“Trade what’s happening, not what you think is gonna happen.” – Doug Gregory Price action trading is the process of reacting to current price to make entry, exit, and holding decisions. It is replacing opinions and predictions with valid signals. A signal is a quantified reason to enter a trade, stay in a trade, and […]
What Is Price Action Trading? Read More »
There are many things people trade based on. They can trade based on a company’s fundamentals or macro economic trends. People can place trades based on their own beliefs, projections, predictions or personal opinions. Also psychological errors like the fear of missing out on a move, greed, or ego can lead to trading decisions. There
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Here is an example of a simple long term profitable trend following system for the $SPY and $QQQ ETFs. This is backtest data from trading the most popular of all moving average crossover signals the “Golden Cross” that is the 50 day / 200 day simple moving average crossover. This signal goes long when the
Golden Cross Trading Backtest on $SPY $QQQ Read More »
This is a Guest Post by Jake @TrendSpider. In this weekend’s analysis, we take a look at the broad market ETF’s SPY, QQQ, and Bitcoin. In this update, we view how the daily Raindrops(TM) and weekly hollow candles played out for the week while utilizing unique features from TrendSpider to do this. Make sure to set
Breakouts Versus Trendlines on the Charts Read More »
This is a list of things to look for as possible signs before a stock makes a top and rolls over. Alone these are just possibilities but the probabilities increase as more of the signs are in place. When the RSI gets near 70 on the daily chart for a stock and it becomes overbought
How to Identify A Trend Reversal In A Stock Read More »
“Successful trading depends on the 3M`s – Mind, Method and Money. Beginners focus on analysis, but professionals operate in a three dimensional space. They are aware of trading psychology their own feelings and the mass psychology of the markets. Each trader needs to have a method for choosing specific stocks, options or futures as well
Money Management in Trading Read More »
The MACD (Pronounced Mac-Dee), is short for moving average convergence/divergence, it is a technical trading indicator used in technical analysis to filter and trade price action. It was created by Gerald Appel in the late 1970s as a new tool for technical analysts. It is designed to reveal changes in price strength, direction, momentum, and duration for trends and swings. The
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Trend lines are the identifiers and connectors of resistance and support in chart patterns. Trend lines are ways to measure and quantify the path of least resistance for a chart in your time frame. Trend lines are identifiers of the trend in your trading time frame. Vertical trend lines must be drawn from left to
How to Draw Support and Resistance Lines Read More »
In trading as in life there are both risks and rewards to consider before you start any journey. You have to ask yourself are the risks of loss worth the possibility of the gains from the rewards. In trading your risk is created on entry by a combination of your position sizing and stop loss if
The Risk vs Reward in Trading Read More »
The goal of a trend following system is to capture trends for big profits and cut losses short. A trend follower needs a diversified list of assets to trade in different markets to always have the opportunity to capture a trend where ever it happens. A good trend following system will have backtested signals on
A Simple Trend Following System Read More »
The 50 day moving average is the current resistance on the $SPY chart. The $295 price level has also acted as strong resistance. Current support is the $282.50 price level. RSI is neutral but slightly bullish at 52.19. MACD currently has a bullish crossover. The Average True Range declined late last week to 4.19. The
The Support and Resistance Levels on the $SPY Chart: 9/1/19 Read More »
This is a Guest Post by Jake @TrendSpider. In this weekend’s analysis, we take a look at the broad market ETF’s SPY, QQQ, and Bitcoin. In this update, we take a look at how the monthly candles closed for August and what the month of September will start with. Make sure to set your alerts on
Short Term Bulls Versus Long Term Bears Read More »
“ I always laugh at people who say “I’ve never met a rich technician” I love that! Its such an arrogant, nonsensical response. I used fundamentals for 9 years and got rich as a technician.” – Marty Schwartz Many people believe technical analysis is complete silliness. How can someone make money on lines and patterns
Does Technical Analysis Work? Read More »
“Predictive technical analysis is chart/pattern reading. Trend following, on the other hand, is reactive technical analysis – a diversified portfolio perspective of markets using momentum indicators.” – Michael Covel Trend following is a trading strategy which attempts to profit from long-term or short-term moves in price action that happen at times in financial markets. Trend
Best Trading Books on Trend Following Read More »
What is the best back tested trading strategies with moving averages? What is the best specific moving average signal for capturing stock market trends? After trading and backtesting data for years over the past 20 years of data I have an answer. I discovered one moving average crossover on the daily chart that backtested the
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I have primarily used candlesticks on my own charts for over a decade. I like them for how they visually represent prices and quickly show the contrast of the open, close and daily range. I studied how best to use them inside a trading system as confirmation of my existing signals. I was very happy when a
Candlestick Patterns Cheat Sheet Read More »
Bollinger Bands are a technical indicator created by John Bollinger in the 1980s. They were created to form a quantified visual trading range that was adaptive to dynamic volatility expansion and contraction. “Bollinger Bands are use a measure of central tendency as a base such as a moving average. They curves drawn in and around
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Here is an example of a simple moving average crossover strategy that beats buy and hold investing. This strategy combines two winning strategies, the golden cross 50/200 day and the stand alone price over the 200 day moving average system. These are both end of day signals based on the daily chart. Entry conditions: You go
A Moving Average Strategy that Beats Buy and Hold Read More »
The current chart is currently driven by headline risk but does have technical levels to watch. $SPY price remains over the 200 day moving average. This moving average is a long term bullish trend signal. The 10 day moving average crossed under the 50 day moving average this is a bearish signal in the short
Two Signals to Watch on the $SPY Chart: 8/25/19 Read More »
This is a Guest Post by Jake @TrendSpider. In this weekend’s analysis, we take a look at the broad market ETFs, SPY and QQQ, as well as Bitcoin. In this update, we take a look at how the longer term areas of support are still in play into next week. Make sure to set your alerts
The Key Trading Ranges on the $SPY and $QQQ Charts Read More »