In Day Trading Systems and Methods, Charles Lebeau, the pioneer of Chandelier exit, introduced this S&P day trading strategy from Steve Kane. It uses price action at a higher time-frame to find the trend. Then, it uses %K in the stochastic indicator to find a trade entry along with the trend. Trading Rules – Kane’s […]
Archives for December 2013
The Secret To Using ADX Indicator
You can sum up the secret to using ADX indicator in a single word: SLOPE. Most traders learn that ADX is a robust system that tells you if the market is trending. The typical interpretation is that if ADX is above 25, the market is trending. If ADX is below 25, the market is meandering […]
MACD Hidden Divergence Trading Strategy
Oscillators like RSI, stochastics, and MACD are powerful tools if you know how to use them. Looking out for divergences is a part of using oscillators for trading. Divergence refers to the disagreement between price and the oscillator. Classic divergences are part of a reversal trading strategy. Hidden divergences point to continuation trades. Take a look […]
Two-legged Pullback to Moving Average (M2B, M2S)
Many price action traders claim that two-legged pullbacks are the most reliable trade setups. The variant we are reviewing today is from Al Brooks, who wrote three tomes on price action trading. These three books are not an easy read, but are extremely informative for price action traders. In his books, he identified a two-legged […]
What Can Traders Learn From A Swiss Philosopher
Henri Frédéric Amiel was born in Geneva in 1821. He philosophized, criticized, wrote poems, and died in 1881. I do not know much about him, but recently I saw two of his quotes. These two lines struck me, not only because I agree with them, but also because they are so relevant to trading. I have […]
3 Lesson Plans For The Self-Taught Day Trader
Many day traders, like myself, learn day trading on our own. We learn from free resources, and some trading books that we buy from the bookstore or borrow from the library. This is a cost-effective and exciting way to learn. However, with the myriad of resources out there, you might be at a loss as […]
