How to Measure Volatility. Volatility is something that we can use when looking for good breakout trade opportunities. Volatility measures the overall price fluctuations over a certain […]
How to Trade Breakouts. What are breakouts and how can I take advantage of them? Unlike the breakouts you might have had as a teenager, a […]
Protect Yourself from Reversals. Whenever Happy Pip goes swimming at the beach or the pool, she always wears her pink rubber ducky floaters. Whenever she trades […]
More on Identifying Retracements. Let’s do more on identifying retracements. Here are two more methods. Method #2: Pivot Points Another way to see if the price […]
How to Identify Reversals and Retracements. Properly distinguishing between retracements and reversals can reduce the number of losing trades and even set you up with some winning […]
What are Trend Retracements? Let’s take a look at what are trend retracements. A retracement is defined as a temporary price movement against the established trend. Another way […]
Trend Retracement or Reversal? Let’s examine the difference between trend retracement or reversal. Imagine this scenario. Price starts to rise. Keeps rising. Then it starts falling. […]
ADX in a Ranging Market. One way to determine if the market is ranging is to use the same ADX as discussed in the ADX lesson. I say […]
What is a Range-Bound Market? What is a range-bound market? A range-bound market is one in which price bounces between a specific high price and a low price. […]
Bollinger Bands in a Trending Market. One tool that is often used for range-bound strategies can also be helpful in trend discovery. We’re talking about Bollinger Bands or […]
Moving Averages in a Trending Market. If you’re not a fan of the ADX, you can also make use of simple moving averages. Check this out! Place […]
ADX in a Trending Market. A way to determine if the market is trending is through the use of the Average Directional Index indicator or ADX for short. […]
What is a Trending Market? What is a trending market? A trending market is one in which price is moving in one direction. Sure, the price may […]
Know Your Trading Environment. When two people go to war, the foolish man always rushes blindly into battle without a plan, much like a starving man […]
Divergences are NOT a Trade Signal. Please keep in mind that we use divergence as an INDICATOR, not as a signal to enter a trade! It wouldn’t […]
Divergence Cheat Sheet. Have you had your fill of learning how to trade divergences? Let’s review! Divergence is a popular concept in technical analysis that describes when the […]
More on Rules for Trading Divergences. Let’s continue with reviewing the last three rules for trading divergences. 6. Keep Price and Indicator Swings in Vertical Alignment […]
More Rules for Trading Divergences. Let’s continue reviewing rules for trading divergences. 2. Draw lines on successive tops and bottoms Okay now that you got some […]
9 Rules for Trading Divergences. Let’s look at 9 rules for trading divergences. Traders use divergences in an attempt to determine if a trend is getting weaker. […]
Divergences. Wait for the indicator to move out of overbought/oversold territory. Another trick would be to wait for momentum highs and lows to hit overbought and oversold conditions, […]
How to Avoid Entering Too Early When Trading Divergences. While using divergences is a great tool to have in your trading toolbox, there are times when […]