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 →

How to Use the Average True Range Indicator

Average True Range

Average True Range Trading StrategiesHey, day traders this is Al Hill from Tradingsim.com. Let me just say off the bat that I’m a little under the weather but please do not let that give the indication that I am not excited about the video that I am going to talk through today. So, we are Read the full article →

Advance Decline Ratio – Ratio of Advancing Issues to Declining Issues

advancing-declining-issues

Advance Decline Ratio Definition The advance/decline ratio (A/D ratio) shows the ratio of advancing issues to declining issues. The A/D ratio is similar to the advance/decline line, except instead of subtracting the advancing and declining issues, it divides these two inputs. The benefit of using the advance/decline ratio is that it is a constant number, Read the full article →

Tick Index – Identify Intraday Market Extremes

tick

What is the Tick Index? The tick index measures the very short term health of the markets by taking the difference between the number of stocks on an uptick and the number of stocks on a downtick.  The Tick index sums up this difference for all stocks in the New York Stock Exchange.  For example, Read the full article →

4 Simple Volume Trading Strategies

Volume

Why is Volume Important? Volume analysis is the technique of assessing the health of a trend, based on volume activity. Volume is one of the oldest day trading indicators in the market.  I would dare to say the volume indicator is the most popular indicator used by market technicians as well.  Trading platforms may not Read the full article →

Broad Market Indicators for Day Trading

Day Trading Indicators Day trading on any timeframe chart requires the knowledge of how the general market is behaving.  You want to make sure that all boats are sailing in the same direction to give your trade better odds of working.  To do this, a trader should keep an eye on a few key day Read the full article →

Bollinger Bands

bollinger-bands

Odds are you have landed on this page in search of bollinger band trading strategies, secrets, best bands to use or my favorite – the art of the bollinger band squeeze.  Before you skip down to the section titled bollinger band trading strategies which covers all these topics and more; let me impart two additional Read the full article →

4 Simple Slow Stochastics Trading Strategies

slow-stochastic1

Slow Stochastic Definition The slow stochastic indicator is a price oscillator that compares a security’s closing price over “n” range. The most commonly used range for the slow stochastic indicator is 14. The slow stochastic formula is calculated as follows: To calculate the slow stochastic, replace “n” with the range your are monitoring. If you Read the full article →

Fibonacci Trading

Fibonacci ratios, when applied to trading stocks, correlate two trends; let’s refer to them as primary and secondary.  The primary trend refers to a trending move in one direction while the secondary trend will refer to counter trend moves in the opposite direction.  The three most common fibonacci retracement levels are 38.2%, 50%, and 61.8% Read the full article →

Trade Volume Index (TVI) – Technical Indicator

Trade Volume Index Definition The trade volume index (TVI) detects whether a security is being bought or sold based on tick data.  The TVI provides a trader more insight into the amount of buying and selling for a security.  It tracks the total volume that occurs at the bid and ask.  So, if the trade volume Read the full article →

Best Day Trading Chart Indicators

One of the most frequent questions I receive revolves around the indicator and chart configuration I use while day trading.  What I am about to discuss is only my preferred setup; you will have to experiment to see what works best for you.  I am hoping that this discussion will guide you down the right Read the full article →

Level II Quotes – Primary Tool for Active Traders

symbol-data1

Level II Quotes The Level II quote window provides the data for pending orders in the market. It displays the size of the best bid and offers with their respective depths. Day traders use level II to gauge the direction of the stock market over the short-term. This article will discuss the working parts of Read the full article →

Tick Charts – Tool for Active Traders

Tick Charts Definition Tick charts display a certain number of trades before printing a new bar chart.  Unlike other charts which are based on time, tick charts are solely based on trading activity.  Tick charts are a favorite for day traders who need to make quick trading decisions and do not have the time to Read the full article →

Tape Reading (Time and Sales Window)

Reading the tape is one of the essential indicators when active trading.  Many traders know about the hundreds of indicators readily available on most trading platforms, but very few have an idea of how to read and interpret the tape.  Interpret is really the best way of describing how you need to approach your relationship Read the full article →