Secret of Setting Exits in Trading
November 15, 2009
Whenever traders enter a trade, they must have 3 factors clear in their mind; where to get in, where to take profits, and where to cut and run if market turns against them.
The secret of exiting a trade for professionals is to plan their exits. Before entering a trade, professionals set their specific target and stop price levels. While beginners keep searching for entries.
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How to Place Stops using the SafeZone?
November 3, 2009
Where traders should put their stops? This is one of the hardest questions in technical analysis. Stops have to tight enough to protect capital and also have to distant enough to keep clear of meaningless swing.
If look at trading in engineering point of view, the concept of signal and noise in engineering can be applied to trading by considering the trend as the signal and the non-trending motion as the noise. To reject noise and allow the signals to come through, filters is designed in engineering. Therefore the stops in trading have to be designed to allow the trend come through and reject the countertrend motion.
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Forecast Price using Pivot Point Analysis – Part 2
October 5, 2009
The basis of pivot point formulas, which traders use to calculate pivot point numbers, involves several steps. Traders should be able to interpret the rationale behind the calculations.
According to the traditional formula, the pivot point is considered as the average of the previous session’s trading range combined with the closing. The support and resistance levels that are calculated from the formulas indicate the potential trading ranges for the next trading session, based on the past weight of the market’s strength or weakness derived from calculating the high, low, and distance from the close of those points.
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Forecast Price using Pivot Point Analysis – Part 1
September 28, 2009
Pivot Point Analysis is a price forecasting method that is very popular among professional day traders. There are some other terms, such as price range forecasting or pin-pointing tops and bottoms, that used to refer to the numbers derived by pivot points.
The Pivot Point Analysis is considered as a leading indicator rather than a lagging indicator since it provides the early advanced target levels for traders. Traders could use the pivot point numbers from previous session to identify the support and resistance levels in the next trading session.
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Easy Profits from Moving Averages Trading – Part 2
September 20, 2009
Moving Averages (MAs) could be used from the simple to the complex trading system. The basic of trading using MAs is to trade in the same direction of their slope.
When enter a trade, don’t buy high above Moving Average or sell low below MA. Enter a trade when price return to MA. When traders buy or sell near MA, place a tight stop slightly below (if buy) or above (if sell) the MA.
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Easy Profits from Moving Averages Trading – Part 1
September 13, 2009
Moving Averages or MAs are among the simplest tools for technical traders. They are ones of the most useful tools that help traders in identifying trends and finding entry points.
The Moving Averages are plotted on price charts. No matter what time-frame is used, traders can apply Moving Averages on it.
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The Kangaroo Tail Pattern in Technical Analysis
September 8, 2009
The kangaroo tails is a pattern that points trading opportunities for traders. It has been introduced in Alexander Elder’s book, Come Into My Trading Room.
The tails could be used to mark trend reversals in markets. While trends need long time to form, the kangaroo tails are formed in just a few days.
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What is Trading Volume and How to use it for Technical Analysis?
August 10, 2009
In technical analysis, Trading Volume is an indicator that indicates the strength of market trend. Trading Volume, which is usually referred to as Volume, is simply the number of trades executed during defined time period.
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Recent Articles
- Turtle Trading #2 A Complete Trading System
- Turtle Trading #1 Introduction to Turtle Trading System
- Secret of Setting Exits in Trading
- How to Place Stops using the SafeZone?
- Forecast Price using Pivot Point Analysis – Part 2
- Forecast Price using Pivot Point Analysis – Part 1
- Easy Profits from Moving Averages Trading – Part 2
- Easy Profits from Moving Averages Trading – Part 1
- The Kangaroo Tail Pattern in Technical Analysis
- Introduction to Pyramid Trading System
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