Trend trading seems like it should be easy, but when you’re first learning about trends your trades will likely end up on the wrong side of a lot of them. This is usually a result of not fully understanding the nature of trends, and the common mistake of trading against the trend because you think […]
While no two days are exactly alike, and any given day can deviate from the tendency, if you are trading the US stock market indices you may notice certain times of the day where the markets goes quiet, reverses or gets more volatile. Here are some time-of-day tendencies in the US stock market. If there […]
This is the third in a series on how to use oscillators with technical analysis I have been writing. In previous posts I discussed what an oscillator is, two rules for trading with oscillators and how to use it to predict potential reversal. In this post I will go into more depth about convergences. To […]
An engulfing candlestick is a powerful trade signal when used in the right context. A deeper look at this type of candlestick pattern is covered in A Powerful Candlestick Price Pattern. Here we’ll build on the basic engulfing pattern and apply it to a very basic trend following strategy in the EURUSD. The pattern combined […]
This strategy works best on strong trends, but can also be used to find entries during weaker trends as well although strong trends are always the preferred environment to trade in. Used in conjunction with paying very close to the price action and strength, this strategy gets very advantageous prices and allows for large profit […]
Oscillators are among the most common and widely used technical indicators. That is because this type of analysis can be applied to any time frame, any asset class and even to other indicators. For the uninitiated, an oscillator is an indicator that displays beneath a chart and appears as a wavy line moving above and […]
For both individual trades, and trading in general, there is a strong inclination to over-estimate our own ability to make huge returns, as well as the market’s ability to produce those returns. New day traders especially like to wait for what looks like an ideal opportunity, and then expect big things from that trade. But […]
Moving averages are one of the most basic and least talked about technical indicators I know. It seems surprising, nearly every strategy article or analysis will include some mention of a moving average but few actually talk about them. Binary options traders should find them especially useful; moving averages can provide reliable directional entry signals […]
The best way to learn is through a mentor; someone who has been successful and is willing to personally teach you and keep you on track. Unfortunately, the people who want a mentor far outnumber the mentors out there accepting students. Finding someone to personally teach you trade is difficult. But if you already a […]
Trade long enough and you will start to notice some usually regular and potentially destructive habits in your trading. You may chase trades, entering at a later point than your strategy dictates because you fear missing a trade. You may have trouble holding through a few gyrations in the market because you are impatient in […]