What are the most used moving averages on charts and in technical analysis? The popularity of specific moving averages on different time frames can give them meaning as more people are watching them for signals. They can be self fulfilling prophecies as buyers and sellers take action as price crosses the line. Overall, simple moving […]
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The Commitments of Traders or COT report is a weekly report created by the Commodity Futures Trading Commission (CFTC) quantifying holdings in the U.S. futures and options contracts by different market participants. It is put together by the CFTC from traders disclosures of market positions and covers the futures on grains, cattle, financials, metals, energy,
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Smart money flow index or smart money index (SMI) is a technical analysis indicator that attempts to show the current market sentiment of investors. The index was created and made popular by Don Hays, who was a money manager. The SMI indicator uses intraday price patterns to measure bullish or bearish sentiment. The SMI indicator
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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
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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
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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
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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
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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
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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%
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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.
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