It’s called Intermarket analysis, and it is the study of how various asset classes interact with one another. Excluding assets such as art or real-estate holdings, we have five major “financial market” assets classes: Cash and cash equivalents, such as T-Bills or CDs Fixed Income products such as bonds or Treasury notes Currencies such as […]
Interested in trading gold? Then you’ll probably want to know about this ETF that usually turns just ahead of gold prices. That means if you are thinking about going short in gold, you can wait for the ETF to turn lower, which means gold prices should follow shortly after. If you want to go long […]
Chaikin Money Flow was developed by Marc Chaikin and is a primary used a confirmation tool for trend trading in stocks. It combines both price action and volume into one indicator, as the founder believes that volume leads price. CMF moves above and below zero based on whether, on average, the stock is finishing in […]
Wayne Gretzky, the greatest NHL goal scorer of all time, said “A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be.” This applies to traders as well. Most traders are always late getting into trades, entering near the tail end of a move or […]
One of the best short trades in the world is the “dead cat bounce.” It is called so because even though the market may bounce after a devastating fall, it isn’t going to moving significantly higher anytime soon. The bounce is dead and those that go long expecting the price to rally further are also […]
When I started my trading career in 2005, I was hired by a firm to trade their capital. Needless to say they didn’t just give me a few million and let me trade my heart out. The opposite occurred. I was allowed to trade only the absolute smallest position possible. Since I was trading the […]
If you trade stocks or stock indices (or related products) here are two very simple indicators which will help you decide in which direction you should be trading. Open Price Indicator: Current price – Open price The Open Price Indicator (OPI) is a simple calculation that lets you know whether buyers or sellers are stronger […]
For the past decade, every day before I start trading I check the economic calender…except today. I predominantly trade forex so I check out the global economic calendar on DailyFX. Since I trade a wide array of pairs I need to know what major news releases are due out in all the major markets–AUD, CAD, […]
In this article we’ll look at uptrend reversals (into downtrends); this is a follow up article to Simple Trend Reversals Strategy – Downtrend to Uptrend, which looked at downtrend reversals. Trading in the middle of a trend is fine, but trading near a reversal provides a way to jump in on moves as momentum is […]
The RSI is a versatile indicator, and can be used to provide entry signals during a trend. To get the signals a moving average is applied to the RSI. This is easily done on free charting platforms provided by brands below. Just add the RSI to your chart, click on the dropdown menu next to […]