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Creating A Complete Trading Method Using 20 Day Exponential Moving Average
Today I'm going to show you the correct way to enter this strategy and where to place your stop loss order. I highly suggest you pick stocks, futures or forex markets that are going through volatile periods. Most swing trading methods require strong volatility and this method is no exception. You can see in this example how Facebook stock began trading well above the 20 day EMA before moving completely below the average. The stock stayed below the EMA for less than 2 trading sessions. Remember you never want the stock or other market you are trading to stay below the average for more than 5 trading days.Read More
The RSI Is One Of The Best Swing Trading Indicators
A few weeks ago, I wrote a short how to article describing how to use swing trading indicators. The one indicator I focused on was the RSI or the Relative Strength Indicator.
After I posted the article I received several questions and comments asking for further examples so that traders could get a better feel for using this method to swing trade stocks. In this tutorial I will outline the steps I go through to apply the divergence method to stocks in more detail.Read More
The ATR indicator stands for Average True Range. It was one of the handful of indicators that were developed by J. Welles Wilder, and featured in his 1978 book, New Concepts in Technical Trading Systems.
Although the book was written and published before the computer age, surprisingly it has withstood the test of time and several indicators that were featured in the book remain some of the best and most popular indicators used for short term trading to this day.Read More
The MACD Trading Indicator
Today I'm going to introduce you to the MACD trading indicator. The MACD indicator is a trend momentum indicator that's basically a refinement of the two moving averages and measures the distance between the two moving average lines. MACD is an acronym for Moving Average Convergence Divergence.Read More
Anyone who has basic experience day trading will tell you that one of the biggest challenges for most traders is finding stocks and other markets that are moving with sufficient momentum and volatility to make day trading worthwhile.
I can tell you from personal experience that there's nothing more frustrating than getting into a fast moving market only to see it slow down immediately after my entry order has been filled.
Because day trading is based on intraday momentum, you want to make sure the markets you chose and the strategies you pick have enough momentum to justify your risk.Read More
One of the most fundamental technical analysis tools that traders start off with is the moving average indicator. A few weeks ago I presented a short tutorial on utilizing the moving average indicator for short term trading. I demonstrated the best settings and presented a few demonstrations so that traders could get a good feel for using this basic analysis tool.Read More
From Charles Dow, Robert Rhea, and Richard Schabacker – all early pioneers of stock market technical analysis – four driving principles of market dynamics have endured the test of time and still guide technical trading decisions across all time frames.
Each of the following principles can be quantified mathematically and most (if not all) mechanical trading systems are based on at least one principle.Read More
One of the first trading methods I learned was a simple channel breakout. What I like about channel breakouts is they are so simple to learn and it doesn't take much to identify these channels.Read More