A Dragonfly Doji is a single candlestick pattern that is a type of doji where the wick (or shadow) of the candle is much longer than the body. The large wick represents a large trading range during the candle time period and the small body represents the open price and closing price being very close […]
What is a Dragonfly Doji? Read More »
Bayesian statistics is a systematic process for describing educated guesses during uncertainty using mathematical probability. The Bayesian interpretation of probability expresses degrees of belief in a specific event happening. The amount of belief can be determined by prior knowledge about an event, like results of similar events in the past, experimenting about potential outcomes, or
Bayesian Statistics in Trading Read More »
Moving averages are not predictive they are reactive to price action. They show trends on charts when they go vertical and can show that price is in a range when a moving average is horizontal. Moving averages are technical trading tools. The answer to “Which moving average is best?” is the question “What’s your time
Which Moving Average is Best? Read More »
A pin bar candlestick pattern visually shows when price reverses in a time frame back near its starting point. A pin bar candle has a long tail or wick and a small body. The body of a pin bar candle should much smaller than the size of the wick. A good quantified pin bar candle
What is a Pin Bar Candlestick Pattern? Read More »
In the stock market the big money is what moves the markets over the long term. The biggest money mover of all is the Federal Reserve and central banks around the world, their quantitative easing, interest rates, money supply, and monetary policy can create the larger market environment itself. Central banks drive markets with liquidity
Stock Trading Strategies to Follow the Big Money Read More »
Here is a list of the current top 20 ETFS with the highest returns year to date in the market in 2020 as of today. $FNGU MicroSectors FANG+™ Index 3X Inverse Leveraged ETN +221.94% return year to date. $FNGO MicroSectors FANG+ Index 2X Leveraged ETN +159.76% return year to date. $TAN Invesco Solar ETF +139.09%
Current Highest Return ETFs Year to Date 2020 Read More »
A moving average ribbon indicator is a set of multiple moving averages of different timeframes placed on a chart all at one time. A ribbon instantly shows price action in relation to all the different moving averages. The Steve Burns Moving Average Ribbon is created with five different length moving averages. Exponential moving averages are
Moving Average Ribbon Signals Read More »
A traders emotions, ego, and thinking can become very distorted when real money is at risk in the markets. Hormones like serotonin, dopamine, and adrenaline can cause impulses and emotions to drown out thinking and decision making skills. Emotional intelligence is one of the most important skills a trader can possess, this is the ability
The Psychology of Trader Misjudgement Read More »
The 200 day moving average is one of the most popular price levels used in technical analysis. It is used in classic charting to define uptrends and down trends in markets. Here are twelve ways that the 200 day moving average can be used in technical trading: A close below the 200 day can signal
200 Day Moving Average Backtest On 5 Popular Stocks Read More »
Day trading is a high speed endeavor where a trader enters and exits trades on the same day before the market closes. Day traders try to capture fast moves on intraday charts usually with larger size than swing traders or trend traders. They like it that they carry no overnight risk and look for fresh
Best Day Trading Books Read More »
The Steve Burns Ribbon technical indicator is a new tool for the technical analysis of stock trends by combining key moving averages. The MA Ribbon by Steve Burns is currently available on the TrendSpider.com charting platform and can be searched in indicators and loaded onto charts. The moving averages in the Steve Burns Ribbon can
New Technical Indicator: Steve Burns Moving Averages Ribbon Read More »
Backtesting shows a trader how their signals for entries and exits would have performed in the past. While a backtest of past data doesn’t guarantee that a signal will work in the future it can quickly show you what didn’t work. What a backtest is really showing a trader is that an entry and exit
Trading Books with Backtesting Results Read More »
Panic and stress love company. Staying calm when other traders and investors are emotional gives you an edge trading. When they’re making mistakes you are making good trading decisions. When they are panicking into a chart rising fast you are locking in profits, when they are getting stopped out lower you are getting in at
Why Staying Calm Gives You An Edge Trading Read More »
The Butterfly Pattern uses the identification of quantified structures on a chart that has specific and sequential Fibonacci ratio alignments that show harmonic patterns. These patterns calculate and measure the Fibonacci aspects of the price action structures to signal reversal points with good odds of success. Traders using harmonic patterns as a trading method believe that
Bearish Butterfly Pattern Explained Read More »
An algorithm is the steps in a process or a quantified set of rules that is followed for calculating a solution to a problem, an algo is usually programed by using a computer. Algorithmic trading is a defined method commonly using automated pre-programmed trading instructions for entries and exits filtering through the variables of time
Best Algorithmic Trading Books Read More »
The following is a guest post. Why Is It Necessary To Discipline Your Daily Trade Routine? Image Credits Becoming a professional forex trader takes years of commitment and hard work. Your life pretty much mandates that you set some parameters and checks in your daily life that cohesively facilitates your actions and responsibilities. One of them
Why Is It Necessary To Discipline Your Daily Trade Routine? Read More »
There is a common saying on Wall Street “Let winners run and cut losers short.” This quote tries to express the principle of creating big wins or small losses. Creating a high risk/reward ratio through the use of trailing stops for profitable trades and stop losses for unprofitable trades is the foundation of profitable trading.
The Art of Cutting Your Losses Read More »
One common trading strategy is trading market pullbacks on charts. A pullback trading strategy buys a reversal in an established uptrend when it reaches a technical chart level like a key price support area, a bounce around an important moving average, or an oversold technical reading. A pullback trader looks to enter an uptrend when
Pullback Trading Strategies Read More »
Here is a list of the best books on options trading based on Amazon sales, reviews, ratings and author popularity. It is important to have a full understanding of the options market and pricing model before diving into options trading with real money. Options are derivative contracts and complex instruments where time, strike price, and volatility
Best Books On Options Trading Read More »
One of the biggest errors that new traders make is trading too big. If you trade too large of a position size you will inevitably give back any profits you earn with your first losing trade or string of losses. When you are starting out as a new trader: “Trade small because that’s when you are
Trading Better Before Trading Bigger Read More »