Most trading books cover trading strategies that use a mix of candlestick patterns, chart patterns, and indicators. While they offer a rounded view of trading methods, they are inadequate for traders who want to focus on trading price action. Indeed, price action trading books are rare finds. After some intense digging and reviewing, we have […]
Capture High Profits with Low Volume Pullback Trading Strategy
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 […]
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 […]
On-Balance Volume Trading Strategy For Fading Dumb Money
What’s the second most important market data after price? One of the key tenet of Dow Theory is that volume confirms the trend. Volume increases when the market moves along with the true market trend. Volume decreases when the market is moving against the trend. Joseph Granville recognized how important volume is for confirming trends and […]
Exhaustion Gap Trading Strategy For Reversals
Imagine waking up to find that your favorite stock has gapped up overnight and given you a windfall profit. Is it time to grab your profits and go? Is it time to reverse your bias and sell short the stock? If the gap is an exhaustion gap, then the answer is probably yes. An exhaustion […]
