In the stock market, trading volume refers to the number of shares/contracts of a stock that have changed hands over a given period of time. Volume plays a critical role in technical analysis and is recognized as an indispensable indicator that helps confirm trends and patterns. If the price of a stock with a […]
In some of our recent blog posts, we have discussed how moving averages are frequently used by technical analysts and traders to analyze the prices of stocks and other securities. Moving averages are important because they smooth out price fluctuations to help traders distinguish between market noise and the underlying trend. In this post, […]
2021 was a complete break from the norm of the last decade. We’re experiencing the first serious bout of inflation since the 1970s, a rally in commodities that some are calling a new “supercycle,” and some of the craziest short squeezes in history. Many of 2021’s most compelling stories will surely have some place […]
The debate over the relative merits of simple moving average (SMA) and exponential moving average (EMA) is a contentious one. Day traders and investors alike often miss out when they choose one over the other. In this post, we lay out the differences and explain the advantages and disadvantages of each. We are also […]
Most traders agree that a trending market is easier to trade than a range-bound market. Once you hop aboard a trend, you pretty much just have to trail a stop and ride the gains. Sure you deal with plenty of whipsaws and failed pullbacks, but there are far fewer variables in a trending market […]
The basic idea behind a pullback trade is to try to enter a strong established trend on short-term weakness, hoping the trend will continue after some momentary hiccups. Trend trading is a well-accepted trading strategy across all time frames. Institutions sell trend-following products to their clients to ride trends across several months or years, […]
Much of the popular literature in technical analysis deals with the variation between trends and ranges. Traders and investors tend to follow the herd, for better or worse, and whatever the dominant state of a market is, trend or range, traders tend to extrapolate into the future and expect to continue. When these expectations […]
Technical analysis is a key component of the stock market on a number of scales. Traders can use it to pick good stocks to trade and to predict and forecast future stock prices. It can also be used to identify entry and exit points which enables good returns. In this blog post, you are […]
If you are an active day trader, you are probably aware that Fibonacci retracement and extension levels are some of the most important and useful tools in all of price action. Day traders and technical analysts can use Fibonacci levels analysis to confirm an entry-level, target a take profit, and to determine your stop […]
Day traders use technical analysis indicators out of absolute necessity. It would be incredibly difficult to make profits consistently on fast time frames by just relying on fundamental data. As a trader, it is mandatory to use tools that show market data and price action to help you form decisions. But what is technical […]
