Trend Following

Trend Following

Best Trading Books on Trend Following

“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 […]

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trend following indicators

What is the Best Indicator for Trend Direction?

Moving averages are the best indicators for the direction of a trend because of their power and simplicity to smooth out price direction in trend trading. They create lines on your charts to filter out the daily trading ranges and show the true direction a market is going in for a specific time frame. When

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SSO 1

A Simple Trend Trading Strategy

“Trend  followers use reactive technical analysis. Instead of trying to predict a market direction, their strategy is to react to the market’s movements whenever they occur. This enables them to focus on the market’s actual moves and not get emotionally involved with trying to predict direction or duration.” -Michael Covel Trading a trend in price

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Long Term Trend Following Models That Are Turning Bearish

This is a Guest Post by Troy Bombardia of BullMarkets.co As the stock market rallies higher and approaches its 50% Fibonacci retracement resistance, we can see a clear divergence in the data: The economic data is mixed, with some long term macro models turning bearish. Breadth is long term bullish. Quantitative market patterns are medium

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Growth Stocks, Risk Points, Position Sizes

The RIGHT Way To Use The 200 Day Moving Average

  This is a Guest Post by AK of Fallible AK has been an analyst at long/short equity investment firms, global macro funds, and corporate economics departments. He co-founded Macro Ops and is the host of Fallible. Last week the Dow Jones Industrial Average closed below the 200 day moving average for the first time since 2016. And

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