veritas trading manual 2009 1st edition-sample

8/14/2019 Veritas Trading Manual 2009 1st Edition-Sample

1/9

THE COMPLETE GUIDETO BECOMING A

BY EAMON PHILLIPS


2/9


3/9

A Trading Bible

Copyright 2009 Veritas Traders All rights reserved worldwidePage 3

www.veritastraders.com

What is a chart?You have likely seen charts many times before. They come in many different styles, but all have thesame underlying function. Let's take a look at what at chart does

A trading chart measures:

x Time

x Price

This is the basis of most trading charts. They measure the PRICE and a certain point in TIME

The chart below measures " PRICE " and " TIME " by using a simple line chart. This chart looks at the

closing price of the FTSE 100.

Figure 1: FTSE 100 Monthly Line Chart
http://www.veritastraders.co.uk/index.php?show=18


4/9

A Trading Bible



We create a line graph of the price over a given period of time. Therefore, this chart represents theclosing price of the FTSE 100 at the end of each month.

The chart shows the price at the end of the trading month, however this could be the closing price at

the end of each week, day, hour or minutes.

Time FramesWe use different time frames to obtain more information about the price on the chart over a period

of time.

As you saw in figure 1, each plot represented the closing price at the end of the month. If you wantto examine the closing price at the end of every week, this will give you four times as much

information. If you want to examine the closing price at the end of every day then you have 20 times

more information.

Therefore the smaller the intervals the more information you can obtain.

Here are the most common intervals used in trading:

Monthly Weekly Hourly15 minutes 5 minutes 1 minute


5/9

A Trading Bible



Figure 2 : Weekly Line Chart

Figure 3 : Daily Line Chart
http://www.veritastraders.co.uk/index.php?show=180


6/9

A Trading Bible



Figure 4 : 15 Minute Line Chart



7/9

A Trading Bible




The charts above show the most basic form of price representation.

Bars and Candle Sticks

The need for more information.

As traders, we need more information. In addition to knowing the opening price, we also need toknow:

1. Range (highs and lows)

2. Closing price

This is called the OHLC, Open High Low Close.


8/9

A Trading Bible



Figure 7 : Open, High, Low and Close Bars

Figure 8 : Candle Stick Version
http://www.veritastraders.co.uk/sign-up.php


9/9

A Trading Bible



When OPEN HIGH LOW CLOSE (OHLC) are applied to our charts, they give us the information weneed to look at trading charts to trade from them successfully. The reason is simple: now we have 3

times more information compared to before.

veritas trading manual 2009 1st edition-sample

Documents