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TradeStation Systems - Three Powerful "Trading Edges"

Updated on August 29, 2012

Most Traders Know A "Trading Edge" Is Critical

Since a "trading edge" is so critical to success, how does a trader find a "trading edge"?

I am going to share the three most powerful "trading edges" I have discovered.

If you combine all three "trading edges" together you have a powerful trading advantage.

TradeStation Systems - Three "Trading Edges"

To make a really long story about my trading history very short, I have found three vital "trading edges". Each of these three "trading edges" are built on valid fundamental trading principles and can be combined into one integrated powerful trading advantage.

The first critical "trading edge" is to understand and use the following three key fundamentals in priority of importance:

  (1) Price Action (the best is using multiple time frame price action)

  (2) Volume (the best is using Time Segmented Volume)

  (3) Price Action and Volume producing support and resistance (the best is using Fractal Channel)

(Important Corollary: All indicators that do not provide valuable insights into at least one of these three key trading fundamentals listed above is to be considered a non-essential trading indicator).

The second critical "trading edge" is to understand and use the above three key fundamentals to identify and properly trade each of the four market modes, which are:

  (1) Up Trend Mode

  (2) Down Trend Mode

  (3) Consolidation Mode

  (4) Trading Range / Choppy Mode

Why does the market mode deserve a spot as a critical "trading edge"?

The reason is that any single strategy logic only handles the one single market mode that it was designed to handle. When the strategy and trading chart market mode are in harmony the strategy makes good profits. When the strategy and trading chart market mode are NOT in harmony you'll experience those unwanted equity draw downs. By keeping the strategy logic and trading chart market mode in sync you improve your trading profits.

The third critical "trading edge", which is the greatest one of all, is Multiple Time Frames (MTFs). To best illustrate why using MTFs is the greatest "trading edge", let's look at a typical single time frame consolidation breakout trade on a 5 min trading chart. These have often resulted in a fair trade that produced a little profit, but the reward to risk ratio is generally around a 1.5 to 1. Compare that to trading a MTF consolidation that spans across the 5 min, 15 min, 20 min, 30 min, 60 min, 120 min, and 240 min time frames. These have historically produced powerful breakouts that moved in a single direction for days. These MTF consolidation breakouts create High Probability trading entries where the stop loss risk was low and the reward was often as high as 20 to 1 reward to risk ratio. That is why MTFs became my third "trading edge" and the greatest "trading edge" of all. More details and a trading video about the "MTF Price Action Indicator - The Greatest Trading "Edge"".

Time Segmented Volume - The Undistorted TradeStation Volume Indicator

Fractal Channel - Real Time Support and Resistance

Secrets of a Pivot Boss - Very Practical Book On Multiple Different Types of Pivots

Secrets of a Pivot Boss: Revealing Proven Methods for Profiting in the Market
Secrets of a Pivot Boss: Revealing Proven Methods for Profiting in the Market

Franklin Ocha combines the knowledge of legendary traders like Jessie Livermore with the contemporary market masters like Mark Fisher. He take pivots to new heights with the concepts like "The Camarilla Equation" and integrates them into a unique blend of trading methodology that is his own. This book incorporates all the key tenets one needs to know to successfully speculate in the markets.

 

Advanced Postion Sizing Made Easy - One of the most importance aspects of trading is risk management using proper position sizing.

Have You Found Trading With a "Trading Edge" Important?

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    • profile image

      barrycrow60 

      7 years ago

      A good professional stock trading software offer sophisticated programs that are sable to chart and analyze stock trends.

    • profile image

      kate00moss 

      7 years ago

      Different type of program is personal financial management software.

    • profile image

      jcarmen33 

      7 years ago

      More and more Traders turned to trust stock trading software for analysis that improve their investment and make it easy to trade stocks with online brokers.

    • profile image

      texasprojectw 

      7 years ago

      The world wide internet has changed characteristics of the global business and has widened the range between professionals and non-professionals. Nice lens.

    • profile image

      crystalshane777 

      7 years ago

      Stock trading software is a significant financial instrument for most day traders and stock brokers who want to expand, explore and approach day by day trading options.

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