When you place an order to trade a stock there a couple of different types of orders you can use and knowing how they work will help you understand where and when to use them. What is a limit order? A limit order is an order type that tells market centers that you want to […]
When placing orders to trade stocks you can place a couple different types of orders but the one I want to talk about now is called market orders. When you place a market order you are saying that you will buy or sell at whatever price the market price is when you submit your order. […]
Time and sales (AKA the tape) is a tool that shows every trade that has been executed along with the size and time for that trade. In the image below you will see that there are green and red prints along with white prints, time of trade and the size on the right. The […]
The Average True Range is a trading term used to the measure the volatility of a stock or index. It’s a technical indicator that tells us the average price range a stock typically trades in and was first introduced by Welles Wilder. It calculates the average price range over a given period time, usually for […]
A market maker is a broker-dealer who has been certified, and/or has met capital requirements, to facilitate transactions in a particular security between the buyer and sellers. They typically hold a lot of inventory of shares in that security so they can fulfill large amounts of orders in a moments notice. How Market Makers […]
What are Level 1 Quotes? Level 1 quotes are a type of quote for a stock that provides three basic data points: The last price traded The current highest bid price The current lowest ask/offer price They’re called “level 1” quotes because there’s three levels of quotes in the US stock market. Level 1, […]
Many traders rely so much on technical indicators that they avoid or forget that all indicators are derived from price, so when you are using indicators you are adding an extra layer of analysis between yourself and price. Technical indicators are like different colored lenses, each one offers a different view, but the clearest view […]
Candlesticks are used for charting price action by displaying the high, low, open and close prices for the time period specified. Depending if the candlestick closes higher or lower from the opening price, it will have a different color, usually either red or green where red marks a down candle and a green marks a […]
Of all the patterns created by price action, the flag and pennant pattern are some of the easiest to recognize as well as trade. They provide excellent entry and exit points with defined risk and reward scenarios. Below we’ll compare their differences in both appearance and trading tactics. Flag Pattern A popular trading pattern for […]
