TRADINGSIM DAY TRADING BLOG

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.

3 Above the Market Trading Strategies that Work

Buy Stop Order Example

In this article we will cover three basic trading strategies you can use with above the market order types.  You maybe thinking that order types is too negative, but you will be surprised to know that in some trading examples, you are required for example to sell a stock short on a bid up and Read the full article →

3 Techniques for Trading the 52-Week Range

52-Week Range

52 Week Range Definition The 52-week range is a technical indicator, which pinpoints the low and high of a stock during a 52-week period. In other words, you identify the high and low over the past year. This is a 52-week range example. The vertical lines on the chart measure a 1-year period from July, Read the full article →

Day Trading a Short Squeeze | Tradingsim Video Lessons

Short_Squeeze-CWEI

One of the most powerful trading setups is the short squeeze.  A short squeeze occurs when you have a crowded trade on the short side.  Here’s the key with these types of setups.  You want to be able to throw gasoline on the fire.  What do I mean by this?  Well, having a high short Read the full article →

Step-by-Step Guide to Trade the Rounding Bottom Pattern

Rounding Bottom

The rounding bottom pattern is a technical setup for the patient trader.  This is because the pattern can take quite a bit of time to develop before any significant price moves begin. In this article, we will walk you through a step-by-step guide for how to trade the pattern and the key things to look Read the full article →

3 Tips for How to Day Trade Ascending Tops

Ascending Tops

In today’s article, we will cover ascending tops, which is one of the most reliable chart patterns you can leverage when trading bullish price movements. The reason ascending tops are such a predictable pattern is due to the amount of time and price action required to complete the formation – thus increasing their reliability. In Read the full article →

How to Day Trade with the Least Square Moving Average

Least Squares Moving Average

The least square moving average (LSMA) calculates the least squares regression line for the preceding time periods, thus leading to forward projections from the current period. Accordingly, the indicator has the ability to identify what could happen if the regression line continued. Least Squares Moving Average Calculation The indicator is based on sum of least squares Read the full article →

Day Trading Parabolic Stocks | Tradingsim Video Lessons

day-trading-parabolic-stocks-optt

Today, were going to cover another low float parabolic stock, OPTT.  There have been many of these types of trades in the last couple weeks.  See our videos on HMNY and SGY for two additional examples.  Day trading parabolic stocks can be very rewarding if you are patient, but here is the KEY. Lets take a Read the full article →

5 Steps for How to Successfully Counter Trend Trade

Counter Trend Moves

We have discussed many trend trading strategies on the Tradingsim blog. In this article, we will examine the 5 steps for trading counter trends, which consists of impulsive and corrective price moves. What is a Counter Trend Move A counter trend move is a price correction opposite to the primary trend.  This move is generally smaller Read the full article →

Learn how to identify and day trade a bull trap | Tradingsim Video Lessons

valeant-day-trade-bull-trap

I saw a great trade example that I had to share with you guys; we are going to walk through how to day trade a bull trap.  As many of you know, Valeant Pharmaceuticals (VRX) has had a downward death spiral for the past year from over $250 to below $18.  The stock has been Read the full article →

How to Trade the Dead Cat Bounce

Dead Cat Bounce

In this article, we will cover the dead cat bounce pattern, which is often a trap for traders looking to get long. I will do a deep dive into how to trade the pattern and the deadly consequences of timing your entry incorrectly. What is a Dead Cat Bounce? The dead cat bounce is a Read the full article →

Why Do Technical Indicators Fail?

Lagging Indicators

False Signals with Technical Indicators We have discussed many technical indicators on the Tradingsim blog. We have gone through many trading signals and strategies for increasing profit potential. However, nothing in trading is 100% and no one knows for sure the future of price action. After all, if everyone could predict the trajectory of stock Read the full article →

How to Trade with the Hull MA

Hull MA

What is the Hull Moving Average? In addition to the numerous moving averages in the technical analysis realm, the Hull MA is popular amongst some day traders, as the indicator attempts to give an accurate signal by eliminating lags and improving the smoothness of the line. Alan Hull, developed this moving average indicator and hence Read the full article →

Balance of Power – Normal and Hidden Divergences

balance of power

Balance of Power Don Worden created the balance of power (BOP) indicator in the 1950’s to understand market activity between buyers and sellers. Below is a chart of Goldman Sachs Group Inc. (NYSE:GS) with the balance of power displayed below the price action. Now, let’s see how the BOP is calculated. Balance of Power = Read the full article →

How to use the Coppock Curve with other Indicators

Coppock Curve

Coppock Curve Edwin Sedge Coppock, an economist by profession developed the Coppock Curve in 1965, which is a momentum indicator to identify long-term buying opportunities in the S&P 500 and Dow Industrials. Coppock used monthly data to find buying opportunities but did not use the indicator much for sell signals. Now let’s take a look Read the full article →

Day Trading Support and Resistance Levels | Tradingsim Video Lessons

FSLR Support and Resistance levels

Hi Guys, I’ve put a quick video together on a great trade from earlier in the week.  The trade illustrates how you can use key support and resistance levels on the larger timeframe charts (daily, weekly) to get some clues on intraday trading direction.  As day traders, we need to be like detectives and get all Read the full article →

Learn How to Day Trade a Stock with a News Catalyst |Tradingsim Video Lessons

Day Trading HOG on Buyout Rumors

Do you want to learn how to day trade a stock with a news catalyst.  In this example, we are covering a buyout or takeover rumor on HOG: Harley Davidson.  On Friday, July 1, it was rumored that KKR was going to takeover HOG and shares went soaring nearly 25% on the close.  When you see Read the full article →

How to Day Trade with the Know Sure Thing Indicator

Know Sure Thing Indicator

Overview of the KST Indicator The Know Sure Thing (KST) indicator is a two-line indicator similar to the MACD developed by Martin Pring. The oscillator swings above and below zero, and accordingly gives trade signals to traders. Divergence with price and KST also provides signals to traders. If the Know Sure Thing crosses above the Read the full article →

Day Trading High Momentum Stocks | Tradingsim Video Lessons

day trading high momentum stock

The broad stock market made a ferocious recovery off of the BREXIT lows.  It was a broad based market rally that essentially retraced everything that was lost.  As a day trader, I look for high momentum stocks to trade on a daily basis.  This week presented challenges in terms of the number of trades available.  Fortunately, Read the full article →

Day Trading UVXY Against S&P500 | Tradingsim Video Lessons

day trading UVXY

Traders, I noticed an interesting correlation between the UVXY and the price movements in the S&P 500.  Too often, traders are day trading UVXY as a proxy to lever up on movements in the S&P.  This can be detrimental to daytraders even when markets are highly volatile.  It is important to understand when divergences are Read the full article →

3 Simple Donchian Channel Trading Strategies

Donchian Channel

What are Donchian Channels? Richard Donchian created Donchian Channels, which is a type of moving average indicator and a look alike of other support and resistance trading indicators like Bollinger Bands. However, Donchian Channels has a simple plotting of highest high and lowest low of the last “n” periods. The n periods is based on Read the full article →