Ram Trading by Lorne W. Rae
With this simple daytrading method using candlestick formations and the opening action, this author
demonstrates a high-probability, low-risk trading strategy that gets you in
and out in a single day.
Just as the battering ram
had a single purpose in
the earliest wars —
namely, punching a hole
in a barred city gate —
what I refer to as the Ram
trading method is focused on a singular goal: to identify and implement
low-risk trades that make money.
To a trader, time is all-important. For stock traders,
the shorter the time interval between buys and sells,
the less likely it is that something will go wrong. Ram
trading minimizes this risk by concentrating on the
shortest of trading time units — a fraction of a trading
day. For consistency’s sake, the terminology in this
analysis assumes that "right now" is just prior to
today’s opening of trade.
Candlestick analysis is one technique that concentrates on short-term price movement. It is an excellent method for determining today’s likely price
trend. There is extensive literature about candlesticks, and there are software packages to do the
charting. Candlesticks are simple to use, and all a
trader needs are three or so days of prior price action
to produce proper results.