Here is an example of a simple moving average crossover strategy that beats buy and hold investing. This strategy combines two winning strategies, the golden cross 50/200 day and the stand alone price over the 200 day moving average system. These are both end of day signals based on the daily chart. Entry conditions: You go […]
A Moving Average Strategy that Beats Buy and Hold Read More »
The current chart is currently driven by headline risk but does have technical levels to watch. $SPY price remains over the 200 day moving average. This moving average is a long term bullish trend signal. The 10 day moving average crossed under the 50 day moving average this is a bearish signal in the short
Two Signals to Watch on the $SPY Chart: 8/25/19 Read More »
This is a Guest Post by Jake @TrendSpider. In this weekend’s analysis, we take a look at the broad market ETFs, SPY and QQQ, as well as Bitcoin. In this update, we take a look at how the longer term areas of support are still in play into next week. Make sure to set your alerts
The Key Trading Ranges on the $SPY and $QQQ Charts Read More »
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
What is the Best Indicator for Trend Direction? Read More »
In trading more action and time spent watching screens is not necessarily rewarded with more profits. The majority of the time trading every day and watching every tick in price is not rewarded by making more money the odds are greater that emotional errors of over activity will be made. Ed Seykota had some of the best annual
Trade Less and Make More Read More »
“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
A Simple Trend Trading Strategy Read More »
Chart Courtesy of StockCharts.com Breakouts can be signals based on price breaking and closing above a declining trend line, horizontal trend line, or a close above previous price range resistance. Once a breakout is entered a stop loss can be placed at the low of the bar of the day of the breakout. If it
10 Rules For A Breakout Trading Strategy Read More »
Market Wizard Richard Dennis known as the ‘Prince of the Pit’ turned $1,600 into $200 million in 10 years trend trading commodities. What happened when legendary trader Richard Dennis put a want ad in the paper to hire traders? What kind of results would ordinary people have if they were given a winning system and
Richard Dennis’ Rules For the Turtle Traders Read More »
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 »