Some instruments move together, while others move in opposite directions and some share no relationship whatsoever. Such relationships can play a key role in determining which trades you make and why. While you may not be aware of it, when you get a trade signal in one instrument, signals are also likely triggering in other […]
A trend is underway and you’re looking for entry point. All of a sudden the trend pauses or pulls back, leaving you with the question: “Is this thing going to keep trending eventually, or is this a full reversal?” While there is no way to know for certain, being aware of continuation patterns can help. […]
Candlestick charts are a type of visual chart which many traders prefer over more traditional bar or OLHC (open, low, high, close) charts. While there is nothing magical about candlesticks themselves–they still represent the price movement of an asset–the way the price information is presented allows you to spot potential reversal and continuation patterns which […]
Once a trend has run its course, it often displays certain price movements or patterns which signal a reverse is potentially underway. These chart patterns can be used to get you into the emerging trend early, or get you out of (or avoid) trades which could potentially start to lose you money. Chart patterns are […]
You have what you believe is a great trade setting up, and you’re ready to take a position, but how much do you “bet?” Position size is something many traders don’t think about, they just take a position they think they can afford and hit the buy button. Unfortunately, determining position is a bit more […]
Start a business, you need a plan. With no direction or planning for how you’ll make a profit, your business likely doomed. Trading is no different, if you want to succeed, you’ll need to think of trading like you would a business. After all, through your research, skills and ultimately your money you’re making an […]
Trendlines are an analysis method that every beginning trader should take the time to learn about and understand. Using price history to analyze the market is a powerful way to trade, as price is the only true indicator of market direction, upon which profits are made or losses realized. Trendlines are one tool used to […]
An uptrend can simply be defined as a series of higher-highs in price, coupled with higher-lows. In other words, the overall price direction is higher, even though the price will experience corrections along the way. A downtrend is a series of lower-high and lower-low price swings. These may seem like elementary principles, but in their […]
Watch a trend develop and you will see pullbacks along the way—brief counter-trend moves that quickly disappear as the trend re-emerges. Entering on these pullbacks can be lucrative, but most traders go about it the wrong way. They either enter too early when the pullback is still occurring–and then have to hope the pullback soon […]
If you’re looking to improve your trading, there is one area–above all–that you’ll need to address; it’s the mental-game. If you’ve said to yourself “I’m not going to each pizza for a whole month,” or “I’m going to work out three times a week at the gym” and then couldn’t follow through, your mental-game needs […]