Coming This Week

Most traders have only a vague sense of what "Fibonacci" strategies are and what they're used for. Some view them as a crystal ball that allows you to predict all future market action. Others see it as pure nonsense. In past few months, Carolyn Boroden has helped to demystify Fibonacci and given us realistic view of what it can and can't do. 

Here's an example of what it can do. On January 29th Carolyn wrote the following in her Futures Perspectives column:

....watch this contract [Nasdaq futures] very closely for a "sell trigger" against these time cycles. If we do see indications of a reversal after a high is made within the "time window" for a change in trend, we will consider the sell side as the odds for a reversal would be on our side...."

I'm sure you know the rest of the story. 

If you're not familiar with Carolyn's work, I strongly suggest you read Carolyn's past columns. Compare what she says with what ultimately happens in the markets. You'll see that Fibonacci strategies, while they do not predict the future--do give you a definite edge. In previous lessons, Carolyn taught you how this edge allows you to identify key price levels--the levels where you need to watch for tradable patterns to set up. 

In her new trading lesson, "Using Fibonacci to Identify the Most Timely Entries and Exits." Carolyn gives you her formula for identifying when the big moves are most likely to happen. One of those big moves came last fall. You saw the major top in the Nasdaq on September 1st. That was the start of the second leg down. Carolyn will show you the six calculations that, when combined, raised red flags before the top occurred. 

Most importantly...this is one new tool that'll be yours to use so that you'll be well-positioned for the next big one.

It's a mystery how and why Fibonacci works. But when you consider that Carolyn's work has been mentioned favorably in Kevin Haggerty's, Jeff Cooper's, Goran Yordanoff's, and my own columns you have ask "who cares about that"--as long as it does work.

Multiple alerts hitting a stock at the same time increase your odds of success. In Duke Heberlein's new lesson, he'll show you a pullback strategy that is built on this solid premise. This pullback strategy is one of my favorites, not just because of its consistency (when executed properly), but because it's so cut and dried. A stock must meet certain relative strength and ADX parameters. From there you watch the patterns unfold and wait for the right moment. With proper setups, reversals off the pullback are often powerful.

Duke will explain the exact parameters you should be looking for in order to catch these moves in his lesson: "The TradersWire Guide To Combining Moving Averages and Retracements."

Ask around and you're like to find that the top 10 list of books for many traders will inevitably include, Jesse Livermore's "Reminiscences of a Stock Operator," as well as Livermore's own manual, "How to Trade in Stocks."

Livermore's admirers include such contemporary stock market masters William O'Neil, Marty Zweig and Cedd Moses. Nor is Livermore's appeal limited to stock traders. Asked to recommend a single book for traders, bond market strategist Tony Crescenzi recommended "Reminiscences". Livermore admirers will be excited to know that author Richard Smitten has given us "The Amazing Life of Jesse Livermore," the (in Loren's opinion the best) non-fiction biography of arguably the greatest stock trader who ever lived. Read Loren Fleckenstein review of the book this Saturday.

Over the last couple of years, we've gotten a number of requests to provide specific ideas. 

As you know, our emphasis at TradingMarkets.com has been to provide you with the best education and daily market insights for professional traders so that you can easily come up with your own specific trading ideas. And then act on them. 

• But what if...you simply don't have the time or resources to study and do homework?
• Is there a way in which you can benefit from the fantastic opportunities in the markets with less time committed to learning our strategies and analyzing the markets every day? 
• Is there a way in which we can help you? 

Help is now available at a new site from TradingMarkets Financial Group: TradingSubscriptions.com.

Through TradingSubscriptions.com you'll have access to trading services from the best traders in the country. Visit the site and get a detailed description of various services on stocks, futures and options--all designed to help you get better results. Also included will be an opportunity to subscribe to two new database services from TradingMarkets Financial Group. 

Know someone who'd like to learn the first steps toward becoming a successful and confident trader? Would you yourself like to brush up on the basics? BeginningTrader.com is now live. Come in and get an education worth thousands of dollars and lay a strong foundation for your future trading success--all free of charge.