How to Trade Trends: A Comprehensive Guide
Trend trading is a fundamental strategy for many traders, offering the potential for significant profits if executed correctly. However, mastering trend trading requires more than just following a single indicator. In this guide, we'll explore the intricacies of trend trading and how you can enhance your strategy for...
In the world of financial markets, predicting future price movements is akin to unlocking a treasure chest. Two of the most prominent methodologies used by traders and analysts to decipher market movements are Trend Following and Mean Reversion. Each approach offers a unique perspective on how markets behave and provides strategies for capitalizing on this...
Trading indicators are essential tools for traders and investors to analyze and interpret financial market data. These indicators, derived from mathematical calculations based on price, volume, or open interest, etc, aid in visualizing market trends, momentum, and potential reversals. They serve as an additional layer of analysis, offering a structured and...
Trading indicators are essential tools used by traders and investors to analyze price data, identify trends, and make informed decisions in financial markets. They provide valuable insights into market dynamics, helping market participants gain a competitive edge. This comprehensive explainer will delve into what trading indicators are, how they are utilized, and...
Hey there traders, Stock Justice here! Are you ready to elevate your trading game? Today, we're going to delve into an exciting indicator I call 'Bars since EMA touch', or 'BSET' for short. Buckle up, because we're about to kick your technical analysis up a notch!
The BSET, at its heart, revolves around the Exponential Moving Average, or EMA. When setting up...
There are three kinds of lies: lies, damn lies, and statistics. Fortunately, not always. Statistics enables investors and traders in financial and commodity markets.
In statistics, mean is also known as the average. It is a number that represents the entire data set. Mean is the sum of the data set divided by number of data points in it. For example, in a group...
In this video I go over how I trade with my custom mean-reversion histogram and overlay indicator, explaining the logic behind my entires and profit-taking levels. This example is taken from $SPY on the 1-minute chart, and I examine all four of the alerts that the indicator gave today. Comment below with any questions!
Well ladies and gentlemen I think I have created a monster and I'm really happy to call it the heiken Ashi algo and the Mass Effect moving average combination.
Don't worry I have not been leaving you hanging. It's just been very busy and I want to make sure that this thing works beautifully for you.
So what is the heiken Ashi algo oscillator?
it is an...
Many classic indicators such as MACD, RSI, EMA are basically a combination of "iron triangle" equipped by hand. The more advanced ones may be candle pattern analysis and Elliott wave theory. Today we are going to talk about trading strategies based on volatility and linear regression, as well as correlation coefficients. These indicators are easy to create in...
Strategy type: Breakout
Ingredients: Price, Volume, Regression
Prerequisite add-ons (free): Regressive VWAP and Strategy Visualizer
Target market: CME:BTC1! or BITSTAMP:BTCUSD
- Long Entry on Close crossing over Regressive VWAP
- Short Entry on Close crossing under Regressive VWAP
- Optional: exit when price retraces to upper band (LX) or lower band...
The holy grail of diversification is to find several uncorrelated asset classes all with positive returns. One problem, though, is that diversified passive investing has caused all asset classes to become more and more correlated over time. Increasingly, you see stocks, bonds, commodities, and cryptocurrencies all move together.
One approach to diversification...
Using standard deviations in trading can be helpful in many way with keeping you on the right side of your trades in this video I break down how I use or would use the 1SD 2SD and 3SD based upon the percentage of time price normally traverses through each SD.
This is a really simple (almost too simple) way of predicting the most likely number of candles before a revisit to a certain level, presuming no outside factors increase the required sample of study. I have just tried to predict very specific candle positions and times as well as the bottom, but this is only for the extreme near future (ie, the easiest to...
Best Mean Reversion Strategy:
Before we get to that point, first and foremost, let’s see what tools we need to use for this strategy.
The best mean reversion indicator that works 85% of the time is the RSI indicator.
So, you will need the RSI oscillator on your charts.
Now, there is one more important thing that needs to be done. The RSI settings must be changed...
I'm sharing a strategy I've used for many years, that is scalping certain forex pairs after the US market closes and before the Asian markets open. During this time there isn't any economic news released so prices have a tendency to oscillate and don't trend which is a perfect environment to use the Buy Sell Bands for a mean reversion strategy.
Hello friends,
In the last post, I mentioned the first major technical trading strategy that is available to you, in this I will cover the second and finish this two-part short series of posts.
The moving average is a very simple, but very versatile and useful tool. Averages are just kind of an amazing mathematical beauty in themselves, you can do a lot with...
