The CCI (Commodity Channel Index) is a technical indicator that measures the current price level of a security relative to an average price level over a given period. It is a momentum oscillator that is used to identify extreme conditions,…
The DMI trading strategy is often known on most trading platforms by its third component, the average directional index (ADX). Not many know what the DMI is. Let’s take a look at it. The DMI (directional movement index) is a…
ETF trading strategies can be a very nice addition to your trading strategy arsenal. This guide breaks down key ETF tactics including trend following, mean reversion, and more, to give you a better understanding of how you can trade ETFs….
The futures market is exciting because of its good liquidity, and unlike equity day trading, there is no reasonable entry barrier, as you can start with as low as $500. But what exactly are futures? And can you find profitable…
Technical indicators offer powerful insights into what is happening in the market. While price is a factor in technical analysis, volume is as important as price as this tells traders the level of activity on a given security. The On-Balance…
It seems that traders are becoming increasingly interested in the classical methods of technical analysis, and trading channels have become popular again in the 21st century. Since Williams Volatility Channel is getting very popular among traders, you may wonder what…
In addition to “The Disciplined Trader,” Mark Douglas also authored another influential book titled “Trading in the Zone.” Published in 2001, this book further expanded on the principles of trading psychology and explored the importance of cultivating a mindset that…
For many, the approach is to buy low and sell high. But that is not the case with the 52-week high trading strategy – you do the opposite. What is the 52-week high trading strategy? The 52-week high strategy is…
Market indicators are an integral component of technical analysis. They help traders in making market decisions. Some indicators are designed to show the direction of a trend while others simply tell when a trend reversal is imminent. In this article,…
Stock market crash trading strategy. Volatility is a normal thing in the stock market — the prices of individual stocks and market indexes fluctuate all the time. But there are times when volatility is to the extreme, giving rise to…
Sweden has a vibrant stock market, with many interesting companies like AstraZeneca, Atlas Copco AB, and Ericsson. You can track the performance of the Swedish market with the OMX Stockholm 30 and OMX Stockholm PI indexes. OMX Stockholm PI is…
You must have heard the stock market adage: “Buy low and sell high.” It is possibly the most popular slang in stock trading. Buying at the all-time low may be a perfect way to implement the adage, but does it…
What is in Bill Williams Awesome indicator strategy? Williams stated in his book, “It is, without doubt, the best momentum indicator available in the stock and commodity markets. It is as simple as it is elegant.” That’s a bold statement….
There are certain trading strategies that you can trade based on price action alone. One of them is the HHLL trading strategy. You may be wondering what the HHLL trading strategy is. Here you go: The HHLL trading strategy is…
“If trading is like chess, then macro trading is like three-dimensional chess. It is just hard to find a great macro trader.” — Paul Tudor Jones. Many of the world’s biggest hedge fund managers and institutional traders focus on macro…
Considered a part of the technology sector, biotech stocks represent an important part of the Nasdaq market, and they tend to have big growth potential. But what are biotech stocks? Biotech is an industry group that includes companies that research…
Market crashes and recessions can be opportunities for long-term investors to buy assets at bargain prices. Market participants call the approach “buying the dip.” But what does it mean to buy the dip? To buy the dip means to purchase…
Globalization has made it possible for investors to tap into investment opportunities around the world, and as the second largest economy in the world, the Chinese stock market provides opportunities. But what is your China trading strategy? You can also…
Of course, companies release their earnings reports every quarter. If you are a short-term trader, you may have wondered whether to buy a stock before or after the release of its earnings report. What is the earnings report trading strategy?…
In this post, we take a look at the Elliot Wave trading strategy. At the end of the article, we present you with an Elliott Wave strategy. In the 1920s and 1930s, stock market analyst, Ralph Nelson Elliott, discovered that…
With e-minis, the Chicago Mercantile Exchange’s Globex electronic trading platform has made it possible for individuals with less capital to play the futures and commodity markets from around the world. It is one of the most efficient and cost-effective ways…
With investors becoming more concerned about their risk-adjusted returns amid bearish and flat market environments, interest in event-driven strategies has gained momentum. But what are event-driven trading strategies? An event-driven strategy is a trading approach that seeks to exploit pricing…
It’s a well-known fact that as options expiry day approaches, the biggest-cap stocks with actively traded options tend to witness huge trading volumes (and sometimes increased volatility). In fact, the most important day in stock trading is the expiry day….
The financial markets may seem to move randomly, but they actually move in repeating patterns and trends. One indicator traders use to take advantage of the patterns is the fractal indicator. What is it? Fractal Indicator Trading Strategy is the…
You must have heard about fundamental analysis whether you trade stocks, futures, or forex. Many market pros, such as portfolio managers, hedge fund investors, and investment bank professionals, use fundamental analysis. But what the fundamental analysis strategy actually entails? A…
There are many kinds of funds, ranging from illiquid private equity funds to highly liquid mutual funds and ETFs that are available to the public. Hedge funds occupy the sweet middle, but what are hedge fund trading strategies? Hedge fund…
The high-frequency trading strategy is a method of trading that uses powerful computer programs to conduct a large number of trades in fractions of a second. It is a type of algorithmic trading strategy that uses high speeds, high turnover…
In today’s computer-driven, fast-paced market, monitoring the limit order book may help you predict price movements. But what is the limit order book trading strategy? The limit order book trading strategy is based on the order flow. The limit order…
Different order types can result in vastly different outcomes, which is why it is important to understand the type of order you use. If you want your order to be filled at your specified price, go for a limit order….
Hedge funds employ many investing strategies, and the long-short equity strategy is one of them. But what does this long-short equity strategy mean? Long short equity strategy is a method of investing whereby a trader takes long positions in stocks…
Some people hold their trades for short periods, even as little as a day, while others hold theirs for quite a long time. While the former is known as short-term traders, the latter are called long-term traders. But what does…
There are different strategies for trading the market, such as trend following, price action, scalping, momentum, Martingale, mean-reversion, and so on. All are risky, but the Martingale trading strategy is known for its huge risks. What is this strategy and…
A risk-adjusted return is a measure of return that compares the potential profit from an investment to the degree of risk that must be accepted in order to achieve it. The reference point is usually a risk-free investment, such as…
Options trading is popular, and especially retail traders enter the options market at market bottoms and tops. We frequently receive questions about how to trade options, in both QQQ and SPY. Below is a short summary of the most frequently…
Meme stocks seem to be on everyone’s mind recently, with constant mentions in market summaries and analyses. These stocks gain traction on social media platforms, such as Reddit and Twitter (please follow us on Twitter), often sparking lively debate. While…
Understanding volume and price, and how they can influence the market, is very important in trading. Since volume is the measure of activities in the market, traders can use the information provided to increase the probability of their trades. A…
There are different ways to participate in the financial markets, and some of them have been structured to involve just predicting the market direction. One such easy but risky trading method is Nadex trading. Wondering what Nadex trading strategies are?…
For most retail traders, trading is mostly about technical analysis using trading indicators applied to a price to look at the current forces in the market. While technical indicators may play a significant role in trading, professional day traders don’t…
Chart patterns are one of the most powerful for analyzing price action. They help you to understand the rice structure and the state of the trend. Pennants are one of the common chart patterns traders look out for, but what…
Can price action trading strategies leverage market prices effectively to enhance your trading decisions and strategies? By analyzing pure price movements, these strategies help traders anticipate future market trends and pinpoint high-probability trades without relying on complex indicators. This article…
Most traders attach trendlines across one swing side of a trend to delineate its direction. But to appreciate the individual price swings within a trend, you may need to have a price channel to see the up-and-down swinging movement of…
Professional traders have their unique ways of trading, but one thing that is common among them is that they do not follow the crowd. They follow their specific trading plans and use their own strategies. But what are professional trading…
For every trade you take, you have to exit at some point. The difficult part of trading is deciding when and how to exit or sell a position; it is easier to know when to enter a trade than when…
A profitable trading strategy is one that consistently makes money over a reasonable period of time. It is not just enough for a strategy to make some winning trades over a short time because market conditions can change and it…
There are many chart patterns price action traders use to analyze and anticipate price movements. Being a new entrant in the chart pattern catalog, the Quasimodo chart pattern may not be one of the most popular, but it could be…
There are different ways to skin a cat, they say. This is true in trading as well. While some find their edge in the market with the help of trading indicators, others trade the price action, and the rabbit trail…
Burton Gordon Malkiel in his famous book — A Random Walk Down Wall Street — popularized the random walk model of the financial markets. According to him, the market moves randomly and its direction cannot be predicted with technical or…
If all chart patterns are as simple as the rectangle pattern, every technical trader would be a chartist of some sort. One of the most popular chart patterns every trader should know, the pattern is easy to spot. But what…
Most price charts are time-based in the sense that a price bar represents price movement over a specified period of time. However, there are other chart types that are not based on time but, rather, on a specified price movement…
Because of its potential for quick profits, the short-term trading strategy is the most popular trading method among retail traders. Unlike traditional long-term investing methods, this strategy offers an exciting opportunity to profit from relatively minor changes in market conditions….
A small account trading strategy refers to the trading methods and risk management approach a trader can apply to grow a relatively small account. Starting trading with a small account means having to use leverage and making fewer trades. Thus,…
One interesting thing about technical analysis is that there are many tools you can use to analyze the market. One of the most powerful and versatile but underutilized tools in trading is the trendline. You can use it to do…
Volatility and bear markets are related: volatility “always” picks up when the market goes down. Is this good or bad for a trader or investor? Should you buy or sell stocks in a volatile market? Let’s find out: Short-term traders…
With the world getting increasingly connected online and many regions opening up their financial markets to the global investing community, it is now easier to diversify your investment portfolio into other economies. And the European market is an easy choice…
While trading price bar patterns may not be a robust trading approach, within the right chart context, it is possible to create robust signals. This is true for the outside day price pattern, which is quite popular among price action…
Among global government bond markets, the US government bond market provides the most liquidity, security (in terms of creditworthiness), and diversity. Being an important benchmark against which other long-term securities are measured, the 30-year bond has long been a favorite…
Established in February 1966 and denoted as A$, AU$, or more commonly, AUD, the Australian dollar is the official currency of Australia and its external territories, such as Christmas Island and Norfolk Island. It is issued and regulated by the…
The global cattle market is worth hundreds of billions of dollars, as the world consumes over 60 million metric tons of beef annually. Feeder cattle (young cattle mature enough for fattening) contribute a good chunk of that market. Despite the…
Pork is the most widely consumed animal protein in the world, with more than 100 million hogs slaughtered every year. A major component of the multi-trillion-dollar livestock market, the global pork industry is very huge, and most of it is…
5-Year T-Note futures strategy is the methodology or technique you can use to profitably trade the T-Note futures market, and this often includes technical and fundamental analyses. 5-Year T-Note futures are financial derivative products that represent a contract to exchange…
The Euro is the European Union’s currency and is represented with the € symbol. Since the introduction of the currency in 1999, the Euro FX futures has grown to become one of the most actively traded contracts in FX futures,…
Launched by the Chicago Mercantile Exchange (CME) in 1981, the Eurodollar futures was the first cash-settled futures contract and has been one of the most liquid futures contracts in the world. It has a staggering underlying market and a large…
Launched on 24 November 1969, the Hang Seng Index (HSI) measures the performance of the Hong Kong Stock Market’s 50 largest companies. Representing about 50% of the value of the stocks quoted on the Hog Kong Stock Exchange, Hang Seng…
The Yen is Japan’s official currency, denoted by the symbol, ¥, or the letters, JP or JPY. Regarded as a mainstay of global finance, the Japanese yen futures is one of the most actively traded FX futures. In fact, the…
Nikkei 225 futures, which is based on the Nikkei 225 stock market average, provide investors around the globe with an efficient way to access the opportunities of the Japanese equity market, one of the world’s largest markets. Created in 1950,…
The micro E-mini Nasdaq 100 futures strategy is the method or technique that you can use to trade the micro E-mini Nasdaq 100 futures profitably. Micro E-mini Nasdaq 100 futures are a type of electronically traded Nasdaq 100 futures that…
The advent of electronic trading and the high-frequency trading bot that follows it meant that the financial markets have become too efficient to successfully trade them with discretionary methods. This is why algorithmic trading has been on the rise among…
While there are many different indicators used in technical analysis, only a few are deeply rooted in how price action is formed and how institutions, smart money, algorithms, and retail traders combined can give us a hint of how the…
The largest economy in Latin America, Brazil has a well-established financial market and is the top investment destination in South America. The country has some of the biggest stock and commodity exchanges in the continent, providing opportunities for day trading…
Interest rate trading strategy involves buying or selling financial assets, such as bonds, stocks, and Forex to profit from changes in the benchmark interest rate. The goal of the strategy is to make money from fluctuations in these instruments’ values…
TradingView is a financial platform that offers tools for traders to visualize market data, create and share technical analysis, and develop and backtest trading strategies. The platform offers a variety of tools including charting, indicators, drawing tools, and alerts. It…
Out of the hundreds or thousands of technical indicators and oscillators that exist, the Klinger oscillator indicator is not one that comes to mind first. However, because it is not well known doesn’t mean it doesn’t work or that we…
Many patterns or models try to predict what the performance of the market may be in any given year. For example, the January effect, presidential cycles, valuation models, etc. Today we will look at one that many traders do not…
Let’s test the strategy Turnaround Tuesday but only in bear markets. Does that work? Turnaround Tuesday is one trading idea that has worked very well for many decades. We have covered it on our website multiple times. We are now…
Here is a trading strategy that are rotating between S&P500 and Treasuries. There exist many strategies that rotate between S&P 500 and Treasuries. Over the weekend we had a look at the white paper of Meb Fabe called A Quantitative…
We already discussed how to create and backtest a trading strategy using Chat GPT in a prior article and video, but today we are going to skip the idea generation stage and jump right into the trading rules and backtest:…
As fancy as the name might sound, the Three Stars in the South candlestick pattern is just an extremely rare bullish reversal candlestick pattern. In this post, we will discuss the pattern in detail. Here are some of the things…
A bullish three white soldiers is a bullish reversal pattern that occurs at the end of a downtrend, and signals a positive trend reversal. The pattern consists of three consecutive tall bullish candles, contrasting with the ‘Three Black Crows’ which…
Candlestick patterns have become popular tools for many traders, in their search for edges in the markets. One such candlestick pattern is the tweezer bottom. A tweezer bottom is a candlestick pattern that forms as a bearish trend is turning…
Candlestick patterns are some of the most popular concepts in technical analysis, and come in many forms and shapes. One candlestick pattern is the tweezer top. The tweezer top is a two candle bearish reversal pattern that occurs after an…
Candlestick Patterns have become incredibly popular among new and experienced traders. With their eye-catching wicks and colorful bodies, they make reading the market a pleasure. In addition, they also form candlestick patterns, like the Upside Tasuki Gap. The Upside Tasuki…
If you’re on the lookout for indications of a continuing bullish trend in trading charts, keep an eye out for the rising window candlestick pattern. This is characterized by a gap appearing between two consecutive candlesticks, signaling that the existing…
Seeking to interpret the messaging of market charts? The presence of a bullish marubozu candlestick often communicates strong buyer confidence. This particular Candlestick pattern, characterized by its lengthy body without shadows, is an indicator that buyers are firmly in control—prompting…
What does gold trading mean and what about Gold Trading Strategies? Gold, along with crude oil, is one of the world’s most widely traded raw materials. It is undoubtedly the most popular precious metal, both financially and culturally. Gold Trading…
Weather trading strategies have gained increasing attention in the financial markets due to their unique characteristics and potential for profitability. In this article, we will delve into the world of weather-based trading and explore the various strategies and techniques that…
Here are 20 soft commodities trading strategies you are going to learn. For those trading soft commodities like sugar, cotton, and coffee, a strategic edge is key. This article explores effective soft commodities trading strategies, offering insight into market analysis,…
Ever wondered how a beginner trader evolves into a market maestro? ‘Trading stories’ are not just about profits; they illuminate the strategic decisions and mental grit required for success. Dive into this collection that strips back the curtain on the…
Navigating market volatility and minimizing risks requires practical strategies. This guide directly responds to your search for ‘market volatility guide strategies to minimize risks’ by presenting sound methods to stabilize your investment portfolio. From the essential principles of diversification to…
Are market swings impacting your trading decisions? Psychological resilience in trading maintaining emotional stability is the cornerstone of enduring success in the markets. This article is tailored to provide you with robust strategies for emotional grounding and resilience in the…
A Fair Value Gap (FVG) trading strategy involves identifying and capitalizing on price jumps caused by imbalanced buying and selling pressures in the market. These gaps, also known as Price Value Gaps or Singles, occur when the supply of buyers…
What are leading and lagging indicators, and how do they shape business and trading decisions? Leading indicators signal future trends and changes, allowing for proactive responses. Lagging indicators retrospectively measure effectiveness and success. This guide details their characteristics, functions, and…
What is systematic trading and how does it streamline the decision-making process in finance? With its roots in algorithm-based trading rules, systematic trading minimizes emotional bias, ensuring a level of consistency often sought but seldom achieved in market trading. This…
Are you considering a shift to mechanical trading to remove emotional biases from your trading decisions? Mechanical trading systems are structured to help traders execute trades based on precise, pre-set rules rather than gut feeling or speculation. These systems aim…
Curious about discretionary trading? This method depends on individual decision-making capabilities, setting it apart from algorithm-driven systematic trading. Our guide will unpack the skills, risk management strategies, and market analyses that depends on successful discretionary trading, offering you a clear…
A trading system is your blueprint for market success; it’s a rule-based approach to automate your trading decisions and potentially enhance your market performance. This article explains how trading systems work, guides you in creating one tailored to your needs…
Are you contemplating the merits of discretionary vs systematic trading and trying to discern which aligns with your investment philosophy? The heart of the debate lies in moving beyond gut-driven calls of a discretionary trader versus the rule-based discipline of…
Program trading is a pivotal force in stock markets, using algorithms to execute trades based on predefined criteria. This article explores the core of program trading: its automated strategies, crucial benefits, and potential risks. Whether it controls liquidity or influences…
Data-driven trading strategies harness numbers to predict market trends with precision. This article unpacks these strategies, showing you how to analyze and use data to make informed decisions that could help to maximize profits and minimize risks. Explore how to…
Is day trading haram? The answer varies among Islamic scholars. This article examines the key factors and guidance on day trading within Islam. Key Takeaways Introduction At its core, day trading involves buying and selling securities within a single trading…
Navigating the markets is treacherous when bear traps lurk, as they can snare traders with an unexpected uptrend in a declining market. Our focus here is bear trap trading – what it is, how to spot it, and ways to…
