Many traders don’t understand what it means to have an edge in trading. It is simply an advantage in the markets that over time leads to your winning trades adding up to more than your losing trades. There are potential edges in every mark... Read more
Most traders are familiar with the most popular trading book of all time Reminiscences of a Stock Operator by Edwin Lefèvre that describes Livermore’s life through a fictional character, but few know that he wrote a trading book near the e... Read more
The Bullish Tasuki Gap candlestick pattern is a three-candle continuation pattern during an upswing in price that signals the uptrend will continue. The first candle in the pattern is a large bullish white or green candle making a higher high a... Read more
What does “Memento Mori” mean? It is Latin for ‘remember that you must die’ [one day]. The most successful generals in ancient Rome were awarded a “triumph” entry into the capital city on their return from victorious camp... Read more
Options are traded on contract markets and unlike stocks there is someone short and someone long every option at all times. Options are a zero sum market as there is always a winner and a loser in every price move. Someone has to write every con... Read more
Bullish markets and bearish markets are very different in the sentiment and price dynamics. Money made in bull markets can be given back in bear markets so a bullish bias can be dangerous when a real long term bear market arrives. People tend to... Read more
The RSI indicator buy and sell signals are based on oversold and overbought conditions on a stock chart. The RSI is a measurement of price moving too far and too fast in one direction and as the RSI gets extended farther from the 50 RSI middle l... Read more
Stock prices falling is perfectly normal in the market. Pullbacks are not something unusual or to be worried about in the stock market until they trigger a potential bear market. Stock market drop parameters: Down -5% is a pull back. Down... Read more
What traits separate the minority of profitable traders from the the majority of unprofitable traders in the markets? Here are the 12 key traits I have seen and studied over the past three decades in the financial markets that separate successf... Read more
Guest Post by Dan @TrendSpider The Volume Indicator (RVOL) Relative Volume is calculated by taking the ratio of current volume relative to an average. It gives you a quick way to see how much volume relative to a period and which direction it is... Read more
