Link: Assorted Trade Set-up Classifications
The Tyro Trader has been posting a series of articles that detail specific types of trade set-ups from Michael Taylor.
These posts detail the description, market condition, entry, exit, stop-loss placement, dangers, and – of course – examples of the following set-ups:
Gap Close (I refer to them on here as “Gap Fades”)
“Fade to Moving Average” Trades
“Moving Average Bounce Trades”
… and others worth viewing.
Professional traders often say that newer traders – or even experienced traders – need only master two or three set-ups to be profitable in the marketplace. I would say that I have developed experience in approximately five patterns, which I classify as the “Impulse Buy,” “Impulse Sell,” “Bollinger Band Squeeze,” “Sweet Spot in the Data,” and “Fade the Gap” strategies.
I should take the time to classify each of these patterns as thoroughly and professionally as the Tyro Trader, and I encourage traders of any level to study and benefit from viewing the ‘favorite patterns’ from other traders.
Van Tharpe is famous for saying that we can only trade our beliefs about the market. While it is difficult to take favored set-ups from other traders and trade them perfectly from the start, it does benefit us to view the patterns of other traders, and see which ones make the most sense to us, and whether or not we can incorporate some of those strategies into our own ‘beliefs’ and understandings of how we trade the market.
True beginners would do well to classify a variety of ‘trades conditions’ and set-ups to see what they all have in common and which might work best for your own risk tolerance and personality.
View some of these set-ups from the Tyro Trader and think about how you can potentially incorporate them into your growing arsenal.
Thanks for the props, Corey. Now I have the description, it’s time to see if I can trade them 🙂
BTW: I love the names you have for your trades. I think picking colourful names makes them more memorable and what can be better than “Sweet Spot in the Data” or “Impulse Sell”!
Tyro,
Thank you in kind for posting these set-ups on your site. Traders of all experience levels will benefit from seeing them, especially the more commonly occurring patterns.
I do a lot of my work with momentum readings, and intended the “Impulse Buy” to be a somewhat silly yet memorable concept that adds a little fun to the mix. In essence, you wait for a momentum impulse and then ‘buy’ after the impulse has been partially retraced. It’s a classic retracement trade, only predicated with an initial burst in momentum for higher odds of success. It’s actually not the same as going to a store an making an ‘impulse buy’ on something you just can’t live without.
The “Sweet Spot” is akin to the first or actual confirmation price/zone in a newly developing trend. It is the highest probability spot to play for a larger target with greater confidence. The idea is based on basic trend confirmation zones as taught by the early pioneers of technical analysis.
I try to keep trading fun, and adding colorful terms to otherwise mundane concepts helps. 🙂
Hey Corey,
It looks like tyrotrader has disappeared. Any idea if this content exists anywhere else?
Thanks!
Hey Corey,
It looks like tyrotrader has disappeared. Any idea if this content exists anywhere else?
Thanks!