The Complete Trading Course

THE COMPLETE TRADING COURSE
A step-by-step approach to analyzing markets and making informed trading decisions The Complete Trading Course provides aspiring traders with a detailed description of methods to analyze markets, spot profitable trading opportunities, and execute trades properly. Using a variety of approaches-such as Candlesticks, Elliott Wave, Dow Theory, and others-this book shows you how these methods overlap to identify tradable moments in the markets. Author Corey Rosenbloom skillfully explains how to identify trades based on price trend, momentum, and volatility-and how to make decisions confidently and maintain that confidence throughout the trade.
The Complete Trading Course goes beyond basic strategies to reveal how to assess your edge-the specifics of trade execution tactics geared to your unique personality-and then incorporate your experiences, stage in life, risk-tolerance, and individual psychological make-up into a lifetime of learning. By creating this unique approach, you'll learn to progress month to month and then year to year as a developing trader.
No one book, indicator, or seminar can teach you all you need to know to be a successful trader, but this timely guide lays the foundation upon which to build a lifelong trading career.

Preface xi
Acknowledgments xvii
Part I Foundational Principles 1
Chapter 1 Supremacy of the Trend 3
What is a Trend? 3
Methods for Defining Trends 7
Pinpointing the Trend Reversal in 2009 19
Chapter 2 Momentum's Leading Edge 21
The Science of Momentum 21
Momentum in the Stock Market 23
Gaps Reveal Momentum 24
The Momentum Indicator 26
The Rate of Change Indicator 34
The 3/10 MACD Oscillator 37
Where Momentum Is Strongest 43
Chapter 3 Price Alternation Principle 45
Defining the Principle 45
Price Contraction Phase 47
Price Expansion Phase 49
Viewing the Market as Buyers and Sellers 53
Feedback Loops 55
Choosing the Right Indicators 64
Part II Strategies and Tools 79
Chapter 4 Candlestick Charting 81
Benefits of Using Candlestick Charts 81
Construction of Candlestick Charts 82
Basic Terms Used to Describe Candlesticks 85
Common Signals 87
Three Trading Scenarios 107
A Little Knowledge Goes a Long Way 109
Chapter 5 Examining Price Patterns 111
What Are Price Patterns? 111
Introduction to the Most Popular Patterns 115
Head and Shoulders 116
Inverse Head and Shoulders 121
Bull Flag 125
Triangles 134
Using Price Patterns in the Real World 143
Chapter 6 Fibonacci Tools 145
What Is Fibonacci in Trading? 145
Fibonacci Retracements 147
How to Identify Fibonacci Retracement Confluence Zones 153
The Multiple Uses of Fibonacci Tools 161
Chapter 7 Following the Life Cycle of a Price Move 163
Three Phases of a Large-Scale Price Move 164
Visualizing the Stages through Charts 169
Ralph Elliott's Wave Theory 176
The Three Rules of Elliott Wave 182
Elliott Waves Example: Research in Motion 183
Final Tips for Applying the Life Cycle in Real Time 185
Part III Execution and Trade Setups 187
Chapter 8 Edge, Expectancy, and Execution 189
All about Edge 190
Edging Out Your Expectancy 197
Trade Execution Tactics 208
Chapter 9 Four Basic Trade Setups 219
Common Components of Every Trade 219
How to Classify Trade Setups 228
Mean Reversion Strategies 229
Mean Departure Strategies 240
Where Trades Fit in the Life Cycle 248
Trading Confidently 253
Chapter 10 Specific Trade Setups for Today's Markets 255
The Cradle Trade 255
The Impulse Buy and Impulse Sell Trade 260
Using Multiple Timeframes to Enter an Impulse Buy Trade 265
Concluding Thoughts 270
About the Author 273
Bibliography 275
Index 281