6 TRADE SETUPS YOU CAN START USING RIGHT NOW. includes: Ryan's top charting patterns

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Chad Cox
5 years ago
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1 6 TRADE SETUPS YOU CAN START USING RIGHT NOW includes: Ryan's top charting patterns

2 SharePlanner's Top Setups for TRADING LONG & SHORT Far too often we clutter our trading strategy with hundreds of different types of trading setups, opportunities, and vehicles for trading. Many times the barrier that keeps us from realizing trading success is overreaching and attempting to do too much in the financial markets. Don t get me wrong, trading will never be easy, but it can be simple and I m convinced that the simpler you attempt to make your trading the more likely you ll experience the success that you long for. Look to become an expert trader in a few trade setups rather than marginal in many. I ve included in my latest ebook my six favorite setups and how you can profit from them on a consistent basis. These are high probability setups that allow for you to manage risk in such a way that your reward opportunity will be far more favorable than the risk that you are taking on with a given trade. The less complicated and unencumbered you allow for your trading to be, the better you will be from an emotional and psychological standpoint too. Understanding your trading and what makes it work for you is so important, and you can only do that by keeping your trading simple and to the point. In the pages that follow, you will find my three favorite long setups coupled with my three favorite short setups. If you ever have any questions about any of these setups, feel free to me at ryan@shareplanner.com, and I will be glad to answer any questions that you might have. SHAREPLANNER.COM 6 TRADE SETUPS YOU CAN START USING RIGHT NOW 1

3 Trade Setup #1 (Long): THE BREAKOUT This breakout often times sees the quickest gains of any of my setups. Once it breaks out of the coil as shown above, the rapid price increase can leave a trader breathless. However, just as fast as it can go up, it can go down just as fast. Often times what gets most traders in trouble is the euphoria that the trade creates and the belief that the stock will not sell-off anytime soon. This trade must be managed with a very tight stop-loss, particularly after the breakout ensues. If the stock gets outside the upper Bollinger Band, check to see how the stock has performed in similar circumstances in the past. If the stock has shown a tendency to sell-off outside of the upper Bollinger Band, then you should consider selling your position, otherwise, continue to tighten your stop. SHAREPLANNER.COM 6 TRADE SETUPS YOU CAN START USING RIGHT NOW 2

Trade Setup #2 (Long): THE BREAKOUT-PULLBACK This is one of my favorite of all the setups because I can plan my entry into the stock with ease, without fighting for a good fill on my order.

4 Trade Setup #2 (Long): THE BREAKOUT-PULLBACK This is one of my favorite of all the setups because I can plan my entry into the stock with ease, without fighting for a good fill on my order. Also, the stop-loss is usually tight as it situates just below the rising trend-line. The stock tends to be oversold when I get in, which means I won t be dealing with a stock that is exhausted from a run-up in price. Often times the gains made on the Breakout-Pullback is much more than the original breakout in the stock, and much more legitimate as it proves it can hold strong to support. Be patient with the entry, don t buy the stock as soon as support is tested, but wait a day or two to see whether the bulls can show some signs of accumulation of shares, before you finally decide to pull the trigger on the trade yourself. SHAREPLANNER.COM 6 TRADE SETUPS YOU CAN START USING RIGHT NOW 3

5 Trade Setup #3 (Long): THE THIRD-PULLER I have made a career of this trade setup. I believe that the longer a trend lasts, the more tests of the rising trend-line, and the more mature the trend-line becomes, the weaker the support for that trend-line is and the more likely that trend-line will fail. In order to have a legitimate trend-line in place, you have to have a) a bottom that ends the previous downtrend b) a higher-high in price and c) a higher-low in price. You cannot buy a stock on a pullback to a trend-line until you have these elements, because a trend-line cannot exist until they exist. I am not become interested in buying a stock on the pullback to an existing trend-line until the third test of that trend-line. Once that occurs then I will buy a full position with my stop just a shade below the rising trend-line, which allows for maximum reward versus risk. I m not interested in the second test, nor am I interested in the fourth, fifth or sixth test of the trend-line. History has shown me that the third test of the trend-line is the best time to Buy-the-Trend. SHAREPLANNER.COM 6 TRADE SETUPS YOU CAN START USING RIGHT NOW 4

Trade Setup #4 (Short): THE BREAKDOWN This is the sister setup to the Breakout. This stock like its counterpart has a very tight coil in the price action.

6 Trade Setup #4 (Short): THE BREAKDOWN This is the sister setup to the Breakout. This stock like its counterpart has a very tight coil in the price action. Ideally, I prefer it to occur over a one to week period at least. When that happens, the breach in price action is a thing of beauty, and can result in a rapid price decline. There is a lot of instant momentum involved in this scenario, particularly in a falling market, where the setup works the best in. You will want to be careful, as in any trade setup, of the eventual bounce that the stock will experience, and don t try to hold a short position through the bounce either. Be aggressive with the stop-loss tightening it as the stock drops in value, and quickly take gains once at the first sign of a short-term bottom being formed. Your stop-loss placement should be above the coiled resistance level, if it doesn t create too much risk, otherwise, you may want to look at the thirty-minute chart for a closer stop-loss. SHAREPLANNER.COM 6 TRADE SETUPS YOU CAN START USING RIGHT NOW 5

7 Trade Setup #5 (Short): THE BREAKDOWN-BOUNCEBACK Save this stock for a downward trending market. It won t work nearly as good in a bullish market. When the market is experiencing a dead-cat bounce, look to short stocks as they rise into key resistance. In the chart above, you can either short on the re-test of declining resistance, or you can wait until it re-breaks support at which point you can stage your short position. Don t be greedy with this strategy. Set your aim for 4-5% in gains, you can push it to 6% but if the stock happens to be establishing a new upward trend-line without you knowing about it, you don t want to be stuck watching your winning position turn into a loser. So be aggressive and take those gains aggressively and when you have them. SHAREPLANNER.COM 6 TRADE SETUPS YOU CAN START USING RIGHT NOW 6

Trade Setup #6 (Short): TRIPLE BOUNCE DROPPER With the opposite requirements of The Third Puller, The Triple Bounce Dropper tends to happen in a much more compressed time frame, and the third test of

8 Trade Setup #6 (Short): TRIPLE BOUNCE DROPPER With the opposite requirements of The Third Puller, The Triple Bounce Dropper tends to happen in a much more compressed time frame, and the third test of the declining trendline are often times the strongest push lower that the stock will experience in the overall downtrend. Get short in this stock as close as you can to the falling trend-line in order to minimize risk on the play. If the stock rallies through the resistance level, cut your losses and get out. There is a much greater level of risk associated with this play if you try to get in on the fourth or fifth retest of the trend-line as the probability for success is greatly diminished. If you have three or four straight days of solid gains, consider selling the position and moving on to the next trade as the easy money will have already been made on the stock. SHAREPLANNER.COM 6 TRADE SETUPS YOU CAN START USING RIGHT NOW 7

9 SharePlanner's TRADING FOR SUCCESS If you want to take your trading to the next level, consider joining the SharePlanner Splash Zone where you can get my real-time trade alerts via text and alerts, as well as becoming a participant in our active and vibrant chat room. For more information on the SharePlanner Splash Zone, Click Here. COPYRIGHT BY SHAREPLANNER INC. ALL RIGHTS RESERVED SHAREPLANNER.COM 6 TRADE SETUPS YOU CAN START USING RIGHT NOW 8

Three Techniques for Spotting Market Twists and Turns. Riding the Roller

Three Techniques for Spotting Market Twists and Turns Riding the Roller Coaster Learn to Spot the Twists and Turns Whether you re new to forex or you ve been trading a while, you know how the unexpected