Last updated on February 26th, 2020
Online trading tips for Forex, Futures, Options. Learn how to improve your trading business.
Is there any way to predict that the potential of a breakout can lead to a successful trading position? While nothing is guaranteed, can we see certain things in price that points to a higher probability that trading the breakout can lead to profit? Yes. All it takes is for… Read more
You plan your trades using a strategy that has an edge but you fail to execute on the hard right edge of the chart. Getting from a strategy looking good on paper to real-world trading performance is what it’s really all about. Paper profits in your back test mean nothing… Read more
What are support and resistance levels? “Support is a level or area on the chart under the market where buying interest is sufficiently strong to overcome selling pressure. As a result, a decline is halted and prices turn back again. . . . Resistance is the opposite of support” (Murphy… Read more
Tick charts are different than time based charts in that your tick chart, will only plot when N amount of transactions have taken place. For example, a hour candlestick will plot a new candlestick every 60 minutes regardless of the amount of transaction that have occurred. A tick chart, using… Read more
What As A Shooting Star Candlestick Pattern? The shooting star candlestick is a bearish reversal one candle pattern that is relevant during an up direction in price. You can find this pattern on every time frame (easier to see on a candlestick chart and not a bar chart) and the… Read more
Marc Chaikin believed that price will follow volume and he designed the Chaikin Money Flow (CMF) based on that premise. It is a volume weighted average of accumulation and distribution of price over a fixed period of time, usually 21 periods. The Chaikin Money Flow indicator flows across the zero… Read more
Last updated on June 23rd, 2020 Using the Chandelier Exit as a trailing stop in trading includes using volatility that is based on the Average True Range Indicator. The name “Chandelier” is no mistake as the indicator calculation “hangs” from the highs (or lows) of current price. Since the Chandelier… Read more
The presence of a Hammer candlestick pattern does not mean you should jump into a trade. Some traders will use the term “pin bar” but what we are talking about is still the Hammer candlestick. What matters, is context and we are going to discuss that after we learn what… Read more
The most common definition of a gap is having a price difference between the closing price on one day, and the opening of the next day. The key is the market has to have a time when the market physically opens and when markets close, as in the stock and… Read more
An options premium refers to the current price of the option that would need to be paid by the buyer to the seller. When looking at the prices quoted in your broker platform, you will notice they are quoted per share. Each contract however represents 100 shares of stock. For… Read more
Last updated on July 4th, 2020 Trading with the trend is a simple concept where you only take trades in the direction of the price trend direction on your time frame. If the trend goes up, you would only consider long trades. A market direction that is trending down, you’d… Read more
Last updated on June 25th, 2020 The Klinger Volume Oscillator [KVO] is a trading indicator that uses both price and volume to highlight potential longer term trend turning points in the markets. You should know that many people are referring to this oscillator as a leading indicator. It is not…. Read more
Last updated on May 29th, 2020 Moving averages come in different types and they lag price. The simple moving average weighs each price point equally so it lags the most. Different twists such as the EMA and WMA evolved which emphasized price differently. The Hull Moving Average indicator was developed… Read more
Last updated on June 3rd, 2020 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… Read more
If you trade options for any length of time you will run into stocks and ETF’s paying dividends. It’s important to know when these dividends will require you to adjust or close a trade. What is a dividend? “A dividend is the distribution of a portion of the company’s earnings,… Read more
Last updated on June 18th, 2020 We have all heard of the old adage….”sell at resistance and buy at support” which is another way of saying to trade market structure. Obviously it is contextual because if price is charging towards a resistance level are you really going to just going… Read more
Last updated on June 3rd, 2020 Day trading has the potential to keep you glued to the screen the entire day as you punch in and out of trades. It can actually be addicting as you watch the increase in your trading account – perhaps not so addicting when the… Read more
Last updated on July 3rd, 2020 There’s learning how to trade… …there’s learning a trading strategy …there’s learning how to trade with that strategy …and then there’s learning how to be a ‘winning trader. Each step along the way is necessary to finally put it all together for consistent success…. Read more
Last updated on April 26th, 2020 I’ve lost count the amount of times “having a trading plan” has either been written about in this trading tips blog, or mentioned in a trading article. The reason you are inundated with “have a trading plan” by us is because it is something… Read more
Last updated on July 3rd, 2020 We are all going to have losing trades. The only way to avoid a losing trade is to not trade. Since you intend to make trading a career, not trading is not an option and a question that’s come up in our trade room… Read more
