An Unconventional View of Trading Volume
|
|
- Dale Godfrey Boone
- 8 years ago
- Views:
Transcription
1 An Unconventional View of Trading Volume With all the talk about the decline in trading volume (over 30% on a year- over- year basis for most of the third quarter) you would think that no one is playing the market. Absolute levels of shares or futures contracts traded, compared to some historical benchmark, have long been used as an indicator of market conviction. Does the trading volume validate the prevailing uptrend or downtrend? Meaning is the trend in price, in any given market, supported by elevated levels of trading activity? This has always been interpreted as a sign of how strongly market participants believe in the move and therefore how reliable it is. More volume = more conviction. In today s market environment it seems to be a misleading indictor as the Dow, S&P, and NASDAQ forge higher on a daily basis without the support of high trading volumes. Does this mean portfolio managers and traders should ignore trading volume as an indicator of future price movements? No, but maybe they should analyze this important data in a very different way. Now some market observers are analyzing how trading volume is distributed over price to see the real supply/demand characteristics of a given market, for a given time frame, regardless of the overall level of activity. The result is a graphic depiction that looks very similar to a histogram, with the exception being the graph is displayed vertically against the y- axis (price) versus horizontally against the x- axis (time).
2 S&P 500: Volume over Price Chart from the August 31 st Lows through today Important support comes in at 1183 as this is the high volume price or mode of the chart since August 31 st. Source: CQG These graphical formations provide a much more comprehensive view of what most market participants would refer to as support and resistance levels. The pictures also shows when a market is transitioning from a range mode to a trend mode (see picture above for an example of a market with a supply/demand imbalance), thus enabling managers to not only make directional and timing adjustments but also prepare for changes in volatility. How do they do it? Using basic math and statistics it is possible to calculate if a market is range bound or has an imbalance that projects a new high or a new low. Analysts simply look at displays of time over price or actual trading volume over price to see if a curve (think bell shaped curve) is balanced or
3 unbalanced. Notice in the picture above how the curve has a clear skew towards the higher prices. Using simple measures of central tendency such as the mid- range of price activity (the high over a given time period plus the low, divided by 2), the high volume price (price level with the most traded volume) and balance point (equal amount of volume above and below a certain price) traders can determine if a market will mean revert or go on to make new highs or new lows. The chart above is unbalanced and tells us the S&P 500 has more upside, potentially as high as 1310, so traders should be looking for places to BUY. When all three measures of central tendency come together the curve is balanced. Notice in the chart of the Oil Services ETF (below) the mid- range, high volume price, and balance point all come in around $
4 HOLDRS- Oil Services (OIH): Volume over Price Chart from the August 31 st Lows through today Fair Value since August 31 st comes in around $ Source: CQG In this scenario traders sell the top tail (top 15% of the curve) and buy the bottom tail (bottom 15% of the curve) and look for a move back to fair value ($118.75). This is when a mean reversion strategy is most effective. When there is a skew in the distribution (the high volume price is above the mid- range, which is bullish, or the high volume price is below the mid- range, which is bearish) traders hold positions with the expectation that a new high or new low will be achieved and disregard a mean reversion strategy.
5 Why is it important to understand this relatively new method of analysis? As the time horizon for holding positions continues to decline, markets become increasingly prone to trading swings generated by chart- based, quantitative, and assorted black box algorithms, not to mention high frequency trading (think Flash Crash for the extreme case). Therefore, it is critical to understand when a market is simply rotating around fair value or if a legitimate new trend is developing. Using actual depictions of trading volume over price as a basis to determine range bound or trending markets as opposed to fundamental or quantitative models proved very useful in 2008 when time and again valuation metrics failed to predict the one way freight train to the March 2009 lows in equity markets around the globe and again missed the turn higher. Using market price action as a guide is not a new concept but the ability to more accurately gauge timing, direction, objectives and incorporate the latest price and volume data to determine the state of the market, balanced (range trading) or unbalanced (trending) is giving market participants a new tool to guide them through the increasingly noisy and unpredictable environment created by so many different strategies with so many different time horizons. This dynamic form of analysis has allowed its adherents to cast off the form fitting caused by an external view of what the market should do versus what it is actually doing. In fact, since early September (when the S&P was trading around 1080/1100) supply/demand analysts have been looking for the S&P 500 to make a move to the 1160/1170 area and then onto 1250/1275 (despite weak levels of overall trading volume, mediocre economic data, and less favorable seasonality). Liquidity is another much sought after goal in any market and here again using graphs of volume distributed over price visually show portfolio managers and traders at what price levels the market is deepest (high volume area) and conversely where a market should trade thin (the tails). This takes the guess work out everything from traders trying to execute daily orders to beat VWAP
6 (Volume Weighted Average Price) or long- term portfolio managers trying to figure out what is fair value in a given stock over the last five years. As this last point implies this tool is not just a short- term intra- day technical indicator but now vendors allow for the volume data to be aggregated over weeks, months, and even years. In essence this allows analysts to peer into the portfolios of the largest commercial money managers in the world because they can actually see at what price levels the largest positions have been established. The data is also available for just about every exchange traded market so the analysis can be completed across asset classes as well as time frames. Given the richer information content embedded in these pictures more market data providers are developing functionalities to allow for this kind of analysis. It is now standard fare on such platforms as Bloomberg and Commodity Quote Graphics (CQG). It is not inconceivable that when an analyst goes to look at a chart 5 to 10 years from now it will not be a traditional bar or candlestick chart but rather a volume over price histogram.
Chapter 3.4. Forex Options
Chapter 3.4 Forex Options 0 Contents FOREX OPTIONS Forex options are the next frontier in forex trading. Forex options give you just what their name suggests: options in your forex trading. If you have
More informationFOREX analysing made easy
FOREX analysing made easy UNDERSTANDING TECHNICAL ANALYSIS An educational tool by Blackwell Global Contents Technical Analysis 2 Line Chart 3 Bar Chart 4 Candlestick Chart 5 Support and Resistance 6 Fibonacci
More informationOne of the primary challenges traders deal with is
TRADING Strategies Momentum trading: Using pre-market trading and range breakouts Focusing on days the market breaks out of the prior day s range and moves in the same direction as the pre-market trend
More informationDefinitions to Basic Technical Analysis Terms. www.recognia.com
Definitions to Basic Technical Analysis Terms www.recognia.com A Alert An alert is a notification sent when a significant event occurs in one or more investments of importance to a trader. Recognia sends
More informationChapter 2.1. Charting Basics
Chapter 2.1 Charting Basics 0 Contents CHARTING BASICS Charts are a forex trader s best friend. As a Forex trader, you will most likely utilize your price charts more than any other available tool. Since
More informationHow to Trade Intra-Day Gold and S&P500 with Low Risk Setups. by Chris Vermeulen
How to Trade Intra-Day Gold and S&P500 with Low Risk Setups by Chris Vermeulen Last week was an incredible week for trading the intraday charts. With rising volume and volatility prices began to move up
More informationCHART TRADING GUIDE 1
CHART TRADING GUIDE 1 How to understand chart trading This guide is designed to teach you the basics of chart trading- the chart patterns that are covered in this booklet can be used for short and medium
More informationInvestors Intelligence Using Point & Figure Charts
Investors Intelligence Using Point & Figure Charts www.investorsintelligence.com, January 2005 Point and figure (p&f) charts provide a simple, yet disciplined method of identifying current or emerging
More informationDynamic Trading Indicators New Techniques for Evolving Markets. Presented by David Stendahl
Dynamic Trading Indicators New Techniques for Evolving Markets Presented by David Stendahl Disclaimer ALL HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW.
More informationChannel Lines. Charts of futures price
File A2-20 April 2005 www.extension.iastate.edu/agdm Charting Commodity Futures Channel Lines. Charts of futures price movements can guide agricultural producers in timing farm marketings and can be of
More informationThe information contained herein is derived from sources we believe to be reliable, but of which we have not independently verified. Forexyard.
STRATEGIES FOR FOREX MARKET PREDICTIONS IN 2011 By: Russel Glaser, Chief Market Analyst: FOREXYARD Date: February 2011 In this Issue: 1. Incorporating Long Term Charts for Market Predictions 2. What is
More informationHow to see the market context using CCI Written by Buzz
How to see the market context using CCI Written by Buzz Towards the end of September 2003, I decided to stop trading the S&P e-mini for a while and focus on the Russell 2000 e-mini. The swings seemed to
More informationTechnical analysis. Course 11
Course 11 Technical analysis Topic 1: Introduction to technical analysis... 3 Topic 2: Chart types... 4 Line charts... 4 Bar chart... 4 Candle stick charts... 5 Topic 3: Trend analysis... 6 Defining an
More informationTable of Contents. Preface. Chapter 1: TRADING BASICS. Chapter 2: BASIC TOOLS. Chapter 3: ADX. Chapter 4: ACCUMULATION LINE
Table of Contents Preface Chapter 1: TRADING BASICS Chapter 2: BASIC TOOLS Chapter 3: ADX Chapter 4: ACCUMULATION LINE Chapter 5: AVERAGE TRUE RANGE Chapter 6: CANDLESTICKS Chapter 7: MACD Chapter 8: MOVING
More informationPattern Recognition and Prediction in Equity Market
Pattern Recognition and Prediction in Equity Market Lang Lang, Kai Wang 1. Introduction In finance, technical analysis is a security analysis discipline used for forecasting the direction of prices through
More informationVisualizations. Cyclical data. Comparison. What would you like to show? Composition. Simple share of total. Relative and absolute differences matter
Visualizations Variable width chart Table or tables with embedded charts Bar chart horizontal Circular area chart per item Many categories Cyclical data Non-cyclical data Single or few categories Many
More informationMy Daily Trading Preparation. Establishing Risk Parameters and Positions
My Daily Trading Preparation Establishing Risk Parameters and Positions My Trading Goals My goals have to be consistent with my trading plan each day. For stocks, I am primarily a long-only trader (and
More informationHigh Probability Trading Triggers for Gold & Silver
Welcome to a CBOT Online Seminar High Probability Trading Triggers for Gold & Silver Presented by: John Person Sponsored by Interactive Brokers Live Presentation Starts at 3:30 PM Chicago Time NOTE: Futures
More informationThinking Man s Trader
Thinking Man s Trader Advanced Trader s Package Trading is a three dimensional world and the Advanced Trader s Package covers all three. Dimension three: Market Dynamics, conditions and change of conditions
More informationChapter 6 - Rahul Mohindar Oscillator System
Chapter 6 - Rahul Mohindar Oscillator System The Rahul Mohindar Oscillator and its associated tools and indicators were developed by Mr. Rahul Mohindar of VIRATECH (viratechindia.com). In addition to being
More informationThe Best Option: Trading Equities at High Speed
The Best Option: Trading Equities at High Speed Chuck Hughes, a former U.S. Air Force and Commercial Airline Pilot, used his downtime to learn how to trade stock indexes with systems. He liked system trading
More informationIntra-Day Trading Techniques. Pristine.com Presents. Greg Capra. book, Tools and Tactics for the Master Day Trader
Pristine.com Presents Intra-Day Trading Techniques With Greg Capra Co-Founder of Pristine.com, and Co-Author of the best selling book, Tools and Tactics for the Master Day Trader Copyright 2001, Pristine
More informationTrendline Tips And Tricks
Tantalizing! Trendline Tips And Tricks How do you capture those medium- to longer-term moves when trying to enter and exit trades quickly? D by Sylvain Vervoort aydreaming about trading? Get in a trade
More informationContrarian investing and why it works
Contrarian investing and why it works Definition Contrarian a trader whose reasons for making trade decisions are based on logic and analysis and not on emotional reaction. What is a contrarian? A Contrarian
More informationThe Logic Of Pivot Trading
Stocks & Commodities V. 6: (46-50): The Logic Of Pivot Trading by Jim White This methodology takes advantage of the short-term trends in the market and applies a pivot trading technique to earn superior
More informationUSING CANDLESTICK CHARTS TO TRADE FOREX
CONTENTS Disclaimer Introduction Candlestick Chart Origins Candlestick Chart Definition Single Candlestick Patterns Multiple Candlestick Chart Patterns Two Candlestick Pattern Formations Three Candlestick
More informationClass 2: Buying Stock & Intro to Charting. Buying Stock
Class 2: Buying Stock & Intro to Charting Today s Class Buying Stock Intro to Charting Real World Analysis Buying Stock What Is a Stock? Share of ownership in a company Publicly traded Holds monetary value
More informationHow To Use A Japanese Roenko Chart To Create A Trading Strategy
TIPS. 10 SKYSCRAPER. Menara Carigali, Kuala Lumpur. The todays third tallest building in Malaysia on the scale of 267 metres high. 1/ 3 ALGORITHMIC TRADING WITH RENKO CHARTS. PART 1: How to define trend
More information27PercentWeekly. By Ryan Jones. Part II in the Series Start Small and Retire Early Trading Weekly Options
By Ryan Jones Part II in the Series Start Small and Retire Early Trading Weekly Options Important My 27% Option Strategy is one of the best option trading opportunities you will come across. When you see
More informationActive Trend Trading System
Active Trend Trading System Candle Light Trader: Dennis W. Wilborn A Trend Should Be Assumed to Continue in Effect Until Such Time as Its Reversal Has Been Definitely Signaled Edwards & Magee Disclaimer
More informationAPPLICATION PLATFORMS:
APPLICATION PLATFORMS: FIRST CHARTING WEB FIRST CHARTING DESK FIRST CHARTING MOBILE WE PROVIDE: NSE CHARTING APP MCX CHARTING APP BOTH MCX/NSE CHART APP PROFESSIONAL TECHNICAL ANALYSIS CHARTING TOOLS:
More informationAs a professional floor trader at the Chicago Board of Figure 1 Trade, I have studied many trading
Article Text Copyright (c) Technical Analysis Inc. 1 Stocks & Commodities V. 4:5 (194-197): A mechanical trading system by William F. Eng A mechanical trading system by William F. Eng As a professional
More informationProfessional Trader Series: Moving Average Formula & Strategy Guide. by John Person
Professional Trader Series: Moving Average Formula & Strategy Guide by John Person MOVING AVERAGE FORMULAS & STRATEGY GUIDE In an online seminar conducted for the Chicago Board of Trade, I shared how to
More informationCOMPARATIVE ANALYSIS BETWEEN THE FUNDAMENTAL AND TECHNICAL ANALYSIS OF STOCKS
COMPARATIVE ANALYSIS BETWEEN THE FUNDAMENTAL AND TECHNICAL ANALYSIS OF STOCKS Prof. Nada Petrusheva Ph.D FON University Skopje, Republic of Macedonia natka.petrusheva@fon.edu.mk Igor Jordanoski, MSc FON
More informationA Day Trader Search for Profits Written By: John L. Person, CTA www.nationalfutures.com
Buy low sell high, buy high and sell higher or sell low and buy lower. Whatever your method is, the results need to be profitable or a trader s career will be cut short. Most investors, whether that is
More informationToms Market Outlook and Trade Alerts for Oct 19 th, 2014. Message from Tom
Toms Market Outlook and Trade Alerts for Oct 19 th, 2014 Message from Tom I believe the markets have finally cooled their selling ways, partly due to the fact that Ebola is not a concern like people thought
More information8 Day Intensive Course Lesson 3
8 Day Intensive Course Lesson 3 A) What are Fibonacci Retracements? Fibonacci Retracements What are Fibonacci retracements? Levels at which the market is expected to retrace to after a strong trend. Based
More informationSP500 September 2011 Outlook
SP500 September 2011 Outlook This document is designed to provide the trader and investor of the Standard and Poor s 500 with an overview of the seasonal tendency as well as the current cyclic pattern
More informationThe NYSE Tick Index And Candlesticks
INDICATORS The NYSE Tick Index And Candlesticks The tick index may appear to be one of the simplest of market indicators, but it also offers insight into market psychology. As a stand-alone indicator,
More informationI Really Trade. Trading Patterns for Stocks & Commodities. Introducing The False Break Buy and Sell Pattern
2008 Trading Patterns for Stocks & Commodities It doesn t matter if you are a longterm investor, short swing trader or day trader, you are always looking for an advantageous spot to enter your position.
More informationIdentifying Short Term Market Turns Using Neural Networks and Genetic Algorithms
Identifying Short Term Market Turns Using Neural Networks and Genetic Algorithms Donn S. Fishbein, MD, PhD Neuroquant.com On March 26, 2008, in the Wall Street Journal page one article Stocks Tarnished
More informationWhat You Don t Know About Candlesticks
Researching candlesticks yields some surprises. In When Candles Work Best What You Don t Know About Candlesticks by Thomas N. Bulkowski writing my latest book, Encyclopedia Of Candlestick Charts, I made
More informationUnderstanding the market
Understanding the market Technical Analysis Approach: part I Xiaoguang Wang President, Purdue Quantitative Finance Club PhD Candidate, Department of Statistics Purdue University wang913@purdue.edu Outline
More informationBlack Box Trend Following Lifting the Veil
AlphaQuest CTA Research Series #1 The goal of this research series is to demystify specific black box CTA trend following strategies and to analyze their characteristics both as a stand-alone product as
More informationA.R.T Core Portfolio Trading Plan June 2015
A.R.T Core Portfolio Trading Plan June 2015 ABSOLUTE RETURN TRADING PTY LTD ACN 603 186 634 Trading ASX Equities Long/Short using CFDS CFDs are a very powerful and effective tool if used correctly. Using
More informationTrend Determination - a Quick, Accurate, & Effective Methodology
Trend Determination - a Quick, Accurate, & Effective Methodology By; John Hayden Over the years, friends who are traders have often asked me how I can quickly determine a trend when looking at a chart.
More informationMethods to Trade Forex Successfully for Quick Profits
Methods to Trade Forex Successfully for Quick Profits This article is devoted to the techniques that are used to trade Forex on an intraday basis for quick profits. The aim is to make the trading a successful
More informationINVESTING & TRADING WITH THE JSE PRICE/EARNINGS (P/E) RATIO
INVESTING & TRADING WITH THE JSE PRICE/EARNINGS (P/E) RATIO "At the end of the day, all stock price movements can be traced back to earnings." Page 1 INTRODUCTION This e-book shows how to use the daily
More informationJUST SIT BACK AND LET THE GIRTH MODEL MAKE MONEY FOR YOU. Elham Negahdary
Electronic Proceedings of Undergraduate Mathematics Day 4 2010 No. 2, 1 6; http://academic.udayton.edu/epumd/ JUST SIT BACK AND LET THE GIRTH MODEL MAKE MONEY FOR YOU Elham Negahdary Department of Mathematics,
More informationTechnical Indicators Explained
Chapter I. Technical Indicators Explained In This Chapter The information in this chapter is provided to help you learn how to use the technical indicators that are available for charting on the AIQ TradingExpert
More informationDoes trend following work on stocks? Part II
Does trend following work on stocks? Part II Trend following involves selling or avoiding assets that are declining in value, buying or holding assets that are rising in value, and actively managing the
More informationChapter 2.3. Technical Analysis: Technical Indicators
Chapter 2.3 Technical Analysis: Technical Indicators 0 TECHNICAL ANALYSIS: TECHNICAL INDICATORS Charts always have a story to tell. However, from time to time those charts may be speaking a language you
More informationGolden Penny Stock Millionaires Golden Market Secrets For Trading Penny Stocks:
Golden Penny Stock Millionaires Golden Market Secrets For Trading Penny Stocks: Introduction: Greetings; Hey, I m William Bell, stock analyst with the Golden Penny Stock Millionaires Financial Trading
More information3 POWERFUL FOREX PRICE PATTERNS
3 POWERFUL FOREX PRICE PATTERNS RANGE PRICE ACTION Defined To Interpret what the OPEN, HIGH, LOW, and CLOSE did on a Particular Bar and compare that criteria to the Previous Price Bar s Action, in order
More informationFutures Trading Based on Market Profile Day Timeframe Structures
Futures Trading Based on Market Profile Day Timeframe Structures JAN FIRICH Department of Finance and Accounting, Faculty of Management and Economics Tomas Bata University in Zlin Mostni 5139, 760 01 Zlin
More informationThe Trend-Checker has been designed to inform you at a glance how major currencies are behaving against one another.
User's guide Please also open the user's interface (reference numbers) in order to fully understand this simple two parts guide, basics and the unique FDbar complement feature. Welcome to the Trend-Checker!
More informationHow to time the stock market Using Artificial Neural Networks and Genetic Algorithms
How to time the stock market Using Artificial Neural Networks and Genetic Algorithms Donn S. Fishbein, MD, PhD Neuroquant.com ABSTRACT Despite considerable bad press that market timing has received in
More informationThe Art of Ichimoku. By James Stanley Trading Coach DailyFX EDU instructor@dailyfx.com
1 The Art of Ichimoku By James Stanley Trading Coach DailyFX EDU instructor@dailyfx.com This information is provided to you for educational purposes only. This article does not suggest that you will experience
More informationA STUDY ON FUNDAMENTAL AND TECHNICAL ANALYSIS
A STUDY ON FUNDAMENTAL AND TECHNICAL ANALYSIS MR. SURESH A.S ASSISTANT PROFESSOR, MBA DEPARTMENT, PES INSTITUTE OF TECHNOLOGY, BANGALORE SOUTH CAMPUS, 1KM BEFORE ELECTRONIC CITY, HOSUR ROAD, BANGALORE
More information22Most Common. Mistakes You Must Avoid When Investing in Stocks! FREE e-book
22Most Common Mistakes You Must Avoid When Investing in s Keep the cost of your learning curve down Respect fundamental principles of successful investors. You Must Avoid When Investing in s Mistake No.
More informationTechnical Analysis SAmple InveSTIng plans 1
Technical Analysis Sample Investing Plans 1 Important Information All investing plans and rules are provided for informational purposes only, and should not be considered a recommendation of any security,
More informationA Primer On Technical Analysis. Written by. Available at
A Primer On Technical Analysis Written by Available at Page 1 of 23 Overview Technical Analysis (Versus Fundamental Analysis) Technical analysis is a method of forecasting price movements by looking at
More informationCYCLE TIMING CAN IMPROVE YOUR TIMING PERFORMANCE by Walter Bressert, CTA
CYCLE TIMING CAN IMPROVE YOUR TIMING PERFORMANCE by Walter Bressert, CTA The HOLY GRAIL OF TRADING is: Trade with the trend; if up, buy the dips; if down, sell the rallies. With cycles you can identify
More informationEquity Basics: Introduction
Equity Basics: Introduction Over the last few decades, the average person's interest in the equity market has grown exponentially. This demand coupled with advances in trading technology has opened up
More information292 INDEX. Growth and income style of trading, 12 13 winning strategies (see Winning growth and income strategies)
Index Aggressive growth strategies, 56 70 all-cap growth, 61 63 call options, 274 first profit, 68 70 generally, 11 market capitalization study, 65 methodology, 56 59, 61 62, 67, 69 70 1-week rebalance
More informationUsing Currency Futures to Hedge Currency Risk
Using Currency Futures to Hedge Currency Risk By Sayee Srinivasan & Steven Youngren Product Research & Development Chicago Mercantile Exchange Inc. Introduction Investment professionals face a tough climate.
More informationGuidelines to use with Fibonacciqueen trade setups!!!
Guidelines to use with Fibonacciqueen trade setups!!! Updated January 2014 As far as the price analysis that I run every day in the markets, there are three different types of Fibonacci price relationships
More informationInterpreting Data in Normal Distributions
Interpreting Data in Normal Distributions This curve is kind of a big deal. It shows the distribution of a set of test scores, the results of rolling a die a million times, the heights of people on Earth,
More informationUnderstanding the Equity Summary Score Methodology
Understanding the Equity Summary Score Methodology Provided By Understanding the Equity Summary Score Methodology The Equity Summary Score provides a consolidated view of the ratings from a number of independent
More informationToday the ROAR of the S&P pit is gone but long after electronic trading took over the rules continue to be a vital part of our trading tool box
MRTOPSTEP E-BOOK; RULES OF THE ROAD Getting Started Trading Rules 101 Trading Rules 101 is a combination of patterns and observations from the trading floors of the Chicago Board of Trade and the Chicago
More informationTS Model Growth Portfolios
M A R K E T S C O M M O D I T I E S - C U R R E N C I E S TS Model Growth Portfolios : Q1 outlook Overview: Q1 is unfolding with minor volatility. January was a negative month on both the TSX and the benchmark
More informationRetracement Or Reversal. Kennsei Trading, Inc. Chief Trader Dinger dinger@kennseitrading.com www.hotstocksforincome.com
Retracement Or Reversal Kennsei Trading, Inc. Chief Trader Dinger dinger@kennseitrading.com www.hotstocksforincome.com Retracement Or Reversal Most of us have wondered, at some point, whether a decline
More informationEvery trader has had the experience of selling a stock or commodity too soon during a rapid price
Article Text Copyright (c) Technical Analysis Inc. 1 Stocks & Commodities V. 9:10 (403-408): Trading The Regression Channel by Gilbert Raff Trading The Regression Channel by Gilbert Raff Every trader has
More informationCommando Trading Software Executive Summary
Commando Trading Software Executive Summary Commando trading software combines the latest advances in neural pattern recognition technology with our proven trading methodology to make trading much more
More informationStatistics Revision Sheet Question 6 of Paper 2
Statistics Revision Sheet Question 6 of Paper The Statistics question is concerned mainly with the following terms. The Mean and the Median and are two ways of measuring the average. sumof values no. of
More informationADX breakout scanning ADX breakouts can signal momentum setups as well as exit conditions for intraday and swing traders. FIGURE 1: AFTER ADX > 40
TRADING STRATEGIES ADX breakout scanning ADX breakouts can signal momentum setups as well as exit conditions for intraday and swing traders. BY KEN CALHOUN FIGURE 1: AFTER ADX > 40 Spotting volatility
More informationWhether you re new to trading or an experienced investor, listed stock
Chapter 1 Options Trading and Investing In This Chapter Developing an appreciation for options Using option analysis with any market approach Focusing on limiting risk Capitalizing on advanced techniques
More information6. Get Top Trading Signals with the RSI
INTERMEDIATE 6. Get Top Trading Signals with the RSI The Relative Strength Index, or RSI, is one of the most popular momentum indicators in technical analysis. The RSI is an oscillator that moves between
More informationptions 3 simplesteps Quick Start Guide
ptions 3 simple steps Quick Star tg de ui Welcome to OptionsPro The sophisticated OptionsPro platform integrates seamlessly with the power and performance of the VectorVest system to help you quickly and
More informationFour Amazing Day Trading Set-Ups To Boost Your Trading
Four Amazing Day Trading Set-Ups To Boost Your Trading By Rob Mitchell When trading in today's markets it is not always clear what is going on. This is especially true if you organize your charts in a
More informationThe Secret to Day Trading How to Use Multiple Time Frames for Pinpoint Entry and Exit Points
The Secret to Day Trading How to Use Multiple Time Frames for Pinpoint Entry and Exit Points Now I m not going to advocate day trading. That isn t what this report is about. But there are some principles
More informationFuzzy Candlestick Approach to Trade S&P CNX NIFTY 50 Index using Engulfing Patterns
Fuzzy Candlestick Approach to Trade S&P CNX NIFTY 50 Index using Engulfing Patterns Partha Roy 1, Sanjay Sharma 2 and M. K. Kowar 3 1 Department of Computer Sc. & Engineering 2 Department of Applied Mathematics
More informationIntra-Day Trading Techniques
Pristine.com Presents Intra-Day Trading Techniques With Greg Capra Co-Founder of Pristine.com, and Co-Author of the best selling book, Tools and Tactics for the Master Day Trader Copyright 2001, Pristine
More informationCrestmont Research. Volatility In Perspective By Ed Easterling January 6, 2015 (updated) All Rights Reserved
Crestmont Research Volatility In Perspective By Ed Easterling January 6, 2015 (updated) All Rights Reserved Who or what is rocking the boat? Is the current level of volatility normal or is it extreme in
More informationCommitment of Traders How to Follow the Professionals
Commitment of Traders How to Follow the Professionals It's not the Holy Grail but the Commitment of Traders report gives an insight into valuations and what levels the Professionals consider over-bought
More informationHow to find the big winners in the stock market.
How to find the big winners in the stock market. Big Winners = Stocks in the positive right-hand tail of the distribution of returns Distribution of returns Normal vs. Fat Tails Theoretical distribution
More informationOption Basics: A Crash Course in Option Mechanics
1 chapter # 1 Option Basics: A Crash Course in Option Mechanics The concept of options has been around for a long time. Ancient Romans, Greeks, and Phoenicians traded options based on outgoing cargoes
More informationTrading Systems Series
Trading Systems Series HOW DO I TRADE STOCKS.COM Copyright 2011 10 Trading Systems Series 10 TIMES YOUR MONEY IN 30 TRADES THE 4% SWING SYSTEM 30 4% This report will outline a simple 5 min a week strategy
More informationMastering the Markets
www.mastermindtraders.com Presents Mastering the Markets Your Path to Financial Freedom DISCLAIMER Neither MasterMind Traders or any of its personnel are registered broker-dealers or investment advisors.
More informationTiming the Trade How to Buy Right before a Huge Price Advance
Timing the Trade How to Buy Right before a Huge Price Advance By now you should have read my first two ebooks and learned about the life cycle of a market, stock, or ETF, and discovered the best indicators
More information1 Directional Trading Strategies
Brunel University Msc., EC5504, Financial Engineering Prof Menelaos Karanasos Lecture Notes: Directional Trading Strategies 1 Directional Trading Strategies With options you can pro t from correctly predicting
More informationTRADING SECRET NO. 3 How to combine two simple tools to capture big trending moves, especially in currencies
TRADING SECRET NO. 3 How to combine two simple tools to capture big trending moves, especially in currencies 25 Currencies have a reputation for being markets that trend well. And, every business day over
More informationSwing Trade Warrior Chapter 4. Fundamentals & Technicals What You Need to Know! One is not more right than the other, but they both DO matter when swing trading, and can even matter when day trading (think
More informationLIVE@ W O R K B O O K
LIVE @ W O R K B O O K SHORT SKIRT TRADING The Most Bang for the Buck in the Least Amount of Time. By Linda Raschke COVERING: INDICES, DAY TRADING AND MONEY MANAGEMENT Linda will teach the "Short Skirt"
More informationAccounting for Derivatives. Rajan Chari Senior Manager rchari@deloitte.com
Accounting for Derivatives Rajan Chari Senior Manager rchari@deloitte.com October 3, 2005 Derivative Instruments to be Discussed Futures Forwards Options Swaps Copyright 2004 Deloitte Development LLC.
More informationHow To Know When A Market Is In A Strong Trending Phase
The 3 Rules of Successful Swing Trading Trade with the Wind at Your Back The Rule That Hits Home Runs & Be In the Right Place at the Right Time by Michele Mish Schneider, Director of Trading Research &
More informationBinary Options Trading Strategy. Professional Binary Trading Manual Strategy
Binary Options Trading Strategy Professional Binary Trading Manual Strategy U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards,
More informationSeasonality COVER. F1) Seasonal Trend in Heating Oil Price F2) Construction of a Seasonal Chart
COVER Seasonality The seasons are a big influential factor in the commodities and financial markets. They influence the probability of price movement, whilst working in the background often unobserved.
More informationPairs Trading STRATEGIES
Pairs Trading Pairs trading refers to opposite positions in two different stocks or indices, that is, a long (bullish) position in one stock and another short (bearish) position in another stock. The objective
More informationThe Golden Nugget That Makes Traders Wealthy Trading. AAPL, RIMM And Gold Stocks. The Four Stages of Stocks
The Golden Nugget That Makes Traders Wealthy Trading AAPL, RIMM And Gold Stocks I know most Apple enthusiasts will be rolling their eyes with my analysis and that s fine because the rest of us need people
More information