Trading method: One-way trading
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Definition of "One-way trading"?
One-way trading is a trading method based on using two time units.
The largest time unit (trend chart) lets traders determine a trading direction based on the various trading tools and their trading style (with or against the trend).
The smallest time unit (signal chart) gives traders buy or sell signals.
Traders normally only take into account signals that are appropriate for their chosen trading direction.
Their decisions are also based on technical analysis tools
One-way trading allows traders to focus on certain signals
Signals that oppose traders’ one-way trading direction are irrelevant, traders don’t normally take them into account.
Traders’ trading is then structured and leaves little room for emotions. This is one of the keys to successful trading.
Moreover, by fixing and respecting a single direction to trade, traders are no longer lost. No more hesitation between "Buy" and "Sell:
- If the traders’ one-way trade is set LONG (Long only); they either enter to buy on a buy signal shown on their signal chart; or they exit a LONG position on a sell signal shown by their signal chart.
-If the traders’ one-way trade is set SHORT (Short only); they either enter a short position on a sell signal shown by their signal chart; or they exit a SHORT position on a buy signal shown by their signal chart.
Extract from the book "One-way trading" (only available in French under "Trading a sens Unique")
4th cover of the book "One-way trading”:
“One-way trading": This is the indispensable element that must be applied by all traders using technical analysis to speculate on all types of markets.
The basic concepts are presented, but the objective of this book is to make traders understand the need to adopt "one-way trading".
“One-way trading" is not a "martingale", nor a miracle strategy, but a trading method that breaks with several myths:
- A trader capable of capturing all market movements, up and down.
- Buy/sell signals always win.
- Buy signals at the lowest point and sell signals at the highest point.
“One-way trading" adapts to all strategies, simple or complex, with or against the trend.
Whether traders are scalpers, day traders or swing traders, to obtain a structured and secure trading plan, they should apply a "one-way trading” strategy.
