Jim Simons was a hedge fund manager and a mathematician. He was a quantitative investor and the founder of the hedge fund Renaissance Technologies. His hedge fund specialized in systematic trading using quantitative models derived from mathematical and statistical analyses. Mr. Simons primary models were on pattern recognition. He contributed to the development of string […]
Jim Simons Top Trading Quotes Read More »
Linda Bradford Raschke was one of the top traders featured in Jack Schwager’s book ‘The New Market Wizards’ her trading results were outstanding both as a floor trader and when she moved to trading at home from her own office. She had consistent success in her own personal trading and even made seven figure profits
Review of Linda Raschke’s New Book: Trading Sardines Read More »
Trend following is the process of trading in the direction of the markets price action and staying with the trend until it ends. A trend follower must have a quantified winning process for entering when there is a signal and then either exiting for a small loss when a trend fails to be established or
Top Five Trend Following Indicators To Use Read More »
The RSI (Relative Strength Indicator) is a is a momentum oscillator that measures the speed and change of price movements. The RSI moves in a bounded range between zero and 100. I use the RSI on the (14) setting on the daily chart. The RSI is generally overbought when its reading is above 70 and oversold
How I Use the RSI Indicator 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. We are also excited to have guest, John AKA “TrueBubbleHead” on Twitter who is the founder of positive-trends.com, on our webinar on Sunday to discuss how he uses Raindrop(TM) charts in
The Key Trendlines on the Charts: $SPY $QQQ $BTCUSD Read More »
Chart courtesy of StockCharts.com The Double Top Chart pattern is a reversal pattern that is bearish. This pattern is created when a key price resistance level on a chart is tested twice with a pullback between the two high prices at resistance price level tests. Chart Facts: A double top chart pattern happens at the end
How To Trade The Double Top Pattern Read More »
The Head and Shoulders Chart Pattern is one of the most popular and bearish patterns in technical analysis. It defines three attempts to make highs and then trend but fail, it precedes many major corrections and bear markets. Chart Facts: The Head and Shoulders chart pattern is a reversal pattern of an uptrend. The pattern
Identifying The Head and Shoulders Pattern Read More »
While the Head and Shoulders Chart Pattern is one of the most popular in Technical Analysis few people have heard of the Inverted Head and Shoulders Pattern. It is basically the opposite of the classic Head and Shoulders, while the regular pattern is ominous and bearish the inverted version of the pattern is very bullish
Why the Inverted Head and Shoulders Chart Pattern Works Read More »
A bullish divergence is defined on a chart when prices make new lower lows but a technical indicator that is an oscillator doesn’t make a new low at the same time. This is a signal that bearish sentiment is losing momentum with the high probability that buyers are stepping in and the market may be near a
What is A Bullish Divergence? Read More »
“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
10 Price Action Strategy Trading Tips Read More »
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
How to Trade With the MACD Indicator Read More »
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 »