From the Author
My first book, Trade Like the Little Guy focused primarily on risk and a methodology that, if followed, would make you a consistently profitable trader independent of how you trade (fundamental or technical trader). Now I offer you my technical trading methodology with all the ideas of trend qualification, the Trading Cube, anchored support and resistance and more.
Having traded for three decades now and having an engineering background, naturally my desire over the years has been to develop a systematic approach to trading the markets. In this book, I lay out that approach in great detail, first looking at how trend was defined in the past and how I have defined it for now and the future. Part II takes that definition and applies it to the trading world showing you how to implement the methodology.
All successful trading systems have trend at their core. Up until now, all trends have been treated equal. No more. I propose a methodology of how to measure the goodness
of a trend and to use that to your advantage.
From the Inside Flap
Given its undeniable importance to all traders, and its use in most of today's trading tools and systems, understanding the technical concept known as the "trend" is critical to your success—whether you're trading soybean futures in Chicago or a solar energy company in China.
Significant money can be made by following the right trends, and now, in Trend Qualification and Trading, market technician L.A. Little explains how to identify and qualify these trends to determine the likelihood that they will continue and produce better trading results.
By combining price, volume, time frames, and the relationship between the general market, sectors, and individual stocks, Little shows how to measure the strength of trends. Most importantly, he demonstrates how to determine if a trend has what it takes to develop into a major move with greater profit potential.
Divided into two comprehensive parts, this reliable resource focuses on a redefinition of trend through qualification, explores the implications of trend qualification, and examines the practical applications that flow from it. Page by page, it examines the classical trend model as well as a proposed neoclassical model—which provides the theoretical foundation for both the identification and qualification of trends—and then takes that theory and shows you how it relates to the technical decisions of successfully entering and exiting trades.
With qualified trends, a new age of technical analysis has been ushered into the trading consciousness. These trends are apparent in every stock, commodity, and financial trading instrument and have the potential to lead traders down a more profitable path. With this book as your guide, you'll gain a firm understanding of this innovative idea and discover how to incorporate it into your everyday trading endeavors.
So, throw out all those derivative indicators! With trend qualification, swing points, and anchored support and resistance, you can become aconsistently profitable trader.