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Technical Analysis

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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 [...]

What are Candlesticks?

Wednesday, October 15th, 2008

By Steve Nison “A good beginning is the most important of things.” (Japanese proverb) WHAT ARE CANDLESTICKS? Japanese candlestick (also called “candle”) chart analysis, so called because the lines resemble candles, have been refined by generations of use in the Far East. These charts are used internationally by traders, investors and premier financial institutions. Candle [...]

Riding the Waves: Managing Longer-Term Position Trades for Larger Profits

Sunday, May 25th, 2008

by Timothy Morge Many traders look at longer-term charts and see the large moves that can occur on these longer time-frames. But not many traders catch these large moves. Is it impossible? The key to catching these large moves is using a low amount of leverage to limit your exposure, finding a high probability entry [...]

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