"The secret of understanding trend progression
is this: Classic trend activity is interspersed with deviations from
that classic trend activity. This characteristic. is normal and natural
for markets." Trading
Strategies 101A
"Simply stated. . .Trends that run counter
to the next larger timeframe tend to be abortive....Overcontrol of larger
timeframes on smaller is something most one-dimensional technical analysis
misses altogether. We can exploit this information by..."
see Trading Strategies 101A
"Positive trade expectation occurs when
the perception of the probability of a price event diverges from its
actual probability. An example..." see
T rading Strategies 101A
"The absolute value, and hence the true
worth, of a given price pattern is the product of the intrinsic value
of that pattern modified by context..."
learn more in Tactical Entries 201
"The Kill Zone is the area where price
achieves 90 to 100% of its maximum estimated range potential. I call
it this because any rally into this area can..." see
Trading Strategies 101B
"Signal price action is based on
the principle that any directional thrust (effort) should be followed
by confirming price action (or results)." Trading
Strategies 102
"Simply put, event resistance is
the tendency of a market to find support or resistance at specific price
levels where...." see Trading Strategies
102
"True risk in a given position is the
dollar risk multiplied by the probability of your stop being hit...A
badly placed stop with a small nominal risk may present a much greater
true risk to your trading capital." Trend Dynamics,
Nov 1995
"More specifically, we can quantify the
selling or buying pressure any given penetration. . .implies by assessing
the value of the line continuation as it pushes through the a pivotal
point of change. Line continuation is... "
defined in Tactical Entries 201
"Line tenacity defines price resilience.
This resilience suggests that the optimal liquidation necessary for
a market to regroup and mount a new offensive may be much more shallow
in price (and shorter in duration) than we might normally expect." see
Trading Strategies 102
"The first important principle of strategic
money management. . .is this Overestimate the future probability of
encountering zero-trend [trendless] environments." Tactical
Entries 202
"Do not add parameters and filters to
a trading model unless the added value is significant and the risk of
truncating profits seems negligible. In general, be reluctant to restrict
a trading plan's freedom." Developing
Trading Plans 301
"Most trading models fall into one of
two categories: those designed to forecast, and those designed to make
money. Obviously a trader who wants to make money needs to distinguish
between them." Trading Psychology 301
"What has been shown to be useful in study
after study is that standard deviation, the dispersion or variability
of returns, is a useful measure of inherent risk." Trading
Psychology 301
"The profitability of virtually every
swing (not day) trading method or system I have encountered over the
last two decades is dependent on the rare explosive trend. Trend
Dynamics is not.... Even in a nontrend environment, Trend Dynamics
principles work because..." see
Tactical Entries 202
"The degree of negative or positive variance
around [the] mean is determined by two factors: the degree of discontinuity
in the information flow and a long-term trend factor." Tactical
Entries 202
"The degree to which we can trade at stable
win-ratios above 50% is limited by the average percent win we seek....There
is an indirect relationship between win-ratios and the average percentage
win." Tactical Entries 202
"Differentiating between valid trend changes
and short, meaningless range expansions is a trading problem that must
be solved by every trend-based trader in all markets. The solution is
found in Developing Trading Plans 301