published Tuesday, July 19th, 2011 at 12:06 am by
Jim
Trend Qualification and Trading Description
Technical analysis expert L.A. Little shows how to identify and trade big market moves.
Significant money can be made in the stock market by following big trends. In Trend Qualification and Trading, market technician L.A. Little explains how to identify and qualify these trends to determine the likelihood that they will continue and produce better trading results.
By combining price, volume, different timeframes, and the relationship between the general market, sectors, and individual stocks, Little shows how to measure the strength of stock trends. Most importantly, he demonstrates how to determine if a trend has what it takes to develop into a major move with greater profit potential or if it is basically a false signal.
Takes a proven technical approach to identifying and profiting from financial market trends
Shows how to best time entries, when to take profits, and when to exit trades
Introduces Little’s proprietary concept, The Trading Cube, which visually combines time and trend for a given trading instrument
Filled with in-depth insights and practical advice, this guide will help you make more of your time in today’s markets by providing an in-depth explanation of how to identify and qualify trends.
From the Author
My first book, Trade Like the Little Guy focused primarily on risk and a methodology that, if followed, would make you a consistently profitable trader independent of how you trade (fundamental or technical trader). Now I offer you my technical trading methodology with all the ideas of trend qualification, the Trading Cube, anchored support and resistance and more.
Having traded for three decades now and having an engineering background, naturally my desire over the years has been to develop a systematic approach to trading the markets. In this book, I lay out that approach in great detail, first looking at how trend was defined in the past and how I have defined it for now and the future. Part II takes that definition and applies it to the trading world showing you how to implement the methodology.
All successful trading systems have trend at their core. Up until now, all trends have been treated equal. No more. I propose a methodology of how to measure the goodness of a trend and to use that to your advantage.
Trend Qualification and Trading Book Review
Having read a number of books on technical analysis in an effort to make myself a better investor, I gave “Trend Qualification & Trading” 5 stars. With this book, L. A. Little has made a significant contribution to the practice of technical stock analyis. He presents new thought, built upon classical trend analysis, that you won’t find anywhere else.
My personal style is to be more of an investor than a day trader. I prefer to develop investment (as opposed to trading) ideas based on fundamentals and an analysis of value. Like many investors, I have lost faith in the old “Buy and Hold” philosophy and have added various technical analysis techniques to my tool kit in an effort to identify lower risk entry and exit points. The concepts presented in this book are a different way of evaluating the current market risk of broad markets, sectors, and individual stocks. I have applied these concepts to my own trading for around a month now and definitely feel they have improved the quality of my buy/sell decisions. Once you read this book, my bet is you will never look at a stock chart in the same way again.
One of the previous reviewers complained that the second half of the book contained no “well defined rules” for active traders. I am certainly not a day trader, but would suggest that those of you who are may want to check out Little’s website, [...], to develop additional understanding of how Little applies the book’s principles to his own day trading.
