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SIMPLIFY IT
By using this simple,
logical trading system 8
SEE PAGE 2 FOR DETAILS
ENERGY PATTERNS
Finding the strong energy
areas in price charts 12
BREAKOUT TRADES
Techniques to maximize
proits 16
INTERVIEW
Howard Bandy 28
10 PRINCIPLES
OF SUCCESSFUL
TRADING
What to have in place 60
REVIEW
n Little Big View
NOVEMBER 2015
12 • November 2015 • Technical Analysis of StockS & commoditieS
CHARTING
The Reality Of It
by Charles Drummond
November 2015 • Technical Analysis of StockS & commoditieS • 13
NINJATRADER
FIGURE 2: ENERGY IN MOODS. Here you see a chart that expresses
moods on a scale of 1 to 10, where 1 represents “feeling awful” and 10
represents “feeling great.”
FIGURE 3: CONTAINING ENERGY WITHIN ITSELF. Here you see a simple flex
renko bar. Each bar is an expression of energy.
Continued on page 45
14 • November 2015 • Technical Analysis of StockS & commoditieS
FIGURE 4: BUY TRADE SETUP. Here you see that the upper energy band provides FIGURE 5: CONGESTION ACTION. Currently, price is weak and unable to even
resistance to the bullish price movement. reach the monthly upper energy band of resistance. Because of this, the buy trade
should be on your radar.
DRUMMOND / ENERGY PATTERNS horizontal lines are the lines of resistance. These lines are a
Continued from page 14 simple, precise, and powerful technique to visually spot strong
support & resistance energy in the market in real time.
not currently showing strong energy up, and the rather large
dashed purple lines above price are the monthly upper energy IdentIfyIng expressIons of energy
band. Currently, price is weak and unable to even reach this These patterns of energy and several others are found on all
monthly upper energy band of resistance. Because of this, the instruments and chart frames, such as lex renko bars, tick charts,
buy trade is on our radar. and even up to the yearly bars and beyond. Can technical analysis
To identify signiicant support & resistance levels, we use move toward a new direction—one that contains energy within
what we call crests and valleys. These crests and valleys are itself such as one simple graph, with price contained within
when the dotted midline either hooks up (for support) or down it, and clearly expressed? I sincerely hope so, since this is the
(for resistance) and then we patiently wait for price to return future of technical analysis and the frontier that we can now
to them. For an example of these crests and valleys, see Figure cross. We can observe energy, but the trick is to make it easy
6. The green horizontal line shows the valleys and the pink on the mind so it can be easily observed and interpreted.
Technical analysis needs to move
toward a graphical representation
of energy that is simply expressed.
Patterns exist within the energy
expressing itself. These patterns
can be observed and successfully
traded for proit.