Trading Between the Lines

Insights into a pattern-based method of trading that can increase the likelihood of profitable outcomes While most books on chart patterns, or pattern recognition, offer detailed discussion and analysis of one type of pattern, the fact is that a single pattern may not be very helpful for trading, since it often does not give a complete picture of the market. What sets Trading Between the Lines apart from other books in this area is author Elaine Knuth's identification of sets of patterns that give a complete analysis of the market. In it, she identifies more complex chart patterns, often several patterns combined over multiple time frames, and skillfully examines these sets of patterns called "e;constellations"e; in relation to one another. These constellations turn sets of individual patterns into a more manageable set of patterns, where the relationship between them can lead to tactical trading opportunities. Shows how to apply complex patterns to specific trades and identify opportunities as well entry and exit points Markets covered include commodities, equities, and indexes Presents an effective trading approach based on real market cycles-as opposed to computer simulations-that are found in active markets Moving beyond the simple identification of basic patterns to identifying pattern constellations, this reliable resource will give you a better view of what is really going on in the market and help you profit from the opportunities you uncover.

Insights into a pattern-based method of trading that can increasethe likelihood of profitable outcomesWhile most books on chart patterns, or pattern recognitionoffer detailed discussion and analysis of one type of pattern, thefact is that a single pattern may not be very helpful for tradingsince it often does not give a complete picture of the market.What sets Trading Between the Lines apart from otherbooks in this area is author Elaine Knuth's identification of setsof patterns that give a complete analysis of the market. In it, sheidentifies more complex chart patterns, often several patternscombined over multiple time frames, and skillfully examines thesesets of patterns called "constellations" in relation to oneanother. These constellations turn sets of individual patterns intoa more manageable set of patterns, where the relationship betweenthem can lead to tactical trading opportunities.* Shows how to apply complex patterns to specific trades andidentify opportunities as well entry and exit points* Markets covered include commodities, equities, and indexes* Presents an effective trading approach based on real marketcycles-as opposed to computer simulations-that are found in activemarketsMoving beyond the simple identification of basic patterns toidentifying pattern constellations, this reliable resource willgive you a better view of what is really going on in the market andhelp you profit from the opportunities you uncover.

Preface ixAcknowledgments xiChapter 1 Perception and Pattern: How Mindset Affects Understanding and Action 1Chapter 2 Visualizing the Concept of What Makes a Price 19Chapter 3 An Upside Reversal 37Chapter 4 A Downside Reversal 61Chapter 5 Price and Repeating Order 91Chapter 6 Into the Valley of the Kings and the Place of Truth: Pattern Concepts to Enter a Market on the Run 115Chapter 7 Market Weather: The Quiet before the Storm and the Lightning Bolt--Patterns Signaling an Unexpected Move 133Chapter 8 Inside Market Cycles 163Chapter 9 Managing Risk with Applied Trading Tactics 187Notes 213Index 217