Tactics on Breakouts: Anticipation or Reaction? The trader is forever faced with the dilemma of taking a position in anticipation of breakout, taking a position on th breakout itself, or waiting for the pullback or reaction after the breakout occurs....
We are going to add the important dimension of time to our growing list of analytical tools. Instead of just asking ourselves which way and how far a market will go, we’ll start asking when it will arrive there or...
Elliot wave Theory was originally applied to the major stock market averages, particularly the Dow Jones Industrial Average. In its most basic form, the theory says that the stock market follows a repetitive rhythm of a five wave advance followed...
Moving Average Convergenc/Divergence ( MACD) indicator is an oscillator technique that uses 2 exponential moving averages. What makes this indicator so useful is that it combines some of the oscillator principles with a dual moving average crossover approach. MACD line...
Most oscillator buy signals work best in uptrends and oscillator sell signals are most profitable in downtrends. The place to start your market analysis is always by determining the general trend of the market. If the trend is up, then...
The oscillator is extremely useful in nontrending markets where prices fluctuate in a horizontal price band, or trading range, creating a market situation where most trend-following systems simply don’t work that well. The oscillator provides the technical trader with a...
Similar to the envelope technique, Bollinger Bands are placed two standard deviations above and below a moving average, which is usually 20 days. Using two standard deviations ensures that 95% of the price data will fall between the two tarding...
The moving average is one of the most versatile and widely used of all technical indicators. It is the basis for many mechanical trend-following systems in use today. There are many questions to be considered when using moving averages. Here...