Complete trading systems for use with MetaStock
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The Tactical Trader Systems are a technical analysis theories and principles by Tactical Trader.. We are a mechanical entry and exit methodology within the Equis MetaStock program.
.Possessing a methodology that develops confidence and belief in your own consistency is essential. The methodology we employ is based on a scientific approach and the beauty of our system is that there is no ambiguity or indecisiveness.
Our Systems dictate that the trader must take the trade based solely on the principles of the system. The reason he must take the trade is because no one knows which trades will be successful. Trading is based on probabilities and risk control. The methodology is objective and the trader is not. That is why it is important to trade based on a sound methodology and not on an emotional level. It then becomes the traders job of continuing to place trades when the probabilities and patterns are presented.
We can help you learn to recognize and profitably trade futures based on sound theory and management techniques.
While the market's function is price discovery, an analyst's function is price forecasting in order to make profitable trades. There are two basic approaches to market analysis -- technical analysis (of market data) and fundamental analysis (of market environment). My style of trading is Technical Analysis.
Fundamental Analysis requires information, lots of it and then a subjective decision based on this information. It is my opinion that one cannot effectively, consistently trade the markets with this sort of system. This is a system of subjection that is based on the timing and quality of the information and/or lack thereof.
Technical Analysis is a method to forecast price movements of individual commodities and/or entire markets by looking at purely market-generated statistics;abstract summaries of price activity. One tenet of technical analysis is that all market fundamentals are depicted in the actual market data. Thus actual market fundamentals and various unquantifiable meta factors, such as the differing opinions, hopes, fears, and moods of market participants, need not be studied. (The primary trade tool for the technical trader is the price action or price chart).
not look at crop size, export data, money supply or employment statistics. They don't care if it is raining in Brazil or if the head of the European Central Bank just made a speech and he's in favour of raising interest rates. They only care about price action. This is not to say that technicians don't believe fundamentals move the market. They concede this fact. In short, price action will reflect the consensus of the market players far better than mainstream fundamental information available to the trader.
Assumption: Technical analysis incorporates the fundamental aspects of commodity price fluctuations, therefore there is no need to study any other tendency or factor associated with each commodity.
Assumption: History repeats itself, such that markets move in fairly predictable, or at least quantifiable, patterns. These patterns, generated by price movement, are called signals. The goal in technical analysis is to uncover the current market's signals by examining past market signals.
Assumption: Prices move in trends. Technicians typically do not believe that price fluctuations are random and unpredictable. (Most reject the weak-form explanation of market efficiency and dismiss the random walk theory.) Prices can move in one of three directions, up, down or sideways. Once a trend in any of these directions is in effect it usually will persist. The market trend is simply the direction of market prices, a concept which is absolutely essential to the success of technical analysis. Identifying trends is quite simple; a price chart will usually indicate the prevailing trend as characterized by a series of waves with obvious peaks and troughs. It is the direction of these peaks and troughs that constitutes the market trend. Technical analysis attempts to determine the strength and direction of the trend and the change in the trend direction.
Types of Technical Analysis- see glossary page for more detailed definitions
Chart patterns Chart patterns are hills and valleys, shapes and curves that develop over time on a chart which often indicate changes in price direction.
Candlestick patterns Like bar charts patterns, candlestick patterns can be used to forecast the market. Because of their colored bodies, candlesticks visually represent greater detail in their chart patterns than bar charts.
Point & figure patterns Point and figure patterns are essentially the same patterns found in bar charts but transposed on charts with no time scale.
Strength indicators Market strength indicators describe the intensity of market opinion with reference to a price by examining the market positions taken by various market participants.
Volatility indicators Volatility indicators describe the size of day-to-day price fluctuations independent of their direction.
Cycle indicators Cycle indicators determine the timing of a particular market patterns.
Support/resistance indicators Support and resistance indicators describe the price levels where markets repeatedly reverse
Momentum indicators Momentum indicators determine the latent strength or weakness of a trend as it it progresses over time.
Definitions:
A trading system is a systematic way of trading the market. A trading system is a collection of formulas and rules that generate buy and sell recommendations.
Technical analysis can be defined as the art of studying the internal performance or action of a market based on data obtained from price and volume.
The building blocks of any technical analysis trading system include price charts and technical indicators, which are merely mathematical representations of market patterns and behaviours.