The term “parabolic move” came about as part of trader slang describing a price move that goes up at a high rate of velocity and magnitude on a chart. It’s a chart making an upward price move that looks like the right side of a parabolic curve. A parabolic move happens when the speed and […]
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Ed Seykota is a trend following trader that uses reactive technical analyses through quantified trading signals to capture large profits during trending price action. He has parameters for proper position sizing, volatility filters, and optimizes his strategy for large wins and small losses. Ed Seykota Trading Rules “In order of importance to me are: 1)
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What is the Wyckoff Theory? The Richard Wyckoff Theory of accumulation and distribution focuses on supply and demand for a stock, the cause and effect, and the law of effort for a stock. It tries to measure and quantify whether a stock chart is being bought and held to create an uptrend or systematically sold
Is there a simple moving average monthly trend trading strategy that crushes buy and hold investing? Buy and hold investing on the S&P 500 index with an exchange traded fund or a low cost mutual fund is a top performing system that few money managers and traders can beat over ten-year periods. This is a
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Trending markets are ones that go in one primary direction for a sustained period of time. Here are the signals for an up trending market: The chart makes higher highs and higher lows. Price is trending above the moving average of the time frame being analyzed. Price is near all-time highs or 52-week highs. The
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Is there a simple moving average trading strategy that crushes buy and hold investing? If so, what moving average and time frame combination would accomplish this going back at least 20 years? The 200-day simple moving average as an end of month signal on the SPY ETF accomplishes this feat. Buy and hold investing on
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Exponential moving average crossover signals are one way to capture trends on a chart by entering a long trade when a shorter term moving average crosses over a longer term one, then exiting as the shorter term moving average crosses back under the longer term one. The inverse of this are moving average cross under
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The Nicolas Darvas box theory is a trend trading method where a breakout of price is bought and held as ranges build on top of each other. Nicolas Darvas used this process in the 1950’s to make over $2.25 million in a strong bull market. He was a top touring ballroom dancer by profession and
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The flat top breakout chart pattern gets its name from the top of the chart being flat as sellers and buyers have met and agreed at the key resistance level. Once trades take place above that flat upper resistance level it is considered a breakout above that level. Flat top breakout trading is used by
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Is there a simple moving average monthly trading strategy that crushes buy and hold investing? Buy and hold investing on the S&P 500 index with an exchange traded fund or a low cost mutual fund is a top performing system that few money managers and traders can beat. This is a good core strategy for
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