High-Probability Trade Setups

A key element of trading is identifying situations in the financial markets that can produce profits. The technical analyst tends to achieve this goal by looking at patterns in the markets that historically indicate the direction of the markets' next move. Author Tim Knight-founder of Prophet Financial Systems and the popular blog SlopeOfHope.com-has been involved in trading for a quarter century, experiencing everything from the Internet boom and dot-com crash to the housing bubble and the Great Recession. For almost that entire time, he's successfully used charts and technical analysis as the basis for his investing decisions. Now, with High-Probability Trade Setups, he shows you how to do the same. Divided into three comprehensive parts, this reliable resource opens with an informative overview of chart setups and offers a solid introduction to the principles and philosophy of technical analysis. After providing you with a firm understanding of these essential issues, Knight turns his attention to the main focus of the book, which is historical price patterns, their results, and their nuances. Chapter by chapter, Knight presents detailed explanations of twenty powerful patterns, using real-world examples that will help you understand their behavior and apply them to your everyday trading endeavors. Each chapter in Part Two of the book is structurally the same-introduction to a pattern, definition of the pattern, psychology behind the pattern, examples, and summary-so you can quickly gain valuable insights on patterns of particular interest to you. Some of the setups covered include chart patterns such as: Ascending triangles and wedges Diamonds Gaps Fibonacci fans Pennants Head and shoulders Channels Part Three of this practical guide rounds out the discussion by outlining some critically important rules of today's trading road and sharing some valuable knowledge on short selling. Making money in the market isn't easy, but it is possible. With High-Probability Trade Setups as your guide, you'll discover exactly what it takes to chart your way to more consistent and profitable trading.