Original Patterns 243 Pattern Recognition 244 Managing Opportunity 246 Two Classic Applications 248 2B Top 248 Description 249 Setup Tactics 250 Execution and Position Management 251 Reward:Risk 253 Channel Break 253 Description 253 Setup Tactics 254 Execution and Position Management 255 Reward:Risk 256 Introducing the 7-Bells 257 Original Setups and Execution 257 7-Bells Characteristics 258 Dip Trip--Price That Moves Against a Strong Trend Will Rebound Sharply 258 Coiled Spring--Constricted Price Gives Way to Directional Movement 258 Finger Finder--Candles Flag Reversals in the Next-Smaller Time Frame 258 Hole-in-the-Wall--Gap Downs after Strong Rallies Signal a Trend Change 259 Power Spike--High-Volume Events Print the Future Direction of Price 259 Bear Hug--Weak Markets Drop Quickly after Rallying into Resistance 259 3rd Watch--Breakouts through Triple Tops Signal Major Uptrends 259 Trading Strategies 260 Chapter 8 Dip Trip 261 Characteristics 261 Trade Mechanics 262 Dip Strategies 265 Applications 268 The 38-62 268 Description 268 Setup Tactics 269 Execution and Position Management 269 Reward:Risk 270 Continuation Dip 271 Description 272 Setup Tactics 272 Execution and Position Management 273 Reward:Risk 275 First Pullback 275 Description 275 Setup Tactics 276 Execution and Position Management 277 Reward:Risk 278 Chapter 9 Coiled Spring 279 Characteristics 279 Trade Mechanics 279 Spring Strategies 281 More on Range Bar Analysis 283 Applications 285 Triangle Coil 285 Description 285 Setup Tactics 286 Execution and Position Management 286 Reward:Risk 287 Failure Coil I 288 Description 288 Setup Tactics 289 Execution and Position Management 289 Reward:Risk 290 Failure Coil II 291 Description 292 Setup Tactics 292 Execution and Position Management 292 Reward:Risk 294 Chapter 10 Finger Finder 295 Characteristics 295 Trade Mechanics 297 Finger Strategies 299 Other Considerations 300 Applications 302 Hidden 100 302 Description 302 Setup Tactics 303 Execution and Position Management 303 Reward:Risk 303 2B Finger 303 Description 304 Setup Tactics 305 Execution and Position Management 307 Reward:Risk 308 Death Star 308 Description 308 Setup Tactics 309 Execution and Position Management 311 Reward:Risk 311 Chapter 11 Hole-in-the-Wall 313 Characteristics 313 Trade Mechanics 313 Hole Strategies 316 Applications 319 1-2 Decline 319 Description 319 Setup Tactics 319 Execution and Position Management 320 Reward:Risk 322 Support Hole 322 Description 322 Setup Tactics 323 Execution and Position Management 324 Reward:Risk 324 Island Reversal 324 Description 325 Setup Tactics 326 Execution and Position Management 327 Reward:Risk 328 Chapter 12 Power Spike 329 Characteristics 329 Trade Mechanics 329 Spike Strategies 332 Applications 333 Breakdown Spike 335 Description 335 Setup Tactics 335 Execution and Position Management 335 Reward:Risk 336 Pullback Spike 337 Description 338 Setup Tactics 338 Execution and Position Management 338 Reward:Risk 339 Climax Spike 340 Description 341 Setup Tactics 341 Execution and Position Management 341 Reward:Risk 343 Chapter 13 Bear Hug 345 Characteristics 345 Trade Mechanics 345 Bear Strategies 349 Applications 351 50-200 Pinball 351 Description 351 Setup Tactics 352 Execution and Position Management 352 Reward:Risk 352 Channel Short 353 Description 354 Setup Tactics 355 Execution and Position Management 355 Reward:Risk 355 Intraday Short 356 Description 357 Setup Tactics 358 Execution and Position Management 358 Reward:Risk 360 Chapter 14 3rd Watch 361 Characteristics 361 Trade Mechanics 361 Watch Strategies 365 Applications 368 Watch Echo 368 Description 368 Setup Tactics 368 Execution and Position Management 369 Reward:Risk 371 3rd Watch Classic 371 Description 371 Setup Tactics 371 Execution and Position Management 372 Reward:Risk 374 Swing Watch 374 Description 374 Setup Tactics 374 Execution and Position Management 376 Reward:Risk 377 PART THREE MAKING THE TRADE Chapter 15 Precise Trade Execution 381 Timing and Methods 381 Execution Target 381 The Trading Day 383 Building Execution Skills 386 Pullback Execution 393 Trade Management 397 Perfect Entry 397 The Fill Machine 398 Watching Active Positions 400 Exit 404 Beating the Game 406 Mastering the Tape 409 ECNs and Direct Access 409 The Tape 412 Level II 415 Market Lies 417 Fakeouts 417 Whipsaws 419 Noise 421 Conclusion Thirty Rules for the Master Swing Trader 423 Trade Craft 423 Rules for the Trading Game 424 Market Wisdom 424 The Swing 425 Time 425 Execution 426 Opportunity and Risk 426 Secrets of the Price Chart 427 The Master Swing Trader 428 Appendix A: Suppliers 429 Appendix B: Glossary 431 Bibliography 439 Index 441 FOREWORD With explosive growth of the Internet and major changes in the financial markets, a new breed of speculators has evolved. A trending stock that moves to a new high or low near closing should surge in that direction the next morning. On the far left is the kind of return that is absolutely safe, such as putting the money under your mattress rather than investing it.