A buy stop order is a manual instruction entered into your broker’s platform to enter into a long stock, option, or forex position when its price rises to a predetermined level. When the price target is reached the buy stop converts to a live market order or limit order looking to be filled at the […]
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The Richard Wyckoff Theory of accumulation and distribution focuses on supply and demand for a stock, cause and effect, and the law of effort for a stock. Here are the five steps to the Wyckoff Method strategy for stock selection and trade entry: 1. What could be the probable future trend of a stock based
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An Evening Star is a group of candlesticks that create a chart pattern used in technical analysis to signal a high probability that a current uptrend in price could reverse. This is a bearish candlestick pattern created by three candles in a row consisting of a large white/green candlestick, a small candle that is usually
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The problem with the Turtle trading strategy is that during breakouts that reverse you can be a dead turtle. The Turtle Soup trading strategy was created by legendary trader and Market Wizard Linda Bradford-Raschke. This is an inverse strategy to the legendary Turtle traders trend following system that they used to make millions in trending
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Peter L. Brandt has been a full time professional commodity and foreign exchange trader for over thirty years. He has worked as a broker to large industrial clients, traded for his own account, and was one of the early pioneers in the commodity hedge fund arena. Along the way, Brandt published a highly regarded newsletter
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Even if you have a valid trading system and good risk management if you don’t have the right trading psychology you will not be able to execute it consistently over the long term. Here are the 10 principles of trading psychology that separate the winning traders from the losing traders. Stop looking for a Holy
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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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Option trading can be explained as buying or selling a contract with the expectations of making money before the option expires. An option buyer wants an option to go higher and be able to sell it for more than they bought it for before expiration or have it exercised with intrinsic value for more than
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The McClellan oscillator is a market breadth technical indicator used by traders to analyze the New York Stock Exchange listings balance between the advancing and declining stocks over time. The McClellan oscillator quantifies the Advance-Decline Data on a stock market exchange, it could also be used on stock indexes, portfolio holdings, or any watchlist of
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The MACD-Histogram quantifies the distance between MACD and its 9-day EMA signal line. The histogram reads positive when MACD is above its 9-day EMA and reads negative when the MACD is below its 9-day EMA. The MACD-Histogram is a technical oscillator that moves both above and below the zero line on its chart. The MACD-Histogram
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