Stochastic, MACD, Bollinger Bands Plus Day And Swing Traders

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Trading Tips

These trading tips are based on various basic stock market principles.

A stock market principle allows one to build viable trading systems and trade

the financial markets without guessing them.  Instead of giving traders

just trading tips, it is better to share with them powerful financial markets

trading principles that will open their them.  Begin to improve your

technical trading with robust trading tips based on basic stock market

principle.  Get started.

To build a viable trading system, one must build it on a reliable financial market principle.  

The high and low volatility principle is even used by the renowned financier George Soros.  


The high and low volatility principle states that a high volatility price action is often followed 

by a low volatility that ends with a possible reversal.

It means that if there was an expansion in volatility and it ends with a contraction, one must 

be ready to participate in any subsequent reversal.

Note that it does mean that by all means there will be a reversal.  Now, everybody can 

understand the meaning.


However, in practical technical trading, only few can make it work better.  Usually, a better 

approach for using a market principle is to use it in conjunction with a complementary 

market principle.  I will not dwell on that today.


My favorite way to use the high and low volatility principle is during the last segment of a 

multi-segmented distinctive price structures.  For example during the C-wave of flat 

correction or zigzag and fifth Elliott wave.  I also like to use it after a breakout from a 

triangle chart pattern.


The reversal is even more expected if the volatile price-action is vertical (distortion) 

before the price reaches a target zone.


I think I have said enough about the high and low volatility market principle of 

George Soros.

Please, remember to add the mind game to your technical trading when you are using 

that principle.  Try to go into the minds of other market participants after the expansion 

of the volatility.  Volatility often creates fear.  Therefore, it will subsequently affect how 

investors and traders behave.


So this is it the theory of high and low volatility principle. 

For me, a market principle is like an energy that is readily available to those who 

understand it.  However, the result that one gets when one is applying it is positively 

correlated to how one uses it. That is my opinion.


Well, I hope you will find this article useful.
If it is then feel free to share it on social media.

The fifty percent Fibonacci retracement market principle is a very simple market principle that 

helps to find high probability bullish and bearish pivot points.

Anytime the price rises from point A to point B and begins to pull back, one will apply the 

Fibonacci retracements drawing tool from A to B and highlight the 50% Fibonacci retracement. 
Any bullish pivot point above the 50% Fibonacci retracement is a high probability
trade setup as long as the price has not yet
risen above point B. 

Once, one has identified the setup, one will apply a different times frame trading method to 

trade it like a pro.
If the price rises above point B, one will identify a new point A.  The new point B will be the 

point where the price is pulling back after going above the old point B.
One will repeat the same process as long as the price is creating a new point B above the 

previous one.

See the chart

The same strategy is true in a down trend.
This time, the price declines from A to B and starts to rally a bit.  Now, one can highlight the 

50% Fibonacci of that bearish price-action.

On this occasion, any bearish pivot point below the 50% Fibonacci retracement is a high 

probability bearish trade setup as long as the price has not yet fallen below point B. 

The same method is deployed when the price falls below point B and starts rallying up for a 

while after reaching a new point B.
The new point A is usually the origin of the new price action that brought it below the old point B.
One will repeat the process if the breaks below the most recent point B.

Warning

Though, the 50% Fibonacci retracement market principle is valid on all time frames, one should 

not be playing with it too much on the lower time frames because of the market noise.
Finally, be sure to use it on conjunction with the top-down trading method to control the risks.

In a nutshell, the fifty percent Fibonacci retracement market principle is about bullish and bearish 

pivot point on the either side of the fifty percent Fibonacci retracement.

A bullish pivot point above the 50% Fibonacci retracement in an uptrend is a high probability 

trade setup.
A bearish pivot point below the 50% Fibonacci retracement in a downtrend is a high probability 

bearish trade setup.
So there you have it.  As always, I enjoy writing this article.  I hope, it has been useful to you.  

If that is the case, feel free to share it on the social media.

Years ago I wished that I had the ability to trade naked price-action without any technical 
indicator.  That wish has now been fulfilled.  The price-action denial market principle will 
help one to trade the naked price-action like an expert. 

Please do not be fooled by its simplicity.
If I had to keep only one market principle, it will be that one. 

1/ A higher low that follows a lower high is a high probability bullish trade setup.

2/ A lower high that follows a higher low is a high probability bearish trade setup.

In a normal bearish trend, a lower high must be followed by a new lower low.
Therefore, if a higher low follows a lower high, it is a denial of the bearish price-action.  
That higher low is a high probability bullish trade setup. 
If one buys, the first target will be the resistance at that lower high.

A bullish price-action denial occurs when a lower high follows a higher low.  In an uptrend, 
a higher low must be followed by a higher high. Therefore, a lower high that followed a higher 
low is a high probability bearish trade setup.
If one sells using a top-down trading method, the first price target is that higher low.  Usually, 
a technical trader will set the stop loss above the high of the candlestick pattern that breaks 
the common sense trend line.

The market principle of denial of price-action allows one to identify high probability bearish 
and bullish trade setups.
One must a different time frame trading
strategy to time the entry and control the risks.  Never buy or sell just because of the
setup.  In both cases, there was a denial of
the continuation of the current momentum.  Indeed, a denial of a bullish price-action is bearish, 
but a denial of a bearish price-action is bullish.


Elliott wave traders know that there is often equality between the first and fifth waves.  Apart 

from the Elliott wave theory's equality, there are many others. 

The principle of equality states that the price-action is always seeking equality between its past 

structures, forms, patterns.  In other words, there is nothing new when it comes to comparing 

past and present price-actions.  Past and present price structures can be partially or fully equal 

seventy percent of the time.
To spot those equality, one needs is to keep eyes wide-open without blinking.

A pattern can duplicate its past size, shape and form in the future.
Either it is the same structure, how deep the price pulled back or rally or how fast was a specific 

segment of the past price-action. 

One can look back ten years on a higher time frame and take note of patterns, structures and 

scenarios that have already occurred in view to spot the duplications that are likely to take place. 

One can train oneself to the point where one can quickly spot the equality between
past and present price structures.

There could be equality in length or magnitude.  One may note equality is depth of a pattern.  

A may just keep copying and pasting itself into the future.
For example, over the years, one may spot that a financial instrument keeps forming a V pattern 

after a bullish price-action.  So the price rose from A to B then pulled back in V pattern before 

starting another bullish move.  Once that bullish move is complete,  the price pulled back again 

in V pattern and the same process is repeated over and over.