Bollinger Bands is a versatile trading indicator that includes a volatility measure. It plots directly over price. Hence, it does not distract us from price action while offering a helpful benchmark. One way to use the Bollinger Bands effectively is to clarify chart patterns. As Bollinger Bands reflect market volatility, they are a good gauge […]
RSI Hidden Divergence Pullback Trading Guide
Divergence strategies? They are for trading reversals, right? Well, not always. In this article, we will focus on its clandestine sibling – the hidden divergence. This less-known occurrence sets the stage for continuation trades and not reversal trades. You can identify both regular and hidden divergences with most trading oscillators. Examples include MACD, Stochastics, and […]
Candlestick Patterns With A Moving Average
Candlestick patterns have little value without the right price action context. If you’ve been studying candlestick formations, you must have heard this principle many times over. You cannot trade patterns in a vacuum. But what do we mean by context? It is an overall technical assessment that encompasses: The market’s trend Support and resistance structure […]
Hikkake Trade Setup
Hikkake means to trap, trick, or ensnare. Dan Chesler discussed this candlestick trading setup in the Active Trader Magazine in April 2004 (“Trading False Moves with the Hikkake pattern”). Primarily, this price pattern seeks to identify inside bar breakouts and profit from their failures. An inside bar is a price bar that is entirely within the […]
Jjrvat’s Price Action Trading Approach
A price action trading approach is not as specific as a setup or strategy. But it is far more useful because it offers market perspectives that will empower you to form your own strategy. In this article, you’ll learn about a scalp trading approach imparted by jjrvat on Elite Trader, a popular trading forum, back in […]
Belt Hold Candlestick Pattern Trading Strategies Guide
The belt hold formation is a unique candlestick pattern. As a single candlestick, it offers one of the most explicit signals of the current market direction. But simply knowing how to identify this pattern is not enough. You’ll also need to learn specific ways to trade it effectively. In this trading guide, you’ll learn to: […]
