Simple Forex System Trading

Victor Sperandeo, Trader Vic – Methods of a Wall Street Master, gives three steps for identifying a change in trend.  This three-step method will help you avoid losing trades and find great trading opportunities.  It correctly predicts a trend change 60 to 80% of the time.

The three steps are:

1. A trendline is broken.
2. There is a retest and failure.
3. Price falls below the prior low

via Learn the 3-Step Method for Identifying a Trend Change.

What is the signal bar? What does that look like?

It’s a bar that has a close above its open; preferably well above the open.

If you’re buying a lower low, for example, let’s say the pullback drops to below the bear low, I don’t want it to drop three or four bars below the bear low; one bar or two bars. Then if it reverses up, I’ll look to buy.

Another best trade for a trader is after that reversal becomes clearly a bull trend. Then I start looking to buy pullbacks, so preferably a pullback in the area of the moving average, and preferably one that has two legs like an ABC-type pullback to the moving average.

Again, when you have a bull signal bar—a bar with a close above the open—and then look to buy at one tick above the high of that bar.

via MoneyShow.com: Article – The Ideal Set-ups for New Traders.

How come I didn’t know about this tip but instead, I kept trying to get clues from the stupid Greek bailout news?

A trader who purchased a large block of call options in Vivus Wednesday may have netted more than $1 million as shares in the biotech more than doubled after receiving a positive FDA panel vote for its weight loss drug Qnexa

via Trader’s Wallet $1 Million Fatter After Gorging on Vivus – Fast Money – CNBC – CNBC.

FLOORED Episode 1 | Babelgum.