One of Warren Buffett’s investment advice is, “Be fearful when others are greedy and greedy when others are fearful!” That basically explains the contrarian trading strategy. The contrarian trading strategy is one that goes against the prevailing sentiment in the…
Gap fill trading strategies are popular among traders, especially when it comes to playing the opening gap of the S&P 500. But what exactly is an opening gap? This article explores the basics of gap trading strategies, focusing on understanding…
Commodities, being closely tied to weather patterns and economic activity, exhibit high cyclical characteristics. Similarly, stocks also display cyclical tendencies. Given this, is there an opportunity to capitalize on their optimal performance? The commodities to equity ratio tries to do…
The utility sector has taken a major hit over the last couple of weeks. Below is XLU, the ETF that tracks the sector: But as you can see, it’s not the first time it has “collapsed”, but it has caught…
The 9/30 trading strategy is a trend-following strategy that uses two moving averages — a 9-period EMA (exponential moving average) and a 30-period WMA (weighted moving average) — to spot trading opportunities when there is a pullback. The 9-period EMA…
Wheel Trading Strategy The wheel trading strategy is a popular options trading strategy that involves generating income from options by buying and selling puts and covered calls. It is a systematic approach to trading options, allowing investors to potentially generate…
Taking advantage of the popularity of Tradingview and its powerful tools for technical analysis, we will explore Bollinger Bands and their potential for creating a trading strategy. Stay with us until the end to see how we use the tools…
Gold is one of the most famous commodities in the world and is a great diversifier for those trading mainly stocks. However, its price has gone nowhere in the past decade, so we decided to test some strategies and try…
New traders often think that there is that one indicator that would help them make big profits from the market all the time. Unfortunately, there is none, which is why the triple screen strategy was invented to exploit the strong…
Dogs Of The Dow (DOD) Some investment strategies allow you to enjoy maximum dividend income, and Dogs of the Dow is one of such. But what does it really mean and how has it performed lately? Dogs of the Dow…
The PENTAD Timing Model By Nelson Freeburg is an active, complicated strategy that uses four stock indices and one advance/decline line for producing buy/sell signals. This timing model is designed for the US stock market. Using this timing model, you…
Triangular moving average strategy backtest Moving averages are the most common and useful technical indicators in forex trading, owing to their effect in smoothening out price movements and showing the actual direction of the trend. There are various types of…
Pairs Trading Strategy involves being neutral to the direction of the market. This article looks at what pairs trading is, how it works, and its advantages and disadvantages (pros and cons). The main benefit of pairs trading is market neutrality….
The 5-Day Low Overnight Trading Strategy focuses on trading the S&P 500 when it opens at a 5-day low but closes higher than its opening price. This strategy involves entering trades at the close and exiting when the market opens…
The Weighted Moving Average (WMA) is a valuable technical indicator employed by traders to assess the direction of trade and assist in making informed decisions on when to buy or sell. This article looks at the math, theory, and basics…
Introduction to the Z-Score Trading Strategy: The Z-Score is a statistical measure used in finance to assess a company’s financial health and its likelihood of bankruptcy. The Z-Score Trading Strategy employs this metric to make improved investment decisions. The Z-Score…
High Probability ETF Trading, published in 2009 and written by Larry Connors and Cesar Alvarez, contains some interesting strategies. They are all mean revertive and tested on the most popular ETFs at the time of writing, which was the end…
IWM is the ticker symbol for iShares Russell 2000 ETF, which is one of the main ETFs that track the Russell 2000 index. The ETF provides a way to invest in the index and gain exposure to small-cap U.S. stocks….
Analyzing price movements to find trading opportunities can be a daunting task, even for an experienced trader, but one tool that can help is the Time Segmented Volume (TSV). What do you know about this indicator? The Time Segmented Volume…
Being a rare candlestick pattern that doesn’t form that often, the bullish mat hold might have escaped the attention of most traders. A bullish mat hold is a five candle candlestick pattern that forms in an ongoing uptrend, and signals…
If you’re spotting a bearish tri star doji on your chart, you might be witnessing a critical shift in market sentiment. This concise guide will unravel what this rare pattern suggests about the balance of power between bulls and bears,…
The end of month/early month strategy is well-documented in the stock market. This is called the turn-of-the-month strategy. This effect exists in most “risky” assets. Also in crypto. Let’s backtest the following trading rules: Trading Rules This has returned the…
With so many factors affecting the profitability of a trading strategy, using the right stop or exit method is necessary if you want to stand a chance of making money in the market. But must it be a stop-loss order?…
By understanding the various candlestick patterns and their significance, traders can gain valuable insights into market sentiment and potential price trends. In this comprehensive Candlestick Pattern Glossary, we will explore 100 proprietary trading terms, providing you with a valuable resource…
Instrument/asset S&P 500 (SPY) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): Five days in a row with lower lows and highs. Results Since…
When a Bullish In Neck Line surfaces on your chart, it’s a critical moment to decide for trading strategy. Is the current uptrend set to continue, or is the Candlestick pattern a sign of an impending reversal? This article demystifies…
Candlestick patterns have become very popular since they first were introduced to the western world in the late ’80s. And one candlestick pattern that’s quite popular among traders today, is the bullish kicker pattern. A bullish kicker is a candlestick…
Candlestick Patterns have become the preferred technical analysis tool of many investors and traders, partly due to their easy-to-read and colorful markings, and the fact that they form many different types of chart patterns. One such pattern, which is the…
Candlestick patterns are some of the most popular methods to analyze price movements in the markets. One popular candlestick pattern is the bullish meeting lines. Bullish meeting lines are a two-candle bullish reversal pattern that occurs in a downtrend and…
Imagine you’re a trader, sitting at your desk, staring at your computer screen, waiting for the perfect opportunity to strike. You’ve been watching the market closely, analyzing every tick, every trend, every pattern. Suddenly, you notice something unusual. The stock…
Ready to decode the market with single candlestick patterns? These indicators can alert you to potential price movements with just a glance. In this article, we dissect each pattern’s significance and show you how to apply single candlesticks for strategic…
Candlestick patterns have become some of the most used analysis tools among new traders. With their colorful bodies and long wicks, they’re easy to read and are believed to provide clues about where the market is headed for next. One…
Instrument/asset Gold price (GLD) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): Buy at the close of third last trading day of the year;…
Why is drawdown in trading important? Why should you spend time thinking about what is a good max drawdown percentage? How you prepare and deal with drawdowns in trading is important. Why is it important? Because a drawdown makes you…
Grasping the intricacies of the bearish thrusting pattern is essential for traders seeking to predict market trends and execute strategic trades. Manifested within a downtrend, this pattern suggests persistent selling momentum, offering a critical cue for individuals aiming to short…
A bullish harami cross often intrigues traders as it suggests a potential shift from bearish to bullish momentum. This article swiftly cuts to the chase on how to identify the Candlestick pattern, its implications for market sentiment, and how to…
Instrument/asset S&P 500 (SPY) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): The IBS is above 0.85; and The close is below the 200-day…
Double candlestick patterns are common, and this article explains what they are and which candlesticks can be called double candlestick patterns. They are used to predict continuation or reversal patterns, and we show you which ones are good and how…
When you see a bearish spinning top on your chart, it signals potential market indecision. This simple guide breaks down the essentials: what a bearish spinning top looks like, its implications for traders, and actionable insights for trading this pattern…
In the world of finance, certain platforms play vital roles in shaping the global economy. Among these, the Eurex Exchange stands out as a key player.Eurex Exchange is the world’s largest futures and options market for European-based derivatives. It was…
Ever spotted a bearish stick sandwich on your chart and wondered what it could mean for your trades? This candlestick pattern signals a potential bearish reversal, a crucial insight for any trader. This guide will show you how to recognize…
Candlestick patterns have become one of the most popular analysis methods available today, and there are quite a variety of patterns available, each holding a different meaning. In this guide, we will look closer at the three black crows pattern….
Exploring the bearish three line strike can offer traders critical insights into potential market reversals. Our guide demystifies this pattern, detailing how to spot and interpret it and integrate it into your trading arsenal. Key Takeaways What is a Bearish…
Instrument/asset S&P 500 (SPY) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): The month is December; and The calendar day is more than; and…
Instrument/asset S&P 500 (SPY) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): Today’s close is a 5-day low of the low. Results Trading performance…
Options trading adds an exciting layer of dynamism to your trading strategy. To succeed as an option trader you need to make sure you know the basic options trading statistics. Options trading reserves the right to sell or buy a…
Yes, the SPY (SPDR S&P 500 ETF) tends to closely follow the movements of the ES (E-mini S&P 500 futures contract). The ES futures contract is based on the S&P 500 index and is a popular instrument for trading the…
Do you want to make more informed trades using triple candlestick patterns? These patterns can provide significant cues about future price action. Our article offers a pragmatic guide through identifying and interpreting triple candlestick patterns like the Three White Soldiers,…
Candlesticks are perhaps the most popular charting method out there, and especially get the attention of new traders and investors. Their colorful bodies make it easy to gauge price movements, and combined they form easily recognizable patterns. One popular candlestick…
Unlike investing, which focuses on long-term appreciation and wealth accumulation, trading is centered around capitalizing on short-term market fluctuations or exploiting price differentials and inefficiencies. To assess the effectiveness and performance of trading strategies, traders often rely on benchmarks that…
When you observe ‘bearish side by side’ on a chart, it’s a strong hint that a downtrend might continue, at least that’s the theory. Simple yet revealing, this three-candle pattern is what savvy traders look for to confirm their bearish…
Among the various candlestick patterns used in technical analysis, those that involve three or more candlesticks are usually held in high regard by traders, and the Bullish Hikkake pattern is one of them. The bullish Hikkake is used to recognize…
Instrument/asset S&P 500 (SPY) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): Results Trading performance if we exit after N-days since SPY’s inception in…
When it comes to navigating the complexities of financial markets, one timeless truth stands out: “Statistics don’t care about opinions.” In the dynamic world of trading, opinions can be as diverse as the market itself. Every investor has a unique…
Candlestick Patterns have gained a lot of popularity among new traders and form a lot of patterns that are believed to predict the future moves of the market. One such pattern is the bullish homing pigeon. The bullish homing pigeon…
Instrument/asset S&P 500 (SPY) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): The Monday after Thanksgiving is a down day. Results Trading performance if…
The ‘Bullish Abandoned Baby’ pattern is a potential trend reversal pattern. In this article, you will learn about its characteristics, strategic trading tips, and the overall significance of this pattern in predicting bullish market shifts. We’ll also address its rarity…
Can you buy stocks on the weekend? Trading stocks over the weekend can be a good opportunity for professional as well as part-time traders to brush up their skills while maximizing their returns. Yes, traders can trade stocks over the…
Bitcoin is known for its remarkable price fluctuations and volatility. This presents significant trading opportunities for traders, who often turn to technical analysis tools like Bollinger Bands to navigate this turbulent landscape. Can we make a Bitcoin Bollinger Bands trading…
Instrument/asset S&P 500 (SPY) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): TweezerTop (candlestick). Results Trading performance if exit after N-days (100 000 and…
Instrument/asset S&P 500 (SPY) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): RSI(2) is above 70; and Today is Monday; and the close is…
Instrument/asset Gold Miners (GDX) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): But at the close of OPEX day (option expirations) in December. Results…
IBIT Trading Strategy IBIT is an acronym for iShares Bitcoin Trust, a spot bitcoin exchange-traded fund (ETF) that was launched on January 11, 2024, by BlackRock, the world’s largest asset manager. IBIT seeks to track the price of Bitcoin by…
What Is a Credit Spread in Options Trading? A credit spread is a widely used option trading strategy that involves simultaneously buying and selling options on the same underlying asset. This is how it works: The trader sells a higher-premium…
Candlestick Patterns have become some of the most popular tools when it comes to analyzing the movements of a market. One candlestick pattern is the bullish separating lines. Bullish separating lines is a two candle bullish continuation candlestick pattern that…
Instrument/asset S&P 500 (SPY) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): RSI(2) is above 95; and IBS is above 0.9; and The close…
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Swiss Franc futures are standardized contracts traded on futures exchanges, allowing investors to speculate on or hedge against changes in the Swiss Franc’s value relative to other currencies, typically the US dollar. They’re used by traders to manage currency risk…
The candlestick chart is very popular among traders — not just because it is easy to visualize but also because the candlesticks can form shapes and patterns that traders can use to predict how the price might move in the…
Can trading as a side hustle be a viable option without derailing your day job? Absolutely. This compact guide offers straight-to-the-point strategies and essential tips for those looking to trade in tandem with their 9-to-5. Get insights on skill building,…
Let’s see how to build a trading strategy based on the popular RSI indicator using TradingView (step by step) in the crypto market, from building the layout to implementing its native Pine Script language. Our RSI-based trading strategy will seek…
The world of cryptocurrencies is drawing more and more traders, and as of today, crypto traders have about 25,000 different symbols to choose from. That is a lot! But which trading strategy is best for crypto, Bitcoin or altcoin? Bitcoin is…
The One White Soldier is a bullish reversal candlestick pattern that typically occurs at the end of a downtrend. It consists of a single white candle that opens below the closing price of the previous day and closes above the…
The bearish kicker candlestick pattern is presumably one of the most effective bearish reversal patterns that can explicitly define the potential bearish momentum and flow of price action. It is characterized by a large, downward-moving candle that appears after an…
Candlestick charts are instrumental in identifying potential changes in short-term trends, which can be signals for potential trading opportunities. Among the various candlestick patterns, the matching high pattern is very unique. Want to learn about the matching high candlestick pattern?…
Sometimes, the bull and bears fight each other to a standstill, giving rise to a Neutral Doji candlestick pattern. As with many other candlestick patterns, this pattern tells a story about the market and how the price might move in…
For a long time, there has been debate about whether a classic investment portfolio should add cryptocurrencies. The debate gained traction when famous institutional investors secured a stake of their capital in Bitcoin. Should Bitcoin be a part of your…
To succeed at trading, you must ensure you have a positive statistical expectancy and the ability to follow the strategy. What is statistical expectancy? Simply put, it’s the probability that your trading strategy will produce a profit over a large…
ChatGPT has been on everyone’s mind lately. People are discussing how it can improve productivity or help you solve programming bugs. But can ChatGPT be used for backtesting? ChatGPT can be helpful in trading as a tool for analyzing market…
The Bearish Harami is a candlestick pattern comprising of a small bearish candlestick forming within the body of a previous, sizeable bullish candlestick. Many traders rely on this pattern to predict potential reversals to the downtrend. The Bearish Harami candlestick…
The Bearish On Neck Line is a two-candlestick continuation pattern that occurs during a downtrend and can help traders recognize potential selling opportunities in the market. In this article, we will examine the features and potential significance if the Bearish…
The Inverted Hammer candlestick pattern, also known as the inverted hammer candlestick formation, is a bullish reversal that forms at the bottom of downtrends. As the name implies, it has the appearance of an inverted hammer — a small body…
As any crypto trader knows, cryptocurrency markets are famously volatile. Prices can swing dramatically, with huge runs and sudden crashes that can make or break your portfolio. Just look at what happened in November 2022—one major cryptocurrency saw price swings…
In markets with high volatility, the price may spike widely in a trading session and end up closing where it opened, giving rise to uncommon candlestick patterns, such as the Long-Legged Doji. As with many other candlestick patterns, this pattern…
Navigating the intricacies of financial markets hinges on understanding market microstructure. This foundational knowledge can mean the difference between successful trading and missed opportunities. With a focus on the key aspects of liquidity, price discovery, and transaction costs, our guide…
The Japanese candlestick chart is very popular among traders because it is easy to visualize and see shapes and patterns that can give a clue about how the price might move in the future. One rare pattern that tells a…
Candlestick charts are often used to analyze price action because of the patterns that signal potential trend reversals and provide some trading opportunities. Among the various candlestick patterns, the One Black Crow pattern is considered highly reliable. Are you interested…
How do you start making money online in trading? It’s a question that looms large for anyone looking to tap into digital markets. Our guide demystifies the process, presenting practical steps and cautionary advice with real-world applicability. From selecting the…
The Bearish Engulfing candlestick is a technical analysis tool used by traders to identify potential trend reversals from an uptrend to a downtrend. While the Bearish Engulfing pattern does not guarantee a trend reversal, it can help identify potential entry…
The Bearish Belt Hold candlestick pattern is one that has been around for a while. It’s not one of the common ones, but it still has a sizeable number of fans among candlestick pattern traders. A Bearish Belt Hold is…
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 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…
There are many indicators and tools for technical analysis, but only a few have leading properties like the Fibonacci tools, which is why Fibonacci trading is popular among traders. But how do you trade a Fibonacci trading strategy? A Fibonacci…
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…
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?…
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….
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…
Market breadth indicators provide different information about the stock market in a way that other market indicators do not. But what is the market breadth? Market breadth indicates the total number of stocks that are rising in price relative to…
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…
Commodity trading strategies involve buying and selling commodities in financial markets based on various analytical methods and market trends to generate profit. Commodity trading is the exchange of various commodities, such as agricultural products, crude oil, natural gas, and metals,…
