This is a Guest Post by Jake @TrendSpider. In this blog post, make sure to check out the top 5 TrendSpider charts posted this week on social media as well as the weekend video going over the broad markets and case studies from last week! Tune for “Coffee and Charts” Saturday morning at 11:00 AM […]
Current Chart Patterns on SPY QQQ and IWM Read More »
A pivot point is a specific price level calculated and then used as a technical analysis indicator and trend filter in a chart’s time frame. A charts pivot point level is the average of the high prices, low prices, and closing prices from the last trading day. Price trading above a pivot point signals a
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Charts are visual representations of the prices where buyers and sellers agreed to trade over at different periods of time in the past. In markets there is a buyer and seller for every trade execution, a stock quote is the price where the buyer and seller agreed and made a transaction. Buyers and sellers are
A reverse conversion option play is a type of arbitrage trade used to make money from selling the option premium of a put option that is priced too high but is structured in a way that profits regardless of the following price action of the underlying stock. This option play is created by opening three
Reverse Conversion Options Play Explained Read More »
A bearish credit spread refers to an option play constructed so the value of the spread position increases if the price of the underlying stock falls. A bearish credit spread is constructed with two call options. A bear call spread or credit call spread is an option play that is one kind of vertical spread. A bear call spread
Bear Call Spread Explained Read More »
In trading Delta hedging is a way to structure an option play to decrease or even eliminate the directional risk exposure of a stock holding or other option contracts. Stocks and options have directional exposure to a move in the market price, this is called Delta which is reflected by how much money a position
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A put option contract gives the buyer of the contract the right to sell the underlying asset at the strike price of the put on the day of expiration and assignment. When writing a put option you create a ‘sell to open’ order with your option broker. This is how you sell put options short
Put Options Explained Read More »
This is a guest post by Jake @TrendSpider. In this blog post, make sure to check out the top 5 TrendSpider charts posted this week on social media as well as the weekend video going over the broad markets and case studies from last week! Happy Memorial Day!
Current Chart Patterns for IWM SPY and QQQ Read More »
The profit factor for a trader or trading system is determined by taking the gross profit of winning trades and dividing it by the gross losses from the trades that lost money for a chosen sample size. This formula considers the cost of slippage, fees, and any commissions paid. The profit factor can be defined
What is a Profit Factor in Trading? Read More »
The VWAP (volume-weighted average price) is the ratio of the value of shares traded to total volume that is traded over a specific time period on a chart. It measures and quantifies the average price a stock is traded at for set period of time to create a technical indicator on a chart. VWAP is
