The secrets of trading the first pullback PDF- Alwin Ng- Trading price action pullbacks can be very profitable if done correctly. Hence, I hope to show you a variety of pullback patterns and hopefully you can use that as a starting point to fine tune your own trading. Learning to trade is a journey.
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Category: Technical Analysis
Author: Alwin Ng
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Introduction- The secrets of trading the first pullback PDF
When I started trading the market, my first trading system was called the Sniper. The system relies on price action setups on the 5 minute chart in a trending market. The primary indicator is the 50 Exponential Moving Average (eMA) but you rely on a strong correlation amongst multiple timeframes. In short, if done correctly, this is a scalping technique which can generate profitable returns using low risk entries.
The system, till today, is one of the best systems that I learned. Apart from the intensity, the learning curve was steep and rewarding – especially in the area of timeframe correlations, price action and chart indicators. More importantly, while it was the first system that I traded (on a live account), it was also the first system that introduced me to trading market Pullbacks.
Of course, that was the first of many systems that I traded. Other systems that I picked up later provided insights into different market conditions – including any reversal and ranging markets. After a while, like many amateur traders, I realised that a system is just a set of rules governing your entries and exits.
Through experience, I found out that, beyond any trading systems, there was a mysterious market theory called Price Action. (Yes, that included the market Pullback that was part of the market theory).
My curiosity pushed me to learn more and, along the way, I started to remove chart indicators and began to put my attention on price and price patterns only. At one point in my trading career, I was only trading using naked charts and price patterns. Since then, reading price action became the core of my trading and it helped me mature as a trader.
One day, during my trade review, I accidentally found a common theme amongst all the trades that I’ve made, I realised that I have been using pullbacks in all my trading systems. The more I explored that, the more I realised they exist in all markets and any market conditions. Some pullbacks were bigger than others, and some had a higher probability of success. On top of that, I found out that Market Pullbacks can potentially provide low risk but high profitable entries. With that, I hope to share my theory in this book. Hopefully, you can enjoy it sooner or later.
“Sometimes the best things are just right in front of you.”
Believe it or not, you see price pullbacks almost every time you open your price chart because it is inevitable that price is cycling and pulling back and forth all the time. However, many traders do not see it. That just goes to show that humans (including traders) can be so engrossed in their own thing that they often fail to see the obvious that is right in front of them.
While this book is primarily about pullbacks, this is also my way of breaking down information from what seems to be bulky blocks into little absorbable chunks and building them back into useful resources. By breaking the process down, you are able to spot the various clues in the market easily. The more clues you find, the more likely that you have a successful trade.
At the same time, never forget the bigger picture when trading. Since the big guns are the one with the deepest pocket, it makes sense to keep track of who those market leaders are. By keeping track, I don’t mean searching for the traders’ information. Instead, I am referring to understanding what and how price is reacting to certain challenges in the market. In fact, the more you understand price action, the easier you can spot the leader.
Trading price action pullbacks can be very profitable if done correctly. Hence, I hope to show you a variety of pullback patterns and hopefully you can use that as a starting point to fine tune your own trading. Learning to trade is a journey.
However, once you built a solid foundation, the rest of the journey should be easier. Also, it is profitable trading pullback if it is congruent with your trading beliefs. Hence, I hope to explain how, why and when trading pullbacks works. More importantly, you should also understand how, why and when they do not work.
Table of contents- The secrets of trading the first pullback PDF
4 HOW THE MARKET WORKS?
4.1 MARKET DRIVERS
4.2 PRICE NEVER MOVES IN A STRAIGHT LINE
4.3 REVERSION TO MEAN
4.4 KEY POINTS
5.1 WHAT’S A PULLBACK?
5.1.1 Single and Multi bar Pullbacks
5.2 THE MORE PULLBACKS YOU KNOW, THE MORE PREPARED YOU CAN BE
5.2.1 Simple Pullbacks
5.2.2 Complex Pullbacks
5.3 FINDING PULLBACKS
5.4 MEASURING PULLBACKS
5.4.1 A Brief Introduction to Fibonacci (Fib)
5.4.2 Fibonacci Retracements (Fib Ret)
5.5 KEY POINTS
6 WHEN PULLBACK FAILS
6.1 HOW PULLBACK FAILS?
6.2 WHEN PULLBACK FAILS
6.3 WHEN FAILED PULLBACK FAILS
6.4 FINAL TEST OF THE EXTREMES
6.5 KEY POINTS
7 HOW TO USE A PULLBACK?
7.1 CLUES FOR SUCCESS
7.1.1 Depth of a pullback
7.1.2 Trend Bars
7.1.3 Horizontal Support & Resistance Levels
7.1.4 Knowing the Market Players and Timeframe
7.2 KEY POINTS
8 THE BEST PULLBACK
8.1 NEXT BEST ENTRY
8.2 FIRST PULLBACK IN NEW DIRECTION
8.3 COMBINING CLUES FOR FIRST PULLBACKS
8.3.1 Conviction of a Failed Pullback
8.3.2 Spotting Big Players at Market Extremes
8.4 OTHER FORMS OF FIRST PULLBACKS
8.4.1 Reversal Patterns
8.5 KEY POINTS
9 BUILDING A CASE
9.1 STACKING PROBABILITIES
9.2 KEY POINTS
10 MASTERY – WHAT’S THAT ALL ABOUT?
10.1 FOUR STEPS TO MASTERY
10.2 TECHNICAL MASTERY – THE JOURNEY
10.3 MIND MASTERY – TRADING IN THE ZONE
11 FURTHER DEVELOPMENT
About the author
Alwin Ng graduated in Mechanical Engineering (Imperial College London) but followed his passion in finance and business. After graduation, he spent lots of time learning and even qualified as a professional accountant (CIMA).
His career in a few blue chip firms as well as in the financial sector gave him great exposure to how the industry works. Alwin left the corporate world and started his entrepreneurial career in the mobile phone trading business before he pursued a career as a private market trader. The combined experiences in the finance world and retail business have given him the edge in understanding market sentiment and traders’ behaviour.
Alwin is currently an independent market trader and he actively trades the currency market, indices as well as the US/ UK stock market.
While Alwin is not a trained psychologist, he is passionate about understanding human psychology and investors’ behaviour. Alwin is a certified NLP Practitioner (ABNLP) and is best known as a coach for traders who specialises in traders’ psychology and technical trading.
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