Wealth Building Tips

Wealth Building Tips

The RSI - One Of The Best Swing Trading Indicators

A few weeks ago, I wrote a short how to article describing how to use swing trading indicators. The one indicator I focused on was the RSI or the Relative Strength Indicator.

After I posted the article I received several questions and comments asking for further examples so that traders could get a better feel for using this method to swing trade stocks. In this tutorial I will outline the steps I go through to apply the divergence method to stocks in more detail.

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Swing Trading Indicators – Advance Decline Line

Not All Trading Indicators Are Created Equal

There are dozens if not hundreds of different  trading indicators traders use to help them gauge short term market action.

One of the most important and often misunderstood indicators is the (NYSE) Advance Decline Line.

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MACD Indicator And Center Line Crossovers

Today I will focus on the most common way traders utilize the MACD and show you some basic examples so that you can become a bit more familiar with the MACD indicator.

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Stock Chart Patterns – How To Trade Breakouts

Not All Stock Chart Patterns Are Created Equal There are hundreds of stock chart patterns traders use to enter as well as exit the market.

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Swing Trading Options Strategies

Over the last few months,  I’ve received several emails asking me questions about Swing Trading Options Strategies and how to apply our trading strategies to the options market. 

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Technical Analysis Basics – The Moving Target Strategy

The Moving Target Strategy Can Make A Difference In Your Bottom Line

During the last few weeks, I received a few emails asking me to go over some technical analysis basics. This is not a very unusual request, I regularly get at least 10 emails per week asking me to teach more simple strategies and basic analysis techniques.

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The 52 Week Pop Strategy

Today I’m going to teach you a great momentum strategy. This is one of the first strategies I teach people who want to learn to day trade Stocks, Futures and Forex markets.

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MACD Trading Tactics For Beginners

Today I’m going to introduce you to the MACD trading indicator. The MACD indicator is a trend momentum indicator that’s basically a refinement of the two moving averages and measures the distance between the two moving average lines. MACD is an acronym for Moving Average Convergence Divergence.

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Support And Resistance Trading Tactics

One of the best ways for beginners to get their feet wet is to learn simple support and resistance trading strategies.

Often times beginners who know very little about financial markets begin with advanced techniques that can land them in hot water very quickly if they are not careful.

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Cup And Handle Pattern Recognition And Chart Analysis

The Cup And Handle pattern is often used by traders for long term stock trading analysis. However, this pattern is also effective for short term trading strategies that set up over the course of a several weeks instead of years. The pattern also works surprisingly well with other financial markets such as futures, commodities and currencies.

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Breakout Trading Strategies 101

Today I’m going to show you how to incorporate simple channel breakout trading strategies into our trading plan.

Often times traders transition from short term trading to day trading using simple methods such as channel breakouts.

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Risk Protection With Put Options and Stop Loss Orders

Most professional traders employ some form of downside protection to hedge their position against loss, caused by their long position turning against them and moving beyond expected trading range .

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Swing Trading Tips For Beginners

How exactly do I know if the market is sloping 20% one way or another?

Is there a tool to measure the slope?

Yes, there are two tools that you can use to measure the slope of a trend.

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Identifying High Probability Breakout Stocks

Finding breakout stocks is both an art and a science. Traders rely on visual analysis as well as technical indicators to help them find high probability set ups that produce less false breakout signals.

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Trading 20 Day Exponential Moving Average

Last weekend I was asked by numerous traders who practice technical analysis of stocks and commodities, what indicator I preferred to use the most.

The answer was the Exponential Moving Average or (EMA) for short. I demonstrated yesterday how to use the EMA to measure pullbacks away from the main trend.

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Bollinger Bands Strategy – How To Trade The Squeeze

Today I’m going to discuss a great Bollinger Bands Strategy. Over the years I’ve seen many trading strategies come and go.

What typically happens is a trading strategy works well on specific market conditions and becomes very popular.

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Introduction to Historic and Implied Volatility

When figuring out the true value of an option, volatility can be the most important factor that will influence the options price over it’s lifetime. At the fundamental level, volatility means movement of the underlying asset. 

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Best Technical Analysis Methods for Options Trading

Unlike traditional assets, options offer traders the flexibility that comes with different calls, puts, strike prices and expiration dates; not to mention the ability to create hundreds of different types of spreads and combinations to take advantage of different types of market conditions, volatility disparity as well as seasonal tendencies.

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Modified RSI Indicator For Swing Trading and Day Trading

One of the simplest indicators to use when learning day trading is the RSI indictor. A few weeks ago I demonstrated how to adjust the settings on the RSI to make it work better for short term and day trading market action.

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Learn Technical Analysis – The Right Way

In this article, I will present basic techniques for beginners who want to learn technical analysis trading strategies. More specifically, I will focus on my favorite indicator - the Exponential Moving Average or EMA for short. I will also demonstrate the difference between the Simple Moving Average (SMA) and the (EMA).

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Stock Swing Trading Strategies – Can You Pick Market Tops?

There Are No Stock Swing Trading Strategies That Can Predict Market Tops

Today’s topic is going to cover stock swing trading strategies that assist traders in locating market reversals.

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Technical Analysis Patterns – Continuation Patterns

Today I’m going to show you how to utilize the symmetrical triangle and demonstrate the ideal market conditions for set ups using the Symmetrical Triangle chart pattern.

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MACD Indicator And Center Line Crossovers

Today I will focus on the most common way traders utilize the MACD and show you some basic examples so that you can become a bit more familiar with the MACD indicator.

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Technical Analysis Basics – The Moving Target Strategy

As you may be aware, there are dozens of different exit strategies. Just like entry strategies, they are based on either chart patterns; price action or technical indicators. Today I will cover one of my favorite exit strategies. I call this method The Moving Target exit strategy and after I demonstrate it you will see exactly why I call it that.

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The 2X Inside Day Strategy Revisited

One of my favorite day trading techniques is to utilize swing trading or short term trading strategies and reduce the time frame to intra-day once I’m comfortable trading the strategy using longer time frame.

 

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Short Term Trading Indicators – Bollinger Bands As Trend Filter

Today I’m going to show you how to use one of my favorite short term trading indicators to determine market conditions and market direction. The Bollinger Band was invented by John Bollinger in the early 80’s. It is mostly widely used as an indicator to locate overbought and oversold market conditions. It quickly became one of the most popular short term trading indicators.

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Profit Targets and Expectancy For Active Traders

Most traders who start out learning day trading or short term trading tactics tend to focus on the entry method the most when they first start out.

There have been countless studies to prove this point and if you doubt me just go online or take a look at a trading magazine and you will see articles and advertising for entry methods that produce high percentage of winners to be the most popular topic online and offline.

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How To Analyze Stocks Using Technical Analysis

Today I will show you a simple process so you can learn how to analyze stocks in a systematic way.

I will show you some of the same steps that I teach my students and practice myself daily.

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Breakout Trading Strategies 101

Today I’m going to show you how to incorporate simple channel breakout trading strategies into our trading plan.

Often times traders transition from short term trading to day trading using simple methods such as channel breakouts.

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Swing Trading Tips For Beginners

Every month I get numerous requests for swing trading tips from traders who are just starting out.

What I typically do is make a note of the most relevant and frequently asked questions and answer these questions in a monthly article.

This month I received dozens of great questions relating to several different topics and I will do my best to answer these questions in today’s article.

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The RSI Is One Of The Best Swing Trading Indicators

A few weeks ago, I wrote a short how to article describing how to use swing trading indicators. The one indicator I focused on was the RSI or the Relative Strength Indicator.

After I posted the article I received several questions and comments asking for further examples so that traders could get a better feel for using this method to swing trade stocks. In this tutorial I will outline the steps I go through to apply the divergence method to stocks in more detail.

Continue reading

MACD Chart Divergence Analysis

The last few days I focused on demonstrating the different parts of the MACD indicator so that you would become familiar with MACD and more importantly less intimidated when analyzing MACD chart patterns. Most beginners have difficulty learning the MACD because it’s made up of several parts that interact with one another.

Once you understand how the MACD line is calculated and understand what each of the three parts of the indicator calculate the indicator becomes very simple to understand and moreover to utilize.

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Best Technical Indicators – Learn The Stair Step Method

Recently,  I demonstrated how to take a simple stochastic indicator and create one of the best technical indicators for short term trading.

Today I’m going to expand and show you another entry method using the same indicator and the same settings. If you have not read yesterday’s article or have not seen the video, there’s a link to both at the bottom of  this page for you to review.

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Trading 20 Day Exponential Moving Average

Last weekend I was asked by numerous traders who practice technical analysis of stocks and commodities, what indicator I preferred to use the most.

The answer was the Exponential Moving Average or (EMA) for short. I demonstrated yesterday how to use the EMA to measure pullbacks away from the main trend.

Continue reading

Swing Trading Indicators – Advance Decline Line

There are dozens if not hundreds of different  trading indicators traders use to help them gauge short term market action.

One of the most important and often misunderstood indicators is the (NYSE) Advance Decline Line.

Continue reading

How to Pick Winning Stocks

Stock traders are always on the lookout for ways to improve their trading. There are hundreds of different Stock Market Analysis Tools to choose from when analyzing stocks and the stock market in general.

Each week I get emails from around the world advertising new and improved technical indicators and trading tools to help you increase your percentage of winners, increase the size of your winners and decrease the number of losing trades and the size of each losing trade.

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How to Trade Breakouts

Not All Stock Chart Patterns Are Created Equal 

There are hundreds of stock chart patterns traders use to enter as well as exit the market.

One of the most if not the most popular entry method is the breakout. A few weeks ago I wrote a short article outlining success rates with breakout stock chart patterns.

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Stock Swing Trading Strategies – Can You Pick Market Tops?

Today’s topic is going to cover stock swing trading strategies that assist traders in locating market reversals.

During the last few days the market has been selling off a bit and if you watched financial news channels you would have noticed that whenever the market slides off a bit, there’s always talk of doom and gloom.

It’s the way the news media has operated for as long as I can remember.

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How to Find Trending Markets and Manage Your Risk

Many traders, who are starting out, have a strong believe that swing trading stocks techniques have to be complex to be profitable. I want to reiterate again as I have mentioned many times this is just not true. There is no correlation between complex strategies and profitability.

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Swing Trading: Introducing The 52 High/Low Strategy

There are hundreds if not thousands of swing trading stocks strategies that are available to traders today. Unfortunately, the majority of these strategies or techniques don’t provide the results traders are looking for.

Moreover, one of the biggest reasons traders don’t follow trading rules is because the strategy seems overly complicated or too advanced for beginners.

From speaking with hundreds of traders this past year alone, most traders want simple easy to locate patterns or swing trading stocks strategies that don’t require hours of analysis.

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The 2X Inside Day Short-Term Trading Strategy

One of my favorite day trading techniques is to utilize swing trading or short term trading strategies and reduce the time frame to intra-day once I’m comfortable trading the strategy using longer time frame.

Once I reduce the time frame I then determine if the strategy has promising qualities with the limited intra-day time frame.

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If You Had One Indicator For Trading Technical Analysis What Would It Be?

I participated in a trading webinar this past weekend where I demonstrated a few strategies to about 1,000 traders. The question I got asked the most over and over by at least 20 participants was to provide my favorite indicator for trading technical analysis strategies. My explanation was rather simple; the best indicator is the one that fits the type of market environment that you are currently trading.

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Swing Trading Options Strategies

When I started trading back in the early nighties, my progression was Stocks, Commodities, Index Futures, Stock Options, Forex. By the time I started trading options I already knew enough about the markets and more importantly about risk to make reasonably good trading decisions. But looking back, if I started trading options instead of other markets, I doubt I would have developed the necessary foundation and discipline to succeed with options.

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How To Trade Channel Breakouts

One of the first trading methods I learned was a simple channel breakout. What I like about channel breakouts is they are so simple to learn and it doesn’t take much to identify these channels.

The first thing you need to do is identify a channel. I will use daily charts to demonstrate this but you can apply this to any time frame you prefer. If you are applying it to intra-day charts and want to day trade using this method, that’s great but make sure you enter the trades no later than 1:00 after the opening bell, the reason for this is simple.

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Short Term Trading Strategies – Learn To Use The RSI Indicator

Today I’m going to discuss one of the most popular indicators for short term trading strategies. Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements.

The RSI indicator was invented by  J. Welles Wilder and features RSI in his 1978 book, New Concepts in Technical Trading Systems along with a few other indicators that I will be featuring in the next few weeks

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Four Principles Of Trading Momentum

From Charles Dow, Robert Rhea, and Richard Schabacker – all early pioneers of stock market technical analysis – four driving principles of market dynamics have endured the test of time and still guide technical trading decisions across all time frames.

Each of the following principles can be quantified mathematically and most (if not all) mechanical trading systems are based on at least one principle.

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Technical Trading Strategies – The Tail Gap Strategy Revisited

Those of you who follow my trading videos and this blog know that I’m a big proponent of simple technical trading strategies.

Many traders believe that complex methods are better or have a better winning to losing ratio.

I will tell you from many years of trading that this is simply not true.

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Both The RSI And Stochastic Can Help You Create Profitable Short Term Stock Trading Strategies

I typically receive dozens of emails from traders who are just starting out asking me for help in creating short term stock trading strategies.

A few weeks ago I demonstrated a strategy using the RSI indicator; I received several emails from readers asking me to explain the difference between the RSI Indicator and the Stochastic Indicator.

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Momentum Breakouts: How To Track Volatility With VIX Index

The VIX is calculated using a rather complex formula to derive expected volatility by averaging the weighted prices of out-of-the-money puts and calls. Fortunately, the calculation is performed by the CBOE exchange, so the trader doesn’t have to perform complex mathematical calculations to derive volatility levels manually.

There are two common misconceptions that many beginners options traders have about the VIX index. First, VIX uses both puts as well as calls to calculate it’s value. I’ve stumbled upon several articles and videos over the past few years that forget to mention that calls are involved in the calculation to the same extend as puts.

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The RSI Is One Of The Best Swing Trading Indicators

A few weeks ago, I wrote a short how to article describing how to use swing trading indicators. The one indicator I focused on was the RSI or the Relative Strength Indicator.

After I posted the article I received several questions and comments asking for further examples so that traders could get a better feel for using this method to swing trade stocks. In this tutorial I will outline the steps I go through to apply the divergence method to stocks in more detail.

Continue reading

Best Short Term Trading Strategies – ATR Calculation

The ATR indicator stands for Average True Range, it was one of the handful of indicators that were developed by J. Welles Wilder, and featured in  his 1978 book, New Concepts in Technical Trading Systems.

Although the book was written and published before the computer age, surprisingly it has withstood the test of time and several indicators that were featured in the book remain some of the best and most popular indicators used for short term trading to this day.

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