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 →

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


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


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


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 →