ARTICLE SYNOPSIS ...Most traders have used moving average-based trading systems to derive trading signals. But how you define the signal can greatly affect the outcome. Here's a study to help determine the best ways to apply a moving average system...
ARTICLE SYNOPSIS ...Does high volatility translate to big profits, or only to increased risk that in the end lowers profits? Here's a careful look...
ARTICLE SYNOPSIS ...You can use calculations of the relative strength of price, volume, and volatility to filter price movement and help define turning points. In this three-part series, we'll examine three applications of relative strength: the relative strength exponential moving average, the relative strength volume-adjusted exponential moving average, and the relative strength volatility-adjusted exponential moving average. Here in part 1, we'll start with the relative strength exponential moving average...
ARTICLE SYNOPSIS ...Over the years there have been many looks at this venerable, longstanding tool of technical analysis. Here, we introduce an improvement to the RSI that brings this indicator into the age of algorithmic trading. This improved RSI takes advantage of the Hann windowing technique described in an article earlier this year...
ARTICLE SYNOPSIS ...Plotting a parallel channel on a chart helps the trader to see entry and exit opportunities and helps to reveal consolidation and reversals within an ongoing trend. Plotting the parallel midzone helps uncover additional opportunities. Find out how you can apply and interpret this technique...
ARTICLE SYNOPSIS ...Investors and traders looking for market-beating returns might consider placing a small portion of their assets in leveraged ETFs, especially in trending markets. Typically, it's recommended to hold a leveraged ETF for only one day, due to its daily reset and possible negative compounding if it declines. But does that advice always hold true? Multiyear returns for 3X bullish leveraged ETFs have been exceptional since 2010. Here, we'll take a look...
ARTICLE SYNOPSIS ...Sometimes, to improve clarity, it pays to flip a chart upside down and study it that way for a while...
ARTICLE SYNOPSIS ...Whenever you are looking for technical signals to help you day trade, one of the most important things to keep in mind is the prior day's range...
ARTICLE SYNOPSIS ...Want to find out how the futures markets really work? DeCarley Trading senior analyst and broker Carley Garner answers your questions about today's futures markets. This month: Hedging Options With Futures...
ARTICLE SYNOPSIS ...Have a question about system or algo trading? Kevin J. Davey is a full-time trader, and has over 25 years of system trading experience. Send your questions or topic suggestions to Kevin Davey at kdavey@kjtradingsystems.com. Selected questions will appear in a future issue of S&C. This month: Strategy Correlation And Market Correlation: A Look At Seeking Diversification...
ARTICLE SYNOPSIS ...Got a question about options? Jay Kaeppel has over three decades of experience in the options markets. He was a head trader for a CTA firm, an options trading software developer, and is a portfolio manager for an investment management firm. This month: Bull Put Spreads: A Look At Timing...
ARTICLE SYNOPSIS ...Rob Friesen is a professional trader and president & COO of Bright Trading (www.stocktrading.com), a proprietary trading firm hosting independent trader/members, an online trading school, and utilizing the StockOdds database (www.stockodds.net). This column shares his thoughts and outlooks on trading, locating opportunity, probabilistic outcome, and maintaining perspective throughout industry changes. This month: Probabilities & Patterns...
ARTICLE SYNOPSIS ...Unserious thoughts on serious topics in finance, from Emilio Tomasini, a professional trader and adjunct professor of corporate finance at the University of Bologna in Italy. This month: The Business Of Trading...
ARTICLE SYNOPSIS ...For this month's Traders' Tips, the focus is John F. EhlersÕ article in this issue, "(Yet Another) Improved RSI". Here, we present the January 2022 Traders' Tips code with possible implementations in various softwa...
ARTICLE SYNOPSIS ...The following selection of book descriptions represents a sampling of recent book releases in the investing field. This month: Day Trading The Dow Mini: A Practical Guide For Market Participation, third edition; Stock Trader's Almanac 2022, 55th edition; The World's Simplest Stock Picking Strategy; Risk Parity: How To Invest For All Market Environments...
ARTICLE SYNOPSIS ...Trading liquidity is often overlooked as a key technical measurement in the analysis and selection of commodity futures. The following explains how to read the futures liquidity chart published by Technical Analysis of STOCKS & COMMODITIES every month...