文档介绍：Swing Trading
with Oliver Velez
email - editors@
Introduction
In this section, we will reveal a few simple keys to understanding how the market works.
The following concepts form the cornerstone of any and every sound trading technique or
tactic. After gaining a clear understanding of these building blocks, the trader will never
again find himself confused and not knowing what to do. In fact, once these powerful but
simple concepts are mastered and understood, the trader will rarely find himself on the
wrong side of the market. And over 65% of all trading losses can be attributed to being
on the wrong side of the market.
Understanding Candlesticks
Commentary
The main difference between Japanese Candlestick analysis and Western Bar Chart
analysis is that the Japanese place the highest importance on the relationship between the
open and close of the same day, while the Westeners place the importance on the close as
it relates to the prior period's close.
NOTE: As long as the underlying stock closes higher than the prior day's close, Western
thought says it's positive, however, according to the Japanese view, this is not necessarily
the case. If, on an up day, the stock closes below its open, the Japanese would regard it as
negative. EXAMPLE: Monday's close = $39. Tuesdays open = $. Tuesday's close
= $. The Western view: "Positive action because the stock was up 3/4 on the day."
Japanese view: "Negative action because the stock closed sharply below its opening price
of $."
IMPORTANT: We regard the latter view as more accurate and useful for traders.
This is why we exclusively use candlestick bar charts in our trading analysis in all time
frames.
3 Primary Trends - Building Block Two
There are only three things a stock can do: go up, go down, or go sideways.
1. Up Trend - Defined by a series of higher highs and higher lows.
• The Up Trend is better known as Stage 2.
2. Down Trend - Def