Bestselling trading author Guy Cohen introduces the OVI indicator to stock trading
More fortunes are made from trading stocks than any other financial instrument, and these windfalls are available to anyone who has access to the right information.
Presenting the methods used by the best traders in the market, The Insider Edge: How to Follow the Insiders for Windfall Profits uses options transaction data to reveal what "informed traders" are doing, and how anyone can take advantage of these techniques.
Whether the markets are choppy or trending, it always pays to wait for a clear opportunity. Any good trader knows that they need an Edge to excel, and this book demonstrates how the combination of specific chart patterns, author Guy Cohen's proprietary OVI indicator, and a robust trading plan, when combined, will deliver success.
In The Insider Edge, Guy Cohen reveals:
- How you can profit from options without having to trade or even understand them!
- Why the smart money often gravitates to the options markets.
- How options transactions can often reveal the direction of the stock price.
- How you can trade using information typically reserved for the pros.
- A trading plan the delivers maximum safety and windfall profits.
- How to use his proprietary OVI indicator online for free, so you can start to follow the insiders.
The author emphasises that The Insider Edge is for anyone who wants to trade stocks. No options knowledge is required to benefit from this book. His method involves observing what the smart options traders are doing, and then following them. This is what gives you The Insider Edge.
March 8, 2008 3
March 2008 5
March 2009 6
April 26, 2010 7
March 2011 8
Summer 2011 9
September 7, 2011 10
“Informed Trading” and the OVI 11
The Insider’s Rationale 12
Trading Breakouts 13
Chapter 1 The Most Popular Chart Patterns: Why Chart Patterns Are So Important 15
Price Bars 16
Support and Resistance 20
Flag Patterns and Consolidations 33
Head and Shoulders 43
Learning Points 51
Chapter 2 The OVI: Guide to the Insiders: Introduction to the OVI 53
What is the OVI? 59
When to Use the OVI and When Not to Use It 64
The OVI with Stocks 78
Learning Points 105
Chapter 3 Flags and Channel Breakouts in Detail: Focusing on the Patterns That Work Best with the OVI 109
Bull Flags 110
Bear Flags 118
Flags with a Strong OVI Signal 127
Channel Breakouts 128
Setting the First Profit Target 134
Learning Points 146
Chapter 4 The Trading Plan: The Complete Trading Plan 151
Order Types 153
The Trading Plan 155
Learning Points 214
Chapter 5 Putting It All Together 217
Summary of the OVI Trading Method 219
A Few More Examples 221
Action Steps 226
Summary of Tools for You to Use 239
Take the Next Step Now! 240
About the Author 241