5 Tips for How to Trade with the 200-Day Simple Moving Average

Price and Moving Averages

The moving average is one of the most widely used indicators in all of trading. There are different types of moving averages based on calculation method and duration (periods). Today we will discuss one of the most popular of all moving averages – the 200-day moving average. We will describe its structure and 5 tips 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 →

5 Trading Strategies Using the MACD

MACD Indicator

Are you an indicator trader? If yes, then you will enjoy reading about one of the most widely used trading tools – the moving average convergence divergence (MACD). Today, we will cover 5 trading strategies using the indicator and how you can implement these methodologies within your own trading systems. What is the MACD? The MACD Read the full article →

Alligator Indicator versus the Triple EMA

Alligator Indicator

If you are a fan of trading with moving averages and unfamiliar with the alligator indicator, get ready for a pleasant surprise.   In this article, we are going to do a head-to-head comparison of the Alligator indicator with the triple EMA (TEMA) to see which one comes out on top. What is the Alligator indicator? Read the full article →

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 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 →

5 Examples of Keltner Channels versus Bollinger Bands

Keltner Channel Inputs

I am a self-proclaimed ATR fanatic, yet I have not explored Keltner Channels.  The Keltner Channel is a lagging on-chart indicator that uses a combination of exponential moving averages and the Average True Range (ATR) as inputs.  Unlike Bollinger Bands, which uses standard deviations to calculate the width of the channel, Keltner Channels uses the Read the full article →

Top 4 Awesome Oscillator Day Trading Strategies

Awesome Oscillator

I don’t know about you, but what was Bill Williams thinking when he came up with the name awesome oscillator? With names floating around as complex and diverse as moving average convergence divergence and slow stochastics, I guess Bill was attempting to separate himself from the fray.  To learn more about the awesome oscillator from Read the full article →

4 Strategies for How to Use the Volume Oscillator

Volume Oscillator and Choppy Markets

Fans of the Tradingsim blog know that I am big on volume.  Volume is probably one of the oldest off chart technical indicators you will find in technical analysis.  So, as I’m looking through the technical indicators I have been intrigued by the possible uses of the volume oscillator indicator. The volume oscillator displays the Read the full article →