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 Types of Thrusting Line Candlestick Patterns

Thursting Line Candlestick Pattern

In this article, we will do a deep dive into 3 types of thrusting line candlestick patterns.  We will then explore a few trading examples, so you can apply these techniques in Tradingsim. What is a Thrusting Line Candlestick Pattern? A valid thrusting line pattern starts with a bearish candle on the chart, followed by Read the full article →

5 Reasons Day Traders Love Pivot Points

Pivot Points

Today we will go through the most significant levels in day trading – daily pivot points. When you finish reading this article, you will know the 5 reasons why day traders love using them for entering and exiting positions. Pivot Points Explained Daily pivot points are calculated based on the high, low, and close of Read the full article →

Two Simple Ways to Day Trade Descending Tops

Descending Tops Pattern

What is a Descending Top Pattern? Descending tops develop when the price action produces lower tops between swing lows. As the tops are lowering with each successive move, a bearish trend is forming right before your eyes. Therefore, traders use descending tops to enter short trades. How to Identify a Descending Top Pattern To identify Read the full article →

How to Day Trade the Shooting Star Candlestick Pattern

shooting star candlestick

What is the Shooting Star Candle? The shooting star is a single bearish candlestick pattern that is common in technical analysis. The candle falls into the “hammer” group and is a first cousin of the – hanging man, hammer, and inverted hammer. The shooting star has a small body and a very long upper candle Read the full article →

Three Ways to Trade the Opening Range

Opening Range

The most dynamic and active period of the trading day is the opening range. Since this is the most volatile time frame during the trading day, we believe it deserves special attention from our side. In this article, we will cover three methods for trading the opening range. After reading this material, you will feel Read the full article →

Use Long Term Support and Resistance Levels to Day Trade with an Edge | Tradingsim Video Lessons

sothebys

Guys, this pattern keeps repeating itself over and over again.  If you guys have watched the videos that we have been putting together, you have heard us talk about the importance of longer term support and resistance levels when day trading.  These longer term levels provide significant areas of potential price rejection; meaning long term Read the full article →

Day trading earnings gaps | Tradingsim Video Lessons

GNC-day-trading-earnings-gap

Hi Guys, it’s Kunal from Tradingsim.  Earnings season is here!  This is the period of time where momentum traders do really well as many story stocks tend to move very directionally.  Day trading earnings gaps can seem scary to many of you but in reality, it can be very low risk and very profitable.  When Read the full article →

Should I Sell a Portion or All of My Position?

If you have been trading longer than a few months, you have probably asked yourself this question. I myself have labored over this topic for hours upon hours, yet on the surface it’s such a simple thing. Well by the end of this article, I will give you my perspective on this question and what Read the full article →

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 →