Trend Trading Set-Ups

An expert reveals a step-by-step process for profiting from neoclassical qualified trend trading Trend Trading Set-Ups extends the neoclassical concept of qualified trend first introduced by Little in Trend Qualification and Trading, providing traders and investors with a sound methodology for uncovering the very best trade set-ups and the ability to time trade entries like never before. In Trend Trading Set-Ups, Little reveals the data behind qualified trends and utilizes a novel concept involving time to calculate trend failure probability rates. Little reduces the complex to its most simplistic form compressing all trades types into just two classes retraces and breakouts. Once simplified, over a decade worth of qualified trend data is examined. The result is a comprehensive presentation of what makes some trades enormously better than others and how you can both find and exploit the most favorable trade set-ups. Some trading books are an interesting read but soon forgotten. A few books you place on the reachable shelf and refer to often. In Trend Trading Set-Ups L.A. Little offers you an entirely new way of approaching an old subject and does so in a style that is both as riveting as it is valuable. As with Trend Qualification and Trading you will find this book an easy but comprehensive read and one that you will turn to again and again while pursuing your trading and investing endeavors.

An expert reveals a step-by-step process for profiting fromneoclassical qualified trend tradingTrend Trading Set-Ups extends the neoclassical concept ofqualified trend first introduced by Little in TrendQualification and Trading, providing traders and investors witha sound methodology for uncovering the very best tradeset-ups and the ability to time trade entries like neverbefore. In Trend Trading Set-Ups, Littlereveals the data behind qualified trends and utilizes a novelconcept involving time to calculate trend failure probabilityrates.Little reduces the complex to its most simplisticform compressing all trades types into just two classesretraces and breakouts. Once simplified, over a decade worth ofqualified trend data is examined. The result is a comprehensivepresentation of what makes some trades enormously better thanothers and how you can both find and exploit the most favorabletrade set-ups.Some trading books are an interesting read but soon forgotten. Afew books you place on the reachable shelf and refer to often. InTrend Trading Set-Ups L.A. Little offers you an entirely newway of approaching an old subject and does so in a style that isboth as riveting as it is valuable. As with Trend Qualificationand Trading you will find this book an easy but comprehensiveread and one that you will turn to again and again while pursuingyour trading and investing endeavors.

Foreword ixAcknowledgments xiIntroduction 1PART I 7CHAPTER 1 Identifying and Qualifying Trend Probabilities9Trend Determination 10Qualified Trend Failure Probabilities 13Qualified Trade Failure Probabilities 31Summary 37CHAPTER 2 Anchor Zones: The Key to Timing Trades 41Anchor Bars and Zones 42Reconsidering Trade Failures 46Summary 54CHAPTER 3 Broader Influences Affecting Stocks 55Sector Congruence 59Virtual Industry Groups--Future Direction 72General Market Congruence 74Summary 81PART II 85CHAPTER 4 Formulating a Workable Trading Plan 89Trend Direction and Strength 90Time Frames 94Entry and Exit Timing 95Trading Size, Scale Trading, Trade Success Probabilities, andReward-to-Risk Ratio 100Evaluating and Acting Upon the Plan 104Summary 105CHAPTER 5 The Data behind Trend Trade Set-Ups 107The Only Two Types of Trade Set-Ups 108Trading Breakouts and Retraces 111Breakouts versus Retrace Trade Probabilities 113Probabilities for Trade Set-Up Scenarios 122Summary 133CHAPTER 6 Sideways Range Trades 135Trade Set-Up Conditions and Categorizations 136Trading Sideways Trends 137Summary 155CHAPTER 7 Breakout and Retrace Trade Set-Ups 157Retrace Trade Set-Ups 158Breakout Trade Set-Ups 186Considering Other Trade Set-Ups 199Trade Set-Up Rationale and Thoughts 201Summary 205Conclusion: Unleashing Trade Potential 207Appendix: Data Tables 209About the Author 241Index 243