Dow Theory relies on volume as a secondary indicator to confirm price action. Nonetheless, interpreting market volume has developed into a whole branch of technical analysis (volume spread analysis) and spurred many traders to create volume indicators. In this review, we will focus on trading low volume pullbacks in trends. Like everything else in trading, absolute […]
Archives for February 2014
Top 10 Day Trading Books
Book retailers and librarians are not traders. They do not understand trading styles (day trading versus swing trading etc). If you are looking for a day trading book bestseller list, you won’t find it anywhere. To fill this gap, we have rounded up the top 10 day trading books using information from Amazon. Book Selection […]
On-Balance Volume (OBV) Analysis of Major ETFs
The on-balance volume (OBV) is an excellent tool for trend analysis. We are applying it on five major exchange-traded funds (ETFs). These ETFs tracks broad asset classes and have reliable volume data, making them ideal candidates for OBV analysis. ETF Primer: Exchange-Traded Funds For Dummies The chart setup is the same for all five ETFs […]
Trading with Kings, Truth, and Bollinger Bands
If you skim through Elaine Knuth’s Trading Between the Lines: Pattern Recognition and Visualization of Markets, you might mistake it for a book on archaeology and meteorology, with a dose of mythology. On a closer look, it is a colorful description of trading methods. The Valley of the Kings and Place of Truth are Egyptian […]
Best Futures For Day Trading
Earlier, I explained why day traders should trade futures. Traders who bought the idea are wondering which market offers the best futures for day trading. Let’s do some work and find out the answer. Learn: Trading Commodities and Financial Futures: A Step-by-Step Guide to Mastering the Markets High Liquidity For Low Slippage Liquidity refers to the […]
9/30 Trading Setups on AET & OMC
The 9/30 trading setup is one of the most popular trading setups we have reviewed. Read: 9/30 Trading Setup These two setups are the conservative version of the strategy which requires the setup bar to move completely below the 9-period exponential moving average. 1. 9/30 Trade Setup on AET The daily chart of Aetna Inc (AET) […]
