, gain experience, and make decisions. I wish we had room in the book to put a hundred more examples of Dual Time Frame Momentum Strategy setups, indicators, and their settings.

But this is just one chapter and just one part of the trading plan. It is much more important to understand the principles, concepts, and applications than to see lots of repetitive examples. If you understand the concepts and applications, you will be able to use this information with any indicator, any market, and any time frame.

It is the first filter for a potential trade. It is one part of the trading plan that will have completely objective rules, regardless of which indicator is used. All you have to do is define what is a momentum reversal for the indicator you want to use, and you are set. If the indicator you use has overbought or oversold zones, you will incorporate them into the rules based on how the indicator typically acts and reacts to changes in momentum.

No new long position. Possible short position following a bearish reversal. Short following a bearish reversal as long as the bearish reversal is made above the OS zone. No new short position. Possible long position following a bullish reversal. The first column lists the four possible positions of the higher time frame momentum.

The second column is the trade strategy given the position of the smaller time frame momentum. The Dual Time Frame Momentum Strategy setups are not trade execution signals, but objective conditions that must be met to consider a trade: Row 1: If the higher time frame is bullish and not OB, only long positions should be considered following a smaller time frame momentum bullish reversal.

Two time frames of momentum are going in the same direction. The setup is made immediately following the smaller time frame momentum bullish reversal in the direction of the larger time frame bull momentum. Row 2: If the higher time frame is bullish but OB, the upside should be limited and no new long positions should be taken.

Short positions may be considered following a smaller time frame momentum bearish reversal. If the higher time frame is OB, the upside is usually limited before a momentum high is made, and there usually is not enough profit potential to execute a new long trade.

A higher time frame overbought momentum is not a reason to exit an existing long position—it is merely a reason to avoid entering new long trades. Row 3: If the higher time frame is bearish but not OS, a short position setup follows a smaller time frame bearish reversal.

Two time frames of momentum are in the same direction, and the setup is made immediately following the smaller time frame momentum bearish reversal in the direction of the larger time frame bear momentum.

Row 4: If the higher time frame is bearish but OS, the downside should be limited and no new short positions should be taken. Long trades may be considered following a smaller time frame bullish reversal. These conditions are simple, logical, and very powerful. The 60m data is the higher time frame and 15m data is the lower time frame.

During most of the period of this 15m data, the higher time frame 60m momentum was bearish, as represented by the arrow line pointing to the right. The 60m momentum turned bearish just a few bars before the big pop up.

The 15m momentum bearish reversals would be setups for short position trades as long as the lower time frame 15m bearish reversal was made above the OS zone. There were eight 15m momentum bearish reversals made over about an hour period following the 60m momentum bearish reversal. The second, third, and fourth 15m bearish reversals shown in Figure 2. The first and the last four 15m bearish reversals each were followed by strong moves down in the direction of the larger time frame 60m bearish momentum.

Each would have resulted in great setups for short position day or swing trades. The stochastic momentum turned bearish a few 15m bars before the DTosc did, but the first 15m stochastic momentum bearish reversal was also after the strong pop up. All were good day-trade setups and most were good swing-trade setups. What rules would you setup for an MACD, or any other indicator you are already familiar with and have used for other momentum strategies?

That is your assignment. The principles and process are the same for any indicator. Identify what the indicator activity is that represents a change in momentum, and devise the rules for the four conditions of the higher time frame momentum. Is a change of momentum represented by a fast and slow line crossover? By a higher or lower histogram bar?

By a push above or below an OB or OS line? Now that you know the principles for a Dual Time Frame Momentum Strategy, you can devise the rules for just about any price indicator. Identify minimum conditions that must be met on the two time frames to consider a trade, and you have the first part of a trading plan that will give you an edge in trade setup identification. It may be used with any type of market and any two time frames. A later chapter will teach you specific trade execution strategies to use once you have identified the optimal trade condition.

The higher time frame identifies trade direction. The lower time frame momentum reversals in the direction of the higher time frame momentum are important filters to identify a high probability trade setup. If you have the discipline to consider a trade only when a Dual Time Frame Momentum Strategy setup has been made, your trade results should improve dramatically. To be aware in advance if a market is at or near a reversal gives the trader a huge edge and will be an important part of any trading plan.

T he prior chapter explained how to use dual time frame momentum position to identify the conditions for which side of the market to trade larger time frame momentum and the momentum reversal condition for a trade execution setup smaller time frame momentum reversal.

There is no decision for the trader to make. Simply identify one of the four possible momentum positions bull, bull OB, bear, bear OS on two momentum time frames for the trade direction and trade execution setup. As you also learned in Chapter 2, momentum trends do not always coincide with price trends. A momentum reversal may only represent the slowing down of the price trend, not necessarily a price trend reversal. Most important, a momentum reversal does not indicate where the market is within the price trend or if the trend itself is at or near a reversal.

The pattern position is the second of the four technical factors you will learn that provide the four key pieces of information you will use to make a trade decision. Pattern Recognition Objectives r Help identify whether a market is in a trend or correction.

In this chapter, you will learn the one important guideline that will indicate if a market is in a trend or correction and two simple patterns that will help to identify if the minimum conditions have been met that indicate completion of a trend or correction.

It can be very useful, and by that I mean profitable, for a trader to be aware if a market is making a trend or correction and what the position of a market is within a trend or correction. Figure 3. The last bar on the chart is a wide-range, outside-down day, often a trend continuation signal. It would be, unless the bear trend is in the final stages and about to make a reversal. Is there any way to know if the bear trend is in the final stages?

If there is, we might not be so anxious to take a short trade following the outside down-day trend continuation bar. If the pattern position suggests the bear trend is in a position to be complete followed by a substantial reversal up, we would probably avoid a short position on the daily outside down-day, bearish continuation signal or, at the least, only have minimum expectations for a continued decline and adjust the trade strategy accordingly. On the day following the last bar on the prior chart, which was a wide-range, outside-down day, this market reversed up for a substantial advance.

A wide-range, outside-down day is typically seen as a trend continuation signal. But a short position following this wide-range down day would have been taken right at the low that preceded a significant advance and a losing trade. The last bar on this chart is a wide-range up day, which took out a swing high and closed near the high of the day.

But what if the advance is just a correction to a bear trend? If so, the upside may be very limited before the market reverses to continue a bear trend to new lows. The pattern position may help to identify whether this is the case, which will have an important influence on the immediate trade strategy.

We would be very cautious about taking a long trade if it is a corrective rally with little upside potential and would want to prepare for conditions for a reversal from a corrective high and a short trade to take advantage of a continued decline to a new low.

These are just a couple examples of how helpful it is to be aware of a few simple pattern position guidelines, to help identify if a market is in a trend or correction and whether the minimum conditions have been made to complete the trend or correction. You may have already had some exposure to Elliott wave analysis and become so confused by the overcomplicated approach to cycle degrees, subdivisions, and alternate wave counts taught by E-wave academics that your eyes are already starting to roll around.

Stay with me, because in this chapter you are going to learn a very simplified, practical, and valuable approach to pattern recognition that you will clearly understand and immediately be able to put into practice.

E-wave analysis has been made way overcomplicated by E-wave academics. I know traders who have got bogged down in the paralysis of E-wave analysis for years and never figured out how to use it to make practical trade decisions.

You will learn how to look at any section of data of any market and any time frame and quickly determine if a market is likely in a trend or correction and if the pattern conditions have been made to complete the trend or correction.

You will also learn how and why this information is valuable and how to make it a part of your trading plan. The pattern guidelines I teach for trends or corrections do not involve a complicated counting scheme or getting lost in the paralysis of analysis. You will learn just one key guideline to identify if a market is in a trend or correction, and just three patterns to help identify trend and correction position.

That is all we need to help make specific and practical trade decisions. Identifying patterns is only academic unless we can use the information to make specific and practical trade decisions, which, of course, is what this book is about. This simple piece of information can be very helpful to a trade strategy. The key is to identify if a market is making a correction. If a market is making a correction, it should not take out the extreme that began the prior trend, but should eventually continue the trend direction prior to the correction and make a new extreme.

If the market is making a correction to the bull trend, it should not decline below the March 14 swing low shown on the chart and should eventually make a new high. It would be very valuable to have reliable information if the decline is a correction, because the downside potential would be very limited and the upside following the end of the correction would be very significant.

There is one simple pattern guideline that is very reliable to warn if a market is probably making a correction and not a new trend to a new extreme. If a market overlaps a section, more than likely it is making a correction. An overlap is when a market makes a new low or high, and then trades back into the range of the prior section. The market overlapped, or traded back into, the range of section A, which warned the decline was probably a correction and not a bear trend to new lows.

The next chart, Figure 3. Bars later, the XAU did eventually make a new high as anticipated without trading below the low of the prior trend. This no-nonsense book takes a uniquely blunt look at the realities of trading. Filled with real-life examples and intended for use by both short- and long-term traders, it explores each aspect of successful trading.

Street Smarts Author : Laurence A. Combines 25 years of combined trading experience to teach you 20 of their best strategies. Also covers pattern recognition, ADX volatility, Crabel, gap reversals, and many other strategies. Forex Conquered Author : John L. From trading systems to money management to emotions, he explains easily how to pull money consistently from the most complicated financial market in the world. John packs more new, innovative information into this book than I have ever seen in a trading book before.

With today's markets becoming increasingly challenging, John has cut right into the essentials and brought forward the much-needed tools of forex trading. This clear and well-organized publication is a major step forward in helping traders gain an edge. I would highly recommend Forex Conquered as a valuable handbook for both aspiring and experienced traders alike. There is no fluff here, just the wisdom of a trading veteran that I have always respected-and followed.

John Person provides a professional view of forex trading that readers will be able to use as a guide for strategies and tactics that work. The scope of the book covers more than forex and includes salient aspects of futures and option trading. It should be read and then re-read! In this Credit Spread Options Book, you will discover: - The 8 criteria we use to select the best stocks to write credit spreads - The vital difference between naked and uncovered calls - 10 examples of stock you should never use to trade credit spreads.

Learn why these stocks are so dangerous and what to do instead - How to automatically set up take profit levels so you only have to spend a couple of minutes each month managing your trades - Options Greeks explained in 10 minutes - Exactly what level the VIX should be at before you sell a spread. Ignore everything else, you only need these 3 beginner-friendly metrics to get started - No strategy is risk-free, but on page we show you how to set up your trades to avoid any big losses - How to find the best credit spreads stocks for free.

I will also touch upon other important topics about which traders need to know in order to survive and succeed in futures trading. I think you will enjoy the format of this book: short chapters that are easily comprehended. Too many times in this industry, books on trading have been so technical and complicated that traders find themselves swimming in a sea of market statistics, computer code or mathematical formulas.

You will find none of that in this book. What you will find are important lessons and anecdotes that will move you up the ladder of trading success. You will also discover valuable trading tools that you can incorporate into your own trading plan of action.

There are no short-cuts. This is not a "qet-rich-quick" business. I have read the classic technical analysis books and talked face to face with the best trading professionals in the world. Most agree that, as my friend Stewart Taylor says, "Simple is Simply Better" when it comes to employing successful trading strategies.

All the neural networks and powerful computers in the world won't compare to a good, basic and well-researched trading plan. Don't confuse simple strategies with easy trading.

Features many new technical tools for tracking individual stocks Contains a resource guide, which will help to monitor the market for the trade set-ups discussed throughout the book Reveals how to use ProphetCharts to perform advanced intermarket technical studies and identify the best opportunities Written in a straightforward and accessible style, High Probability Trade Set-Ups covers a lot of ground with respect to this approach and shows you how to use it to make the most of your time in today's dynamic markets.

Use this book as an overview or a guide if you will, for what to study and learn first to become consistently profitable from trading utilizing the high probability techniques in the book. I give you concise information as to what type of high probability techniques to learn and what to look for as far as further advanced information is concerned.

I tell you only the most critical things to learn first because those are absolutely the most important and the ones that will have a high probability of making you money right away if you do them.

Simple, basic and easy to understand, if I can give you one word of advice, I will tell you to keep it simple because trading really is simple if you keep it that way. You do not need any indicators or fancy systems, methods or software that the so called gurus are all touting to do high probability trading.

The market only works on supply and demand and supply and demand is the only thing that moves price on a chart from one value area to another. Beginner traders tend to do what everyone else is doing and study what everyone else is studying thus they have the same results and failures as everyone else and is very low probability, don't be that trader!

I'm not going to sugar coat it, this business is an ugly place for an untrained and underfunded beginner. There are very bad people in the live market who are looking to take all of your money from you, and they will should you not be prepared properly to go to work in the live markets, don't say I haven't tried to warn you.