Most of the mainstream trading literature is chock full of references to patterns with funny names, like the megaphone pattern. To novices looking to learn the ropes, this can come off as a practice in reading tea leaves or moon cycles. And while the trading world admittedly has its fair share of quacks, the purpose […]
The world of day trading has extremely few barriers to entry, meaning any person with an internet connection, a computer or a smartphone, and a bit of startup capital can theoretically become a day trader. Many jump into day trading, hoping to earn profits quickly and with minimal effort. However, reality makes its adjustments, and a […]
This is going to start the week here by talking about how to trade through a bear market. I thought this would be a good way to kind of set the stage because obviously, if you look at the S&P 500, you can tell that we are in a bear market and traders frequently […]
If you’re like most traders, you specifically avoid “event volatility” like earnings reports and key economic data releases. But you should know that the majority of volatility is attributable to these binary catalyst events. Not knowing how to trade around these significantly cuts into your opportunity set. One of the cornerstones of volatility events is […]
Hope everyone had a great Memorial Day weekend. This is the unofficial start of summer, especially in the finance world, and typically marks an overall decrease in volume as Wall Street starts to split its focus between Fire Island, the Hamptons, and work. Following the long weekend, we had a shortened trading week this […]
What’s up, everyone? All right. So the topic of today’s episode is The Banana Squeeze. If you haven’t heard of the banana squeeze, this is technical set up. Every day traders should know about the banana squeeze. Learn More About the Banana Squeeze Here! You may have even traded a banana squeeze, but […]
A pivot point is a crucial turning point in the price of a stock or security that a lot of traders tend to trade around. It’s basically a price at which the stock stops going up or down and reverses in the opposite direction. It’s the price at the foremost extreme of a rally. Pivot […]
A candlestick shadow represents the extremes of where the price visited during the life of a candlestick on a chart before closing at its ultimate price. On a bullish candlestick, the shadows represent the difference between the closing price and the high price (upper shadow), and on a bearish candlestick the shadow represents the difference […]
The Chaikin Money Flow is a technical analysis indicator that is used to measure the buying and selling pressure in a stock over a period of time. Intro In the world of trading, huge market movements are usually triggered by the actions of giant hedge funds, mutual funds, pension funds, brokers, and other whales that trade the […]
The trend is an important feature of trading that traders use to help them read the market movement better, so they can execute their trading strategies at the perfect moment. Trend strength simply refers to the level of influence buyers or sellers have over the market over a particular time. In a weak downtrend, the […]
