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 →

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 →

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 Little Money and Keep Your Day Job

Empty Pockets

This article title is sure promising a lot right up front.  Sounds too good to be true right? Well, yes and no.  In this article, I will cover the two blockers that prevent most people from ever getting into day trading – lack of funds and your day job; however, I will also provide the remedy Read the full article →

Simplest Approach for How to Make Money Trading Stocks

money management

Trading stocks is a daunting task and turning a profit trading stocks is even more difficult.  There are literally thousands of books and articles on the web related to trading and the path to riches. Each author has their theories of how best to trade, but how do you make sense of it all.  Well, Read the full article →

6 Best Price Action Trading Strategies

Long Wick 3

Overview of Price Action Charts If you browse the web, at times it can be difficult to determine if you are looking at a stock charts or hieroglyphics.  When you see a chart with a ton of indicators and trend lines, it is likely a trader trying to overcompensate for a lack of certainty. For 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 →

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 →

How to Improve your Trade Entry and Execution

Trading Low

When you review your historical trades, you will notice that given a better entry price, your loser could have actually been a winner.  It’s like anything in life timing is the key. When day trading, you will have the natural inclination to go back and tweak your system, or look to pull in additional indicators to Read the full article →

3 Strategies for Trading Flags and Pennants

US Flag

Flags and pennants are foundational chart patterns of technical analysis.  What I mean by this is most technical traders have heard of the patterns, as these are easy to recognize.  Most of the trading strategies documented for flags and pennants are straightforward and somewhat boring to be honest. In this article, I plan to challenge the 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 →

5 Reasons I Use Stop Limit Orders to Enter Trades

Stop Limit Order

I exclusively use stop limit orders to enter day trades.  This is because I trade breakout strategies and I like to wait for the price to exceed the most recent high or low. In this article, I will cover the 5 Reasons stop limit orders have helped improve my trading.  Before we get into the Read the full article →

6 Reasons Not to Trade During the First 30 Minutes


The first 30 minutes is the most volatile time in the equities market. As a new or even seasoned trader, you will gravitate to the first 30 minute slot like a moth to a flame. It really comes down to the level of action present in the market early in the day, which keeps us all Read the full article →

How to Measure Your Trading Performance

Trading Performance Graph

Trading performance is something that I have personally been studying for over 15 years.  It’s one of those topics that many traders either avoid or spend little time researching.  Most traders, simply think of performance in terms of dollars made and loss. The bottom-line in terms of dollars is always the ultimate score; however, along Read the full article →

5 Benefits of Day Trading without Margin


As I say day trading without margin aloud, it is almost as if I am taking all the fun and excitement out of trading.  I would compare it to riding a super charged Harley with a helmet. The trading business tends to reward and revere those of us that have an ability to take on Read the full article →