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 […]
June 24, 2014 Due to the insipid early-morning activity on the EUR/USD, I began looking at five-minute charts of a few other currency pairs and eventually settled on observing the GBP/JPY, which appeared to be in the midst of providing a good trade set-up. So I scrapped the euro-dollar for the day and went with […]
Interpreting signals and indicators is the heart, soul and life of a technical analyst and day trader. The signals are how we make our bread and butter. The thing is, the signals are cold and heartless. They do not wave a flag saying “hey, trade me! I’m the best!”. You have to be able to […]
Day Wave trading, or more accurately day to day wave trading, is a short term trading method I have developed utilizing Fibonacci Retracements. For those of you who don’t know Fibonacci Retracements, or FR’s, are a method of predicting and projecting potential areas of support and resistance on a chart of asset prices. The levels, […]
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 […]
The Fibonacci Long Bar Method is a style of trading with Fibonacci Retracements that I have developed over the years. This method focuses on day and day to day trading utilizing retracement levels following a sharp single day rally or decline. This method is not suitable for everyday use but is quite handy at pinpointing […]
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 […]
Hello! I am very happy to return back to my blog for at least these next couple months. For those who have followed me in the past, you know that I’m a college student and therefore my academics unfortunately get in the way of being able to trade and update my blog here. But many […]