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Bulls And Bears Winners

Who are you in the financial markets?

The majority will say they are bulls, and a small group will not deny that they are bears.  Really it does not matter whether one is a bull or bear.  However one wants to be a bull or bear winner.

How To Be A Bullish Winner

To be a bullish winner one ought to trade above prior highs.  The confirmation of the bullish momentum is the validation of prior highs as support levels.  It does not matter what one is trading, bullish momentum must cause the price to break above a prior high.  A bullish winner is really an expert breakout trader.  He or she must do everything to master breakout trading.

A bull winner understands the true definition of a bullish price-action, and masters breakout trading.  Without those two understandings, one will almost fail as a bull winner.

Another skill of a bullish winner is to know the structure of a bullish trend (motive wave).  With those skills, he or she will know the different stages in a trending phase.  He will able in many cases (not always) to determine the starting and terminal segments of a trend.

A bullish trader who does not recognise the start or end of a bearish trend can be squeezed out of bullish positions.  One does not want to be forced out of many bullish positions. 

A bull winner must also understand both the fundamental and technical bullish forces that work in the financial markets.  This is an essential requirement because one does not want to fight them, but work with them every time.

Bear Winners

A bear winner is a technical trader who trades bearish trade setups below a prior lower low that has been converted into a resistance. 

The ultimate question that a bearish trader is asking is when is the bearish momentum increasing?

Indeed the validation of a prior lower low into a resistance confirms the strength of the bearish momentum.   A bear winner knows that the price rises more often than it falls, therefore is always prudent when selling financial assets.  To manage the risk, a bearish financial market winner also uses the Elliott wave principle to forecast the next price structures.

A bear winner also understands that bullish winners will not hesitate to buy financial instruments with strong fundamentals in a bullish markets. 

Consequently, he or she will always combine technical and fundamental factors before hitting the sell button.  A bear winner often avoids to sell companies with a reputable CEO or that pay juicy dividends on quarterly or yearly basis.

Both bull and bear winners know what their counterparts are doing, and can anticipate their next move in a timely fashion.

Similarly, a bullish trader or investor who does not understands what 
the bearish players are likely to do is susceptible to be squeezed.  The inverse is also true.

Both players also understand when to cut losses and run without being too courageous.
That is all for now because I do not want to repeat myself or write a lengthy article.  Other articles on this site will surely help one to become a fully fledged bull or bear winner.

Conclusion

Bull winners trade above prior higher highs, but bear winners below previous lower low.

The validation of a prior higher high as a support or lower low into a resistance is the first thing that must take place.  Both bull and bear winners are multi-talented market players who understand what their opponents are planning.  Without those skills a bull or bear trader can be pinned down anytime (squeezed). 

Really a bull or bear winner is comparable to an eagle who can spot and grab opportunities without being cooked.
I hope this article will be useful to all.  Please share it if you like it, and say few good words about us on various trading forums.

Happy Trading

This article is written by G Beaulieu
founder of Stochastic-MACD.com