In this article, you will learn the three fundamental principles of technical analysis. 1st Principle – Market discounts everything. Everything includes news, facts, data, emotions, and expectations. Everyone (including the fundamental analyst) ponders over each piece of information to make only one decision: to buy or to sell. This single decision affects price and volume. […]
Why You Must Have An Initial Stop Loss?
A stop-loss order is a trade order to close your position when the market moves against you. Some traders don’t believe in using stop losses. These traders have been stopped out right before watching the price move in their favor again. They remember these painful experiences. They remember them too well. As a result, they believe […]
Inside Day NR4 (ID/NR4)
Toby Crabel did some serious work on volatility patterns in price movement. The Inside Day/NR4 (ID/NR4) is one of the patterns he wrote in “Day Trading with Short Term Price Patterns and Opening Range Breakout“. An inside day is one with a lower high and higher low than the previous bar. NR4 is a bar with the narrowest […]
9/30 Trading Setup
9/30 trading setup is by Mike Bruns on Trading Naked (now defunct), a site with lots of trading wisdom. Highly recommended. In fact, TradingNaked inspired this collection of trade setups. Trading Rules – 9/30 Trading Setups This trading setup uses two moving averages: the 9-period exponential moving average (EMA) and the 30-period weighted moving average (WMA). […]
The Holy Grail Trading Setup
The Holy Grail is, of course, not the Holy Grail. Linda Bradford Raschke and Larry Connors named it so for its simplicity. As both of them are prominent traders, this trading strategy is hugely popular. ADX Lovers: Day Trading, Range Trading Trading Rules For The Holy Grail Rules For Long 14-period ADX is initially above […]
Moving Average Fake-Out
Mark Fisher introduced the moving average fake-out trading setup in his book, “The Logical Trader“. This trading strategy uses moving averages to find false counter-trend moves (fake-outs). As Mark Fisher mentioned, you can use this concept to enter a trading position or a trading bias. The moving averages in this strategy do not use the […]
