Over the years I’ve seen hundreds (if not thousands) of newbie traders on message boards following simple trading systems that are based on lagging indicators. Because these systems are so simple to understand they are like a magnet anyone who is new to trading. The usual systems which people try to trade are often based on the most common lagging indicators found in any … [Read more...]
You Don’t Use Fibonacci When Trading? Are You Blind?
If you have been day trading for a while, and regularly using charts, it’s pretty certain you have used or come across Fibonacci retracements before. In most charting platforms you’ll find this tool located around with the trend lines options. The Fibonacci retracement tool is usually very easy to use, by clicking on a low and dragging the mouse to a high which places the … [Read more...]
DayTrading Fail: Know The Basic Indicators First Before Advancing
Forex charts are used by foreign currency traders to help determine buying and selling opportunities. In addition to simple charts that show general trend patterns, many indicators are used by traders to witness price action movement on a much deeper level. Most charting software platforms provide a wide range of indicators for traders to measure trend strength, possible trend … [Read more...]
Read This to Understand Pivot Points
Analysts are constantly striving to figure out the patterns within the stock market. Will the stock price continue to go up? Will it plateau? Will we see a crash in the coming days? Looking at trends and attempting to predict the future is the most valuable skill any trader must possess. When the equity price reaches a certain level, known as the support or resistance level, … [Read more...]
MACD Indicator – In Search of Divergence
The MACD indicator is a short abbreviation for moving average convergence divergence. It is a widely used indicator based on a calculation of exponential moving averages and a “signal” line. It is plotted in a separate window underneath the trading chart and can often come with a histogram showing the movement shaded in ranges. The common calculation for an MACD indicator is … [Read more...]
RSI Indicator – Getting The Best From Chart Trends
The RSI Indicator is short for Relative Strength Index. It is a commonly used type of momentum indicator for technical analysis charts which shows you overbought and oversold levels of a price. it performs a calculation on the amount of “up” closes divided by the amount of “down” closes over a set period of days, weeks or hours (depending on the type of trader you are). Take a … [Read more...]