Linda Raschke is one of the female freaks in the financial market, which is seen as a man's game. But she showed the world that trading is not just for men and the fact that women are also very good traders. Linda Raschke started her trading career in 1980 and became one of the most respected traders. She is currently the chairwoman of two financial companies, LBRGroup and LBR Asset Management.

Linda Raschke created many professional trading systems that are still in use today. Readers must remember the book "Street Smarts" written with Larry Cornors with a series of models such as Three Indians, Wolfs Waves, Range Expansion, Turtle Soup. Linda Raschke is considered an excellent trader and money manager having not lost money for the past 3 decades.

  1. Buy at the first correction (first pullback) after the price makes a new high. Sell ​​immediately after the first rally (first rally) after the price makes a new low.
  2. If the market is strengthening or weakening, it must show momentum the next day (for example, there must be a follow through day after a strong rally).
  3. The best reversals should occur in the morning, not in the afternoon.
  4. The wider (larger) gaps appear, the higher the probability that the trend will continue.
  5. When the market is trading at the top or bottom of the previous day, it is a good indicator of whether the market is strengthening or weakening.
  6. The previous day's tops and bottoms are important pivot points that show where buyers and sellers are in the previous day. Therefore, watch to see if the market retests or reverses from these pivot points.
  7. The last trading hour often tells us the truth about the current trend. The “smart” money usually comes out at the last trading hour. As the market still closes strongly bullishly, the uptrend will continue in the next session. When an uptrend ends, it usually reverses in the morning and then closes down in the morning.
  8. The high volume at the close implies that the trend will continue into the next morning towards the last half hour of trading. In a strong trending market, watch for the possibility that the price will return to the main trend at the last hour of trading.
  9. The price bracket of the first trading hour usually forms the basis (translator: support, resistance, price bracket) for the entire trading day that day.
  10. If the price rises sharply during the first hour of trading, it is usually an early signal that the trend will increase strongly that day.
  11. There are four fundamentals of time-tested price action. Charles Dow was the first to mention them. These four principles are (1) The trend is more likely to continue than to reverse. (2) Growth momentum precedes price. (3) Trends usually end at a climax. (4) The market often alternates between the Range Expansion and the Range Contraction.
  12. The financial world is created by human behavior. No one can know what will happen in the future. Therefore, the successful trader is not one who predicts what is going to happen but must know how to react to every situation.