The King's Trader Education

The Trading Plan
The Simpleton's Fibonacci
Fibonacci 101
Fibonacci 102
Fibonacci 103
Practiical Candlestick - Basic Patterns
Steve Nison - Interview with Father of Candlesticks
Steve Nison - Favorite Candlestick Signal
Practical Candlestick - Seedwaves
Practical Candlestick - OBV
Practical Candlestick - Harami
Pivot Points
Basics of Bollinger Bands
Distribution/Accumulation Zones
Donchian Channels
Elliott Waves
Market Structures
Multiple Moving Averages - "The Rope"
Three Price Break
Elements of Gann Angles
Gann Percentage Pivots
Gann on 1929
Options - Basics
Options - Indexes and ETFs
Options - Greek
Options - Covered Calls
Options - Spreads
Options - Straddle
Options - Strangle
Options - Calendar Spreads & Options Repair Strategy
Sector Trading
Swing Trading
Position Trading
TICK & TRIN Tutorial
TICK & TRIN - Sustained Reversal

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The Simpleton's Fibonacci

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Nasdaq COMPX

DOW - INDU

Philadelphia Semiconductor Index – SOX.X

My road map is now complete. I am visibly aware of not only the futures, but the support and resistance pivots of my major indexes. So I tie it all together now into today’s game plan, which for me is usually the NQ or ES E-mini contracts and only one focus stock. QCOM is usually good for ranges so I load that up to complete my trading plan.

QUALCOMM Incorporated - QCOM

So this was my trading plan, clearly in front of me on September 6, 2001. Some notes here so you can compare with what actually occurred:

• The Nasdaq NQ E-Mini contracts - The Immediate Trading Range (ITR) Market Structure High that formed later that day came in at 1395.00. My R1 resistance projection for ITR was 1395.65 The Market Structure Low that formed later that day was at 1372 and then failed. This was right above or our initial PTR MSL of 1370.00.

• COMPX - The Immediate Trading Range (ITR) Market Structure High that formed later that day on 1727.03 – slightly above the projection of 1726.83 - The Market Structure Low that formed later that day was at 1709.88 and then failed. This was right off the 100% range pivot established earlier.

• INDU - The Immediate Trading Range (ITR) Market Structure High that formed later that day on 9896.05 – about 11 DOW points of the R2 resistance projection. There was not a subsequent Market Structure Low that formed this day.

• SOX.X - The Immediate Trading Range (ITR) Market Structure High that formed later that day on 523.70, between the R1 and R2 resistance pivots. Not much to write home about. There was not a subsequent Market Structure Low that formed this day.

• QCOM - The Immediate Trading Range (ITR) Market Structure High that formed later that day on 50.93 – there was beneath projected resistance pivots. There was not a subsequent Market Structure Low, in fact it sold all the way down to 48.40 on the closing candle. The R3 projected support was 48.03.

Okay then. I explained the idea of “Trading Ranges.” I hope I have also demonstrated the value of using them in your master-trading plan.

As a trader, especially in our current market environment, you are no better off than the student pilot who is trying to land his airplane after getting caught in dense fog.*

Think of Trading Range, and the Fibonacci based Range Pivots as your ILS, your instrument landing system. If you learn and practice these with discipline, they will guide you right to the center of the runway, every time.

"It takes a man a long time to learn all the lessons of all of his mistakes. They say there are two sides to everything. But there is only one side to the stock market; and it is not the bull side or the bear side, but the right side. It took me longer to get that general principle fixed firmly in my mind than it did most of the more technical phases of the game of stock speculation" ----from REMINISCENCES OF A STOCK OPERATOR