– Advanced Fibonacci Trading Concepts
– Entry Techniques
– Trading ABCD Patterns
– Trailing Stops
– Multiple Timeframes and ‘Context’
– Trade Management
– A Totally New 5-Point Pattern
– Four ‘New’ ABCD Pattern Variations
– Median Line and Fibonacci Synergy
– The 4-Point Continuation Pattern
– A Pattern Trade Entry Technique
Advanced Fibonacci Trading Concepts is designed to help satisfy Critical Element number one of the ‘Plan for a Trade’, the Potential Trade Area (PTA). This book focuses on the use of Fibonacci numbers for determining potential areas of support and resistance, where trades may be considered, using unique concepts developed at Kane Trading. Multiple new Fibonacci numbers are derived (including the now world-famous .886, from the person who quantified the number for the first time), and their use is detailed. The book goes on to develop the concept and technique of Fibonacci groupings, tight areas where multiple Fibonacci numbers come together to form a potential trade area. The concepts with regard to groupings are totally different than the ‘standard’ use of the basic Fibonacci numbers coming together in a ‘wide’ area, as presented by other authors. The techniques described in this book are based on totally new and unique ideas with regard to ‘harmonicity’ and the use and development of ‘layered support or resistance’. The latter term is not related in any way to the technique some authors present about trading a second, ‘wide’ grouping if the first one fails. The layered support or resistance foundation, as well as the ‘harmonicity’ concepts, as defined in the Kane Trading methodology, are totally unique and were developed here at Kane Trading. In fact, the processes in this book can’t even be done without the multiple new Fibonacci-derived numbers that were developed for the first time anywhere here at Kane Trading. The entire process is laid out in step-by-step detail, with multiple examples. There is also a brief chapter on a possible relationship between some Gann numbers and Fibonacci numbers, as well as a very intriguing introductory chapter on Fibonacci time relationships.
Entry Techniques is designed to help satisfy Critical Element number two of the ‘Plan for a Trade’, the entry technique. Once a potential trade area is determined, the next step is to determine an entry technique. A key aspect of the Kane Trading methodology is the use of various timeframes, based on the ‘three timeframe’ philosophy (entry timeframe, traded timeframe, and ‘context’ timeframe), and all this is done without ‘indicators’. This use of various timeframes is one of the many ways that the material in this book differs from the ‘standard’ approach to entry techniques that is available from most sources. The methods for choosing the appropriate timeframe for applying the technique(s) are a critical aspect of the entire process. It’s not just the use of an entry technique that is emphasized; it’s the knowledge of what timeframe to apply the technique on that is so important to the understanding of this part of the Kane Trading methodology. There is a strong emphasis on timeframes throughout this book, with detailed discussion on how to choose the entry timeframe. Entry Techniques provides a vast assortment of potential entry triggers, and discussion on ways to vary them. Another large part of the Kane Trading philosophy is to encourage traders to test and experiment with techniques, and find what works for them and their particular ‘Trading Plan’. This book outlines eight distinct techniques, with multiple variations, in order to provide a multiplicity of choices for the trader. The last chapter is based on a unique combination of entry triggers and timeframes developed at here at Kane Trading, and is entitled ‘A Cool Trick’.
Trading ABCD Patterns is designed to help satisfy Critical Element number one of the ‘Plan for a Trade’, the Potential Trade Area (PTA). This book takes a unique look at the ABCD pattern, adding many new twists and variations. This is a key pattern used at Kane Trading, and it is perhaps the most overlooked Fibonacci-related pattern out there. Many people are familiar with the 5-point pattern, but they don’t realize the pattern is first and foremost built around an ABCD pattern. Understanding this relationship is key to advancing the trader’s skill with respect to 5-point patterns. The approach taken in this book is unlike anything presented in other sources, and takes the use of the pattern up to a new level. The use of ‘context’ for filtering ABCD pattern trades was developed here at Kane Trading, as outlined in Multiple Timeframes and ‘Context’, and is clearly laid out in this book, as well as similar ‘context’ discussion with respect to 5-point patterns. The book uses many of the techniques developed in Advanced Fibonacci Trading Concepts, as well as integrating the new Fibonacci numbers from that book into the ABCD pattern. There is a well-detailed, step-by-step outline on how to combine the groupings techniques with various pattern criteria, to qualify potential trades. The ABCD patterns are broken down into four categories, with discussion on trading aspects of each type. The final chapter is a stimulating look at Fibonacci time relationships in the patterns, designed to provide some serious food for thought for the reader.
Trailing Stops is designed to help satisfy part of Critical Element number four of the ‘Plan for a Trade’, trade management. Trailing Stops is an intensive look at techniques for attempting to maximize profits on trend trades that are moving in the trader’s favor. By trailing a stop on all or part of a trade, the trader can allow the market to run, hence letting the market action, itself, decide when the move is over. This technique is very dynamic, adjusting to the price action in the trading vehicle, as opposed to many of the ‘static’ techniques so commonly used. There are nine distinct techniques with multiple variations presented, again with the emphasis on encouraging traders to experiment and decide on what may be of use to them, and their particular ‘Trading Plan’. The last chapter combines various techniques and discusses scaled exit strategies.
Multiple Timeframes and ‘Context’ is the first book written at Kane Trading entirely at the request of the readers. This book covers the unique Kane Trading perspective on use of multiple timeframes in trading, as well as the use of ‘context’ on all trades. The center-point of the methodology is what is termed the ‘traded timeframe’. This is the central timeframe from which all subsequent analysis radiates. The additional timeframes are a lower entry timeframe, and one or more higher ‘context’ timeframe(s). It is in the ‘context’ area that the book really begins to present vastly new, unique and iconoclastic ideas. This material was derived from years of research at Kane Trading, taking a realistic look at the weak areas in the accepted methods of pattern trading, and seeking to improved the techniques. This book presents new, revolutionary concepts with respect to pattern trading and the use of ‘context’ as part of the potential trade screening process. Even the multiple timeframe concepts are completely unique, and unlike anything that is currently available. For example, the multiple timeframe techniques used at Kane Trading are not based on any indicators. They are price driven, with pattern and Fibonacci techniques incorporated into the process. This book takes pattern trading, whether they are 5-point patterns or simply ABCD patterns, to the next level. At Kane Trading this is critical material that is used to form the basis of every potential trade setup that is considered. It should be noted that the techniques presented are applicable to any trading methodology, though, even if it is not pattern or Fibonacci based. Be forewarned: this material will go against many of your pre-conceived notions, and many of the ideas that you have been taught about pattern trading.
Trade Management is designed to help satisfy Critical Elements number three and four of the ‘Plan for a Trade’, trade size and trade management. This book is very comprehensive, extending to aspects outside of the ‘Plan for a Trade’ (also called ‘The Critical Elements of a Trade’), and includes many aspects that fit into the master ‘Trading Plan’. Topics include discussion on percentage of capital risked per trade, maximum percentage of total capital per trade, reward/risk, winning percentages, expected value, correlation risk in trades, calculating trade size, management aspects of different trading vehicles, protective stop losses and variations on setting them, initial movement of stop losses, moving of stop losses as a trade progresses, the ‘other side’ to commonly taught management plans, and management of advanced winning trades (including detailed discussion on scaled exits). This book covers a large group of management topics, covering areas from before the trade starts until after the trade is closed. By comparison, Trailing Stops specifically covers one aspect of trade management, using one broad concept (although it has many unrelated variations within that one concept), and that is trailing a stop on a winning trend trade. That book is not designed to be a comprehensive guide to trade management; it is designed to be a comprehensive guide to Trailing Stops. Trade Management will not cover the trailing stops concept in the detail that the book Trailing Stops does. These two books are designed to complement each other. Of all the topics in Trade Management, I felt that trailing stops required its own book, so the level of detail needed on that topic could be put forth. Trade Management does, however, introduce the latest, most favored trailing stop/scaled exits technique developed and used at Kane Trading. The presentation of this new technique in Trade Management is the first time that this method has been presented anywhere.
A Totally New 5-Point Pattern is designed to help satisfy Critical Element number one of the ‘Plan for a Trade’, the potential trade area (PTA). This book is far more than just a book with a new 5-point pattern, though. The book introduces two brand new, never before released or discussed Fibonacci-derived numbers. These are the numbers, mentioned in the free article Some discussion about Advanced Fibonacci Trading Concepts and the Kane Trading methodology, that Jim worked on for four years. They are the basis for the new pattern, but also have a far-ranging use beyond the pattern. The book integrates the numbers into the Kane Trading methodology, as laid out in the other books, and shows how critical they are to the process. The book makes a case for why the two non-Fibonacci-derived numbers that so many use are not valid harmonic numbers at all, and that these new numbers are the true harmonic numbers for that area. The book also delves very deeply into the formerly proprietary concepts at Kane Trading of ‘harmonicity’ and ‘layered support and resistance’. These are concepts that are the fundamental basis for the material in Advanced Fibonacci Trading Concepts, but, as the free article mentioned above explains, perhaps weren’t explained all that well in that book. The issue is rectified in this book, in great detail. There is also some additional work on the numbers laid out in Advanced Fibonacci Trading Concepts, plus derivations of three numbers that were left out of that book. This is not just mathematics here for the sake of ‘fun with numbers’; this is material that has been requested, time and again, since Advanced Fibonacci Trading Concepts was released. It is material that has practical significance to any Fibonacci-based ‘Trading Plan’, and the reasoning behind that is explained in very clear detail. The book then goes on to cover many new pattern concepts that have never been discussed before, from any source. There is a new idea called the ‘Pattern Stretch’ concept, which greatly aids in the visualization and understanding of how the patterns relate to each other. The book explores many new mathematical and geometric aspects of the 5-point pattern structure, and relates these aspects to actual trading. Discoveries and conclusions of this work are summarized in tables, designed for ease of use in applying the material to actual pattern setup construction. The book also includes a chapter that continues on with the work laid out in Multiple Timeframes and ‘Context’, in the chapter entitled ‘Pattern Structure’. All the latest information developed at Kane Trading with regard to 5-point patterns, and trading them, has been put into this chapter. And like the entire book, it puts the emphasis on the patterns in the ‘context’ of using them for real trading. All the latest ideas about the patterns, their structure, their tendencies in real trading situations, and so on, are included. In the opinion of the author, this book is the most advanced, cutting edge, innovative, and yet still practical book out there right now on the topic of advancing a Fibonacci-based ‘Trading Plan’.
Four ‘New’ ABCD Pattern Variations is designed to satisfy Critical Element number one of the ‘Plan for a Trade’, the potential trade area (PTA). This book lays out four new ABCD pattern variations developed here at Kane Trading. These new patterns have become a predominant method for trade entry at Kane Trading. This is far, far more than a book that simply shows some new setups, though. There is extensive discussion on the nature of corrective structures, and how that information is of practical use in the Kane Trading methodology. As always, the focus is on the trading aspects of the patterns, and not on theory. There is extensive discussion on the superficial resemblance of some of the pattern structures to Elliot wave based corrective structures, with detailed explanations about how they differ, as well as discussion on the variations that have no analogous patterns anywhere. The book goes into great detail on how the Kane Trading methodology is applied in a step-by-step manner to these patterns, with a lot of discussion on a very key, critical aspect of the methodology, and that is harmonicity. This book goes into the uppermost level of detail about the Kane Trading concepts on harmonicity that has been put into writing to date. The book also introduces yet another new Fibonacci-derived number which is crucial to the methodology, and includes discussion on the method of derivation of this number and what the motivation was for quantifying this number. This book is the first ‘official’ release of this new number. Four ‘New’ ABCD Pattern Variations was written in conjunction with Median Line and Fibonacci Synergy, and the book integrates some of the techniques from that book, just as Median Line and Fibonacci Synergy integrates the patterns from this book into the techniques shown there. These two books are heavily intertwined, as the concepts of synergy become a predominant theme at Kane Trading. In the author’s opinion, along with Median Line and Fibonacci Synergy, these two books take the Kane Trading material to another level.
Median Line and Fibonacci Synergy was written to provide a reference for the most advanced work being shown during Kane Trading mentorships, and in the members’ section. Several completely unique median line techniques have been developed here at Kane Trading, and they have become fully integrated into the methodology. At this point very few setups are considered without a full implementation of the techniques laid out in this book. With these techniques being an inseparable part of the methodology it became necessary to have a book showing these key concepts in order for the book set to be more ‘complete’. The author has received many comments from very advanced, experienced median line traders who have seen some of this work (such as in the members’ section), and the comments have been along the lines of ‘absolutely incredible what you do with median lines’ and ‘incredible the level that you operate on’. The approach used in developing the line techniques is similar to the approach used with the Fibonacci work, and that was to throw away or ignore all convention, and think way outside the box, and pursue anything that seems to help, no matter how unconventional. This has led to some fascinating discoveries about how the techniques seem to work with the ‘usual’ Kane Trading methodology. The key conclusion was that there seemed to be a synergy between the newer line work and the ‘usual’ techniques involving patterns, groupings, ‘context’, and so on. It seemed like the whole was greater than the sum of the parts. (This is, of course, just the opinion of the author, and readers are encouraged, as always, to determine on their own if the material is useful for them for their own ‘Trading Plans’.) The book does not show or describe any of the ‘conventional’ median line trading techniques. The focus is solely on the newly developed techniques, and how they fit in with the ‘usual’ Kane Trading methodology in this quest for synergy in the PTA. There is a strong integration of this new work with the previous work, and especially with ABCD patterns, both the ‘standard’ varieties, as well as the newer ones from Four ‘New’ ABCD Pattern Variations. Since the techniques in this book are not designed to be ‘stand alone’, the emphasis is on the application of the methods within the ‘context’ of the ‘usual’ methodology. Given the completely unique nature of the Kane Trading methodology as it is, when blended with a completely innovative approach to median lines, the final result is unlike anything that has ever been done anywhere.
The 4-Point Continuation Pattern is designed to help satisfy Critical Element number one of the ‘Plan for a Trade’, the Potential Trade Area (PTA). This article introduces a new pattern developed at Kane Trading. Although not a very common pattern, it can point to some very useful potential trade areas when it does appear. The pattern, by the very nature of the setup, can allow a very tight (but still technical) stop loss to be placed. This pattern has some superficial resemblances to a triangle pattern, but the similarities end on the surface. The article outlines a detailed list of conditions and criteria necessary for a setup to be considered a ’4-Point Continuation Pattern’. Some of these criteria are very Fibonacci intensive, and make use of the grouping technique from Advanced Fibonacci Trading Concepts. The pattern seems to be equally common in uptrends or downtrends, and can be found on essentially any timeframe. The pattern appears not only in stocks and stock indices, but also in commodities. For instance, one example in the article is in the dollar index. This article should be of interest to any trader who likes patterns and Fibonacci, and who is looking for another technique for finding potential trade areas.
A Pattern Trade Entry Technique is designed to help satisfy Critical Element number two of the ‘Plan for a Trade’, the entry technique. Once a potential trade area is determined, the next step is to decide on an entry technique. A Pattern Trade Entry Technique is specifically designed for use with 5-point pattern trades as the potential trade area (PTA). The technique makes use of a multiple timeframe concept, but yet it is still very easy to set up and implement. The article includes discussion on various nuances of the technique, plus observations and tips on its application. A Pattern Trade Entry Technique is specifically designed as an alternative to ‘fading’ the entry, a method commonly used by 5-point pattern traders. The article is not written to convince the reader that this technique (or any other entry technique) is better than ‘fading’ the entry. It is written for those that have already decided they want an alternative to the fade entry. This technique is currently setting up on about seventy percent of the 5-point pattern trades that meet the Kane Trading criteria. The remaining trades are entered using the techniques from Entry Techniques. The technique is also being used at Kane Trading with The 4-Point Continuation Pattern.