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Momentum Trading Strategy

Tuesday, May 19th, 2009

Description: The momentum (M) is a comparison of the current closing price (CP) and a specific length of the previous closing prices (CPn). Calculation: M = Closing Price [today] – Closing Price [n days ago] The Momentum indicator is a rate of change indicator that is designed to identify the speed of a price movement. [...]

Trading with the QQE

Thursday, May 14th, 2009

QQE, which is actually Quantitative and Qualitative estimation is based on exponential moving averages of RSI or relative strength indicator. QQE can be used in many ways and based on many different levels of smoothing averages, most popular that I have seen used in my trading are 2, 5, 30 and 60, I employ 5 [...]

The gartley pattern part 2

Sunday, May 10th, 2009

In our last article, we discussed how the Gartley pattern is formed and where entries and stops should be placed for the initial trade. In this article we will discuss ways to profit from the pattern and maintain appropriate risk management. Every trade should have targets. These can be fixed targets or dynamic ones specific [...]

The gartley pattern part 1

Sunday, May 10th, 2009

The Gartley pattern was outlined by H.M. Gartley in his book Profits in the Stock Market, published in 1935. Gartley reversals appear on all time frame charts. These patterns form near important support or resistance levels and are very powerful. It’s important to note that these patterns as with most patterns work best if found [...]

Trading with the MACD indicator

Tuesday, May 5th, 2009

The MACD (Moving Average Convergence/Divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of price. The MACD was invented in 1979 by Gerald Appeal. This is probably the most popular indicator whether you trade Stocks, FOREX, or Futures. The MACD is commonly used as a trend or a momentum indicator. [...]

How to Determine the Direction of a Trend

Monday, May 4th, 2009

Before you decide to go long or short, there are several criteria you should check: I. Pick a time frame that you like to use as the trend time frame / chart. An up trend on one time frame (eg: daily) can be a consolidation on the higher time frame (eg: weekly).It is also important [...]

Which is better – Forex Futures or Spot FX?

Friday, December 12th, 2008

You will see a lot of marketing materials out there explaining why the spot market is so much better and cheaper than the currency futures market, but how much of it is fact and how much is hype? What are the real differences between these two closely related markets? Is it really cheaper to trade [...]

“Do You Wanna Fight?”

Wednesday, February 6th, 2008

by Jim Wyckoff¬† I was busy Friday morning writing my “Glance at the Markets” feature for financials, when I got an email from a trader. He said he was bullish coffee and wanted to go long. All morning long, it seemed, trader emails had been popping up on my computer screen–and many were advocating playing [...]

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