Welcome to the Tradingsim Blog.  Please browse the various trading categories which cover everything from trading psychology to chart patterns.  Another great resource we offer is our trading simulator which allows you to practice placing trades against real historical tick data.

5 Trading Strategies Using the Relative Vigor Index

Relative Vigor Index

What is the Relative Vigor Index? The Relative Vigor Index (RVI or RVGI) is a technical indicator, which anticipates changes in market trends.  Many day traders consider the RVI a “first cousin” of the Stochastic Oscillator due to the similarities in their formulas (both use the open, close, high and low of each candlestick). Since Read the full article →

5 Ways the True Strength Index Keeps you in Winning Trades

Figure 1: True Strength Index 0 Line Cross Suggests Change in the Momentum

The True Strength Index (TSI) is a technical indicator that was developed by William Blau in the early 1990’s. While there are many applications for the True Strength Index, professional traders use the TSI indicator to gauge the strength of a trend.  The TSI is better suited for trade management instead and not providing entry Read the full article →

TRIX – Standard Momentum Oscillator or Something More?


What is the TRIX indicator? The TRIX indicator is a momentum oscillator, which assists traders by identifying trending markets and price reversals. The TRIX indicator consists of three major components: horizontal zero line. the TRIX itself, which oscillates above and below the zero line. at the right side of the indicator, you are likely to Read the full article →

3 Trading Indicators to Combine with the Klinger Oscillator

Klinger Volume Oscillator

What is the Klinger Volume Oscillator? The Klinger Volume Oscillator (KVO or KO) is a volume-based indicator, which assists traders to identify a longer-term view of price trends.  Since the KVO is a leading indicator (oscillator), it is not a great standalone trading tool. For this reason, traders often combine the KVO with other trading Read the full article →

7 Reasons Day Traders Love the VWAP

Figure 1: Price of AAPL Compared to Its 5-Minute VWAP

If you are wondering what is the VWAP, then wait no more. VWAP stands for Volume Weighted Average Price and is used to identify the true average price of a stock by factoring volume into the equation. Finding the average price based on closing value of a security will not give you an accurate picture Read the full article →

Tricks You Can Use to Successfully Day Trade with the Williams %R Indicator

Figure 1: Comparing Williams %R and (fast) Stochastic Oscillator

If you are interested in short-term trading such as day trading based on technical analysis, then you would have probably heard about the Williams %R indicator. Pronounced as Percent R, the indicator was invented by famous technical analyst and charting enthusiast Larry Williams. The Williams %R is essentially a momentum indicator, which gauges if a Read the full article →

Ease of Movement Indicator (EMV) – The Best Way to Interpret Price Action

EMV Indicator

What is the Ease of Movement Indicator? The Ease of Movement (EMV) is an oscillator, which analyzes the relationship between price and trading volume.  The EMV has an uncanny ability to identify price inefficiencies in the absence of market volume. The EMV is often represented as a curved line, which bounces above and below zero.  Read the full article →

4 Tips for How to Trade Leveraged ETFs with the Directional Movement Index

Figure 1: The Volatility of VelocityShares 3X Long Crude ETN (UWTI) Can Be Very High

Just like regular exchange traded funds, a leveraged ETF can get you exposure to a particular sector, but as the name suggests, it uses built in leverage to maximize or minimize the exposure, depending on the directional movement of the market. Hence, before you endeavor to trade leveraged ETFs, please remember that it can be Read the full article →

4 Simple Ways to Trade with the Volume Weighted Moving Average (VWMA)

VWMA versus SMA

As stated in its name, the volume weighted moving average (VWMA) is similar to the simple moving average; however, the VWMA places more emphasis on the volume recorded for each period.  A period is defined as the time interval preferred by the respective trader (i.e, 5, 15, 30). Therefore, if you place a 20-period simple Read the full article →

Ichimoku Cloud Breakout Trading Strategy – it’s not as complicated as it looks

Intel Price Chart

What is the Ichimoku Cloud? The Ichimoku Cloud, also known as Ichimoku Kino Hyo is a technical indicator, which consists of five moving averages and a “cloud” formed by two of the averages. The default parameters of Ichimoku Cloud are 9, 26, 52, but these parameters are configurable based on the preferences of the trader. Read the full article →

How to Trade with the Money Flow Index


If you have been day trading with price action and volume – two of our favorite tools – then the Money Flow Index (MFI) indicator would not feel alien to you. Once you move pass the fancy name, the money flow technical indicator essentially acts as a momentum oscillator that calculates the volume and price Read the full article →

How to Use the Aroon Indicator in Both Trending and Range Markets

Figure 1: Aroon Up and Aroon Down Lines

The Aroon indicator was developed by Tushar Chande, who also created the Chande Momentum Oscillator and the Qstick. When it comes to day trading, strategies based on the Aroon indicator are some of the best you can apply to make quick profits in the markets. Aroon is one of the handful of technical indicators that Read the full article →

How to use the Parabolic SAR Indicator to identify Day Trading Signals


Would you like to know when the price of the stock you are trading is likely to find support or resistance and about to reverse? Yes? Great! You are in luck that J. Welles Wilder Jr. worked hard to write a book called New Concepts in Technical Trading Systems, where he explicitly introduced a technical Read the full article →

3 Ways to Use a Displaced Moving Average (DMA) in Addition to Your Trading Strategy


What is a Displaced Moving Average? As you have probably noticed, the name “Displaced Moving Average” pretty much contains the answer to this question. The Displaced Moving Average is a regular Simple Moving Average, which is displaced by a certain amount of periods. In other words, displacing a Simple Moving Average means to shift the Read the full article →

Why Professional Traders Prefer Using the Exponential Moving Average


Technical analysis boils down to predicting the future directional movement by studying past market behavior and you would not likely find a better way to assess the market than moving averages. Today, we are going to take a look at how you can use moving averages to analyze any price chart, different types of moving Read the full article →

How to Set Day Trading Profit Targets in a Proper Way

Compound Return

We have all enjoyed it, and later suffered from it. Yes, the experience of placing the first order in the market has been often like the first kiss. You do not know what to expect, yet you believe there is an endless world of opportunity within your grasp. We all start our journey in day Read the full article →

Best Day Trading Chart Indicators

Figure 1: Comparison of a Bullish Move of Apple Inc. on 5-Minute and 15-Minute Chart Time Frame

When you are just starting to take baby steps in trading, usually the first thing you are concerned about is what are the best day trading indicators and chart configuration you should use. Wouldn’t you agree? Well, you should modify the question slightly and try to find what day trading indicators are best for you. Read the full article →

5 Reasons Tick Charts Complicate Trading

comparison of a tick versus 1-minute bar

Most day traders have a love or hate relationship with tick charts. Meaning, either you cannot trade without the tick data, or you absolutely despise the use of tick data as it can complicate making trading decisions. You would think there are some gray areas, but not really. You see, tick charts display a certain Read the full article →

How to Day Trade with Little Money and Keep Your Day Job

Empty Pockets

This article title is sure promising a lot right up front.  Sounds too good to be true right? Well, yes and no.  In this article, I will cover the two blockers that prevent most people from ever getting into day trading – lack of funds and your day job; however, I will also provide the remedy Read the full article →

Simplest Approach for How to Make Money Trading Stocks

money management

Trading stocks is a daunting task and turning a profit trading stocks is even more difficult.  There are literally thousands of books and articles on the web related to trading and the path to riches. Each author has their theories of how best to trade, but how do you make sense of it all.  Well, Read the full article →

Risk and Reward – All that Should Matter to a Trader

reward and risk

Overview of Risk and Reward Trading is not as complicated as everyone would have you to believe.  Successful trading comes down to whether you can turn a profit. Getting to the point where you can consistently land in the black will take some time.  For some of you, you may never reach this point in your Read the full article →

6 Best Price Action Trading Strategies

Long Wick 3

Overview of Price Action Charts If you browse the web, at times it can be difficult to determine if you are looking at a stock charts or hieroglyphics.  When you see a chart with a ton of indicators and trend lines, it is likely a trader trying to overcompensate for a lack of certainty. For Read the full article →

How Much to Invest in Stocks – $10k to $50k

Credit Cards

Wondering how much to invest in stocks?  When you read a number of articles on the web, you will notice the answers you find are somewhat convoluted. Logically the answers center on your long-term and short-term goals.  In addition, the answer will depend on your trading style. Well in this article, I am going to Read the full article →

How to Day Trade with the Elder’s Force Index

length of elder's force index

Overview of Elder’s Force Index (EFI) You can never call Alexander Elder a humble guy as he decided that the best name for his indicator would be that of his own last name. I can however appreciate the fact that Alexander believed in his own analysis so much, that he was willing to associate his Read the full article →

Net Volume Indicator – Should we Care?

net volume indicator

I quite frequently perform research on technical indicators and to be honest, net volume never peaked my interest.  Therefore, I have decided to explore in this article why I am not enamored with the indicator. Unlike other indicators discussed on Tradingsim, net volume is easy to calculate.  If the stock finishes up for the period, then the Read the full article →

How to Trade using the Choppiness Index Indicator

choppiness index inputs

Wouldn’t we all love to know when a stock is trending and when it is in flat territory? Close your eyes for a second and imagine a world where you know on the first tick that the market is starting to trend.  An indicator that would somehow tell you to ignore all of the head fakes Read the full article →

The Definition of a Successful Day Trader


What a loaded question?  Many traders just close their eyes and begin imagining all of the fancy Bugattis they will be buying with all their new found wealth, kudos to you for at least taking the time to perform a search on the web for some answers. Before we go too far in the weeds, I Read the full article →

How to Improve your Trade Entry and Execution

Trading Low

When you review your historical trades, you will notice that given a better entry price, your loser could have actually been a winner.  It’s like anything in life timing is the key. When day trading, you will have the natural inclination to go back and tweak your system, or look to pull in additional indicators to Read the full article →