Shane his trading journey in 2005, became a Netpicks customer in 2008 needing structure in his trading approach. His focus is on the technical side of trading filtering in a macro overview and credits a handful of traders that have heavily influenced his relaxed approach to trading. Shane started day trading Forex but has since transitioned to a swing/position focus in most markets including commodities and futures. This has allowed less time in front of the computer without an adverse affect on returns.
The momentum indicator (momentum oscillator indicator) is one of the trading indicators available to traders to gauge the momentum in the market. There are several momentum indicators that can be used for intra-day trading as well as other styles and they include: MACD indicator – moving average convergence divergence RSI... Read more… read more
The opening range breakout strategy (ORB) has been around for decades and is a trade taken above or below the opening range of a market. Some traders may use a predetermined price points, something Toby Crabel calls “the stretch” which is a calculation from previous trading days. Others will use... Read more… read more
The RSI (relative strength index) is a popular trading indicator by J. Welles Wilder. The RSI2 trading indicator is a change from the standard 14 period RSI to a 2 period that was brought to us by Larry Connors. The other difference is the change in oversold and overbought levels:... Read more… read more
Have you been consistent with risk, position sizing, and keeping your focus on the trading method you have tested and shown to have a positive expectation? There is a very good chance that you have not been consistent and when faced with losing trades, you’ve either switched trading methods repeatedly... Read more… read more
The stochastic momentum index (SMI) is like the stochastic oscillator on steroids and was brought to the trading world by William Blau. Instead of reading the closing price of the asset as the standard stochastic indicator, the SMI will calculate the closing price in relation to the average of the... Read more… read more
Donchian channels, brought to us by Richard Donchian (1905-1993), is a great trading indicator to highlight trends, ranges, and new X number of day breakouts. You can design many trading strategies around the Donchian channel and it was the primary indicator for the Turtle Traders. The channel works by highlighting... Read more… read more
One of the most popular chart patterns in technical analysis is the triangle pattern. The triangle pattern is considered a consolidation price pattern, generally a continuation pattern, where the range of price gets tighter. This getting tighter is an indication of lower volatility and there will eventually be a resolution from... Read more… read more
The three moving average crossover strategy is an approach to trading that uses 3 exponential moving averages of various lengths. All moving averages are lagging indicators however when used correctly, can help frame the market for a trader. You can see how MA’s can give you information about market states... Read more… read more
The CCI indicator, the commodity channel index, is a momentum based indicator that falls under the oscillator classification. The CCI oscillates between several levels including: +100 -100 0 +200 -200 These levels are often used as overbought and oversold levels. The +100 would be considered overbought as an example. A move... Read more… read more
The Awesome Oscillator is another technical indicator designed to measure market momentum on any time frame. The name “Awesome” may have had you thinking it did something really special when you add it to a trading strategy. No. But like any technical indicator, the Awesome Oscillator, when understood, could add... Read more… read more
The Butterfly pattern, discovered by Bryce Gilmore, is a reversal chart pattern that consists of four distinct swings in the market. The rules to identify the Butterfly trading pattern are strict and requires the use of certain Fibonacci ratios that were made public by Scott Carney. If you use ratios... Read more… read more
The Turtle Soup trading strategy is based on the breakout trading system of the Turtles. The difference is that we want the breakout to fail when using the Turtle Soup strategy. The story of the Turtle Traders is a popular one and shows that people who have no prior financial... Read more… read more
The average directional index, ADX for short, is a technical indicator that measures the strength of a trend. Given that most instruments spend more time in a consolidated environment, it is helpful to know if your market of choice has any life to it. There is nothing more frustrating that... Read more… read more
Some of the best chart patterns to trade, such as bull flags, are simple and that includes the “anti” pattern by Linda Raschke. The anti pattern takes into account both a pullback and a momentum move that setups up the pullback. As described in my article about trading pullbacks, we... Read more… read more
Bollinger Bands are a popular trading indicator that was introduced to the trading world by John Bollinger in 1983. The visual nature of the Bollinger Bands makes it simple for a trader to see if price has extended far from the average security price. This tells a trader if the... Read more… read more
The best way to answer the question “what are Renko charts”, is to describe them as fixed sized bricks that plot on your chart in relation to price movement. They are very different from the common bar chart, Japanese candlestick charts, or Heiken Ashi charts as Renko charts (Renko bricks)... Read more… read more
Trading is accessible to anybody with internet, money, and a computer any time during the day. That is one thing that lures people to trading for a living because your schedule can be what you choose. Once they have put together a trading plan and back-tested their trading strategy, they... Read more… read more
