No trading strategy works all the time because the market doesn’t stay the same. Markets change from range bound, to trending, and at times become very volatile but go nowhere. Quantified trading signals can be based on different types of price action patterns created in different types of market environments. Trend traders buy high in […]
Four Price Action Patterns Read More »
This is a Guest Post by Chuck McCleary @optionsappetite. When the Volatility Index (or VIX) gets above 20, most traders take their foot off the gas due to heightened uncertainty in the markets. But to options traders that sell premium, higher volatility equals more opportunity. Let me explain why. Historically, implied volatility (IV) is always greater
3 Best Direction Neutral Options Trading Strategies Read More »
This is a Guest Post by Jake @TrendSpider. In this weekend’s analysis, we take a look at the continued volatility during the month of August. The markets were anything but stable with huge moves to the downside and upside but SPY managed to hold above it’s weekly EMA (50) which has been a crucial level in
Daily Versus Weekly Chart Setups on $SPY $QQQ $XBI Read More »
The Donchian channel is a technical indicator used by traders as a tool for trading price ranges. It was created by the father of trend following Richard Donchian. A Donchian Channel on a chart is created by using the highest high and the lowest low of the last periods of the timeframe on the chart. The space between the
How the Donchian Channel is a Support and Resistance Indicator Read More »
Technical analysis is a process for evaluating the historical price action on charts to identify the current trend or chart pattern to establish the possible probability of price action in the future. Technical analysts analyze past price action trading activity and the pattern of price changes in a market to project possible future price movements. Technical analysis
What is Technical Analysis? Read More »
Chart Facts: The ascending triangle is a bullish chart pattern that usually forms during an uptrend as a continuation pattern. Sometimes an ascending triangle pattern will form as a reversal pattern as a downtrend comes to an end, but they are usually continuation patterns in an uptrend. Regardless of their location during a trend ascending
What Causes an Ascending Triangle Pattern? Read More »
This is a Guest Post by Jake @TrendSpider. TrendSpider is happy to announce our first-ever “Chart Pattern Beauty Contest” which will first be judged by the fintwit community through the hashtag #TrendSpiderContest19. Then, the top 25 charts with the most engagement will be judged by Steve Burns, Brian Shannon, TraderStewie, and John Caynor. Learn more below and see
The Chart Pattern Beauty Contest Read More »
I like moving average signals for their power and simplicity in trend trading and here is why: Moving averages are a way to smooth price action and quantify a trend. Moving averages are tools that can work on any time frame. They can remove your predictions and opinions from your trading and replace them with
Why Moving Averages are the Best Trend Indicator Read More »
After reading hundreds of trading books, here are the ones I found to be the best for helping me make money in the stock market specifically. ‘How to Make Money in Stocks: A Winning System in Good Times and Bad, Fourth Edition’ This book shows the results of the extensive research that William O’Neil put
The Five Best Stock Trading Books Read More »
On trade entry the risk/reward ratio measures a trades potential for loss versus the magnitude of possible profits. In backtesting the average of all the losses in a system compared to all the average gains gives you the system’s risk/reward ratio based on historical price action. Looking at your stop loss versus your profit
What is a Risk Reward Ratio? Read More »
This is a Guest Post by Troy Bombardia of BullMarkets.co. Market outlook: is this a V-shaped recovery? The stock market bounced this week after it tanked last week on trade war news. Is the stock market making a V-shaped recovery? Probably not. Technicals (short term, next 1-3 months): mixed. If I had to assign a probability to a
The Odds that the Stock Market Will Make a V-shaped Recovery Read More »
This is a Guest Post by Jake @TrendSpider. In this weekend’s analysis, we take a look at the broad market ETF daily Raindrop Charts (TM) and weekly hollow candles into mid-August. The markets were everything BUT stable with huge moves both to the downside and upside in all major broad market ETFs. To learn more about
The Key Trend Lines on the Charts: $SPY $QQQ $BTC Read More »
I first read the original version of this book over fourteen years ago, and it was the book that finally cemented for me the overall structure I needed to understand all the dynamics of profitable trading. I have read hundreds of trading books, and this one still stands head and shoulders above the rest. It
Trading for a Living Read More »
The fact that most traders don’t make money in the markets is no different a statistic than other fields. The majority of high school football players don’t go on to college scholarships and very few college football players get professional contracts to the NFL. Most players play for the passion and the dream. Traders have
How to be in the 10% of Profitable Traders Read More »
Contrarian: a person who opposes or rejects popular opinion, especially in stock exchange dealing. Being a contrarian trader is not as simple as going against the crowd on a trade. Doing the opposite of the popular opinion all the time will not win over time, instead it will likely put you on the wrong side
Three Contrarian Trading Set Ups Read More »
The Average Directional Index (ADX) is a technical indicator that uses the Minus Directional Indicator (-DI) and Plus Directional Indicator (+DI) to visually show a group of directional movement indicators that can be used as a trading system and was invented by Welles Wilder. Mr. Wilder created the ADX to focus on the daily prices
How Does the ADX Indicator Work? Read More »
Markets only trend a small amount of the time, they spend most of their time going sideways or become volatile and go no where. While catching a big trend can be profitable after a break out or break down of a range there are other ways to make money. Swing trading is a trading method that
Three Swing Trading Strategies Read More »
In trading defense is under rated and offense is over rated.Too many new traders want to make money so bad they don’t even consider the risk of loss when the market becomes very volatile and plunges. Here are ten ways to manage risk and limit your losses during market plunges. Your maximum position size on
10 Ways To Protect Yourself in Trading Read More »
This is a Guest Post by Troy Bombardia of BullMarkets.co. Last week we explained why the market’s short term outlook is bearish. The stock market is now making a pullback, and trade war news isn’t helping bulls. Over the past year, tariff-related news has not been good for stocks in the short term. Technicals (short term, next 1-3
The Probability that the Stock Market Selloff is Over Read More »
This is a Guest Post by Jake @TrendSpider. In this weekend’s analysis, we take a look at the broad market ETF daily Raindrop Charts (TM) and weekly hollow candles into the first full week of August and compare how the crypto weekly charts are looking. To learn more about Raindrop charts and the platform in general,
The Trendlines and Fibonacci Levels to Watch Next Week Read More »