Welcome to Day Trading With Lines In The Sky

My name is Richard L. Muehlberg. I will show you how I day trade using futures, ETFs and the "lines" approach (intermarket + time-of-day + eSignal linear regression channel analysis). My real accounts are private, but I make my 3-page daily trading diary entries, including my simulated account statements, available to subscribers.

For a hard-copy edition of my Quick Introduction, visit www.amazon.com. Search under Quick Introduction R.L. Muehlberg. For Adobe PDF downloads of my work, see below.

My trading diary entries, guides and articles available through this site are Adobe PDF downloads. If this is your first time ordering an Adobe PDF download from my website, please click my Service page, FAQ and read "What is it like to buy a download?" You need Adobe Reader 8.0 or later to view my work. Get 9.3 free from the Adobe home page.

Problems? E-mail richardmue@yahoo.com.
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Steve A. from Florida: "I have found Richard's analysis of market conditions to be thorough and inspired. His analysis of how the markets interact has improved my market IQ and my trading results. His daily diary entries are required reading for me. Keep up the good work!"

Jim B. from Chicago: "From one who has followed Richard's daily trading diary entries for more than six months, I have found them to be exceptionally valuable both as a trading tool and a learning resource. The entries provide clear comprehensive insights into the truly complex nature of the markets enabling one to day trade profitably regardless of market conditions."

Tim M. from Ohio: "The lines approach is like a GPS guiding my entry, exit and swing trade management in ETF, Futures and Forex resulting so far in two months of highly profitable trading. I believe it dynamically evaluates Gann price and time principles so you always know where you are in a trade. I have mentored with Jack Bernstein and others, own 150 books and trading courses, and haven't achieved as much success before the 10 lessons and lines approach. It is an intuitive approach which gives me confidence to enter trades I wouldn't have previously."

See my lines-approach day trading diary archive in the upper left corner of this page:
2010 End of month reviews
2009 End of month reviews
2008 End of month reviews
2007 End of month reviews

See my lines-approach day trading guides in the upper left corner of this page:
Volume 2 Master Your Skill
Volume 1 Acquire Your Skill
Quick Introduction

See my articles in the upper left corner of this page:
1)   Slow day trader die
2)   Do real traders paper trade?
3)   5% of day traders succeed. If you want to be one of the 5%, act like one.
4)   Day trade in cold (not hot) blood. Wait for an optimum moment to trade.
5)   Getting blindsided? Blame it on tunnel vision.
6)   Is fear preventing you from trading to your potential?
7)   Ready to quit?

See my 19-part series of Weekly Trading Articles on the eSignal home page:
Search under: Muehlberg (www.esignal.com)
UPCOMING:
Intermarket Day Trading with eSignal LRCs
(Part 19 of 19: Rich Traders are Reality-Tested)
(Part 18 of 19: Beta Booster...Trend-Swing-Day Trader!)
(Part 17 of 19: Restricted Trading for Impulsive Traders)
(Part 16 of 19: Consensual Limits and Standard Increments)
(Part 15 of 19: The Extraordinary Power of Simple Moving Averages)
(Part 14 of 19: Bull and Bear Traps...Seeing What Isn't There)
(Part 13 of 19: Not-So-Secrets of Catching a Falling Knife)
(Part 12 of 19: Timing...Wait Till 3:45 p.m. to Buy a Down Day)
(Part 11 of 19: Swing Trader's Mantra and "The Rule of 5")
(Part 10 of 19: Hot-Money Tactics and LRC 6-month Charts)
(Part 9 of 19: Hot-Money Tactics and LRC 11-Day Charts)
(Part 8 of 19: Hot-Money Tactics and LRC 3-Day Charts)
(Part 7 of 19: Hot-Money Tactics and LRC 1-day Charts)
(Part 6 of 19: Fractal Charting and Multiple Levels of Observation)
(Part 5 of 19: Good Day Trading is Good Trend Trading)
(Part 4 of 19: What "Helmet Kill" Can Teach Traders)
(Part 3 of 19: What "Poker Tells" Can Teach Traders)
PUBLISHED:
Jul 09 2010 (Part 2 of 19: Spyder on a Mirror...The S&P 500 versus Bonds)
Apr 09 2010 (Part 1 of 19: How Price Moves)

See my articles in Futures magazine:
Search under: Muehlberg (www.futuresmag.com)
Feb 2010: Failed setups: Inverse predictive power
Nov 2009:  For safe profits, trade a delayed reaction
Sep 2009:  Trade an intraday hook to safe profits
Aug 2009:  For safe profits, trade narrow intraday channels
Jun 2009:  Safe profits: Trade an intraday stair
Apr 2009:  Profiting from temporary market anomalies
Feb 2009:  Long the strongest, short the weakest
Jan 2009:  Start late, work hard, quit early
Oct 2008:  Using net flow value for algo profits
Sep 2008:  How algo trading is changing the landscape
Jul 2008:  Trading ETFs with round numbers
Jun 2008:  Reaping profits with regression analysis
Apr 2008:  Safe profits with bull and bear stairs
Feb 2008:  It's the close, stupid
Jan 2008:  Avoiding common trading pitfalls
Dec 2007:  Market relationships key to price moves
Oct 2007:  Using trend dynamics for day-trading profits

Trading Terms (source: various)
DAY TRADING
Day trading: Risk management discipline hallmarked by ending each trading day in cash.
Swing trading: Holding a position overnight or up to (arbitrary) two weeks.
GAME (GAMING)
Game (gaming): Trader-induced volatility. Gaming a series of trades ahead of/on a news release.
INTRADAY EXAGGERATION
Intraday exaggeration: Bidding (or offering) aggressively to force a high (or low) close.
Intraday exhaustion top: Resistance-supply (pivot point) that triggers a sharp reversal break.
Intraday exhaustion bottom: Support-demand (pivot point) that triggers a sharp reversal rally.
RELATIVE VALUE (RELATED, RELATIONSHIP, CORRELATED)
Relative value: Hypothesis that the price of one thing is a function of the price of another thing.
Correlated: Things that move in price in a direct relationship.
Inversely correlated: Things that move in price in an inverse relationship.
Delayed reaction: Hypothesis that relative prices can move asynchronously.
RUN...REST...RUN (DELAYED REACTION)
Delayed reaction: Hypothesis that different traders react at different speeds.
Hook: Conspicuous reversal in price direction.
Intraday "run...rest...run" pattern: Tendency of an intraday price run to occur in two waves.
Two-day "run...rest...run" pattern: Tendency of a price reversal to occur over at least two days.
Long the strongest: Hypothesis that an upside leader is durable and the safest thing to long.
Short the weakest: Hypothesis that a downside leader is durable and the safest thing to short.
STAIR
Stair: Bar chart pattern showing consecutively higher stair-step lows (lower stair-step highs).
Bull stair: Bar chart pattern showing consecutively higher stair-step lows.
Bear stair: Bar chart pattern showing consecutively lower stair-step highs.
Stair trading: Holding a position only while price runs along a stair.
STANDARD INCREMENT
Standard bull increment: Price distance between a current high and a preceding high.
Measured rally: Each new high is a standard increment above a preceding high.
Parabolic rally: Each new high is increasingly more than a standard increment.
Bull compression: Each new high is increasingly less than a standard increment.
Moving average rally: Rally that tracks along a moving average.
Panic buying (fast market): Buying that feeds on itself in a hyper cycle.
Standard bear increment: Price distance between a current low and a preceding low.
Measured break: Each new low is a standard increment below a preceding low.
Parabolic break: Each new low is increasingly more than a standard increment.
Bear compression: Each new low is increasingly less than a standard increment.
Moving average break: Break that tracks along a moving average.
Panic selling (fast market): Selling that feeds on itself in a hyper cycle.
TRADING INTELLIGENCE TEMPLATE (TEMPLATING)
Trading intelligence template: Graphic overlay used to interpret/predict price movement.
TREND
Trend: Dominant price direction (up, sideways or down) for a set period.
Trend trading: Holding a position only while price follows a trending parameter(s).
TRENDING PARAMETERS
Stair trading: See STAIR.
Moving average: Irregular line showing the average lows, highs or closes for a set period.
Moving average trading: Holding a position only while price runs above (below) an average.
Trendline: Straight line containing the price lows in an uptrend or highs in a downtrend.
Trendline trading: Holding a position only while price runs above (below) a trendline.
Price channel: Irregular or straight lines drawn to contain the lows and highs of a trend.
Curvilinear (price) channel: Irregular-line based channel.
Linear regression (price) channel (LRC): Straight-line standard-deviation based channel.
Lines approach: Day trading combining intermarket, time-of-day and linear regression analysis.
Intermarket analysis (stat arb): Using relative value to execute trading decisions.
Time-of-day analysis: Using key time periods to execute trading decisions.
Linear regression channel LRC analysis: Using LRC dynamics to execute trading decisions.

Train harder. Trade better.

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