Golden Cross – 3 Simple Strategies for Trading the Pattern

Golden Cross

If you are a fan of the moving averages, then you will definitely enjoy reading this article. Today we will discuss one of the most important patterns related to moving averages – the golden cross (GS). What is a Golden Cross in Trading? A golden cross in trading occurs when a faster moving average crosses Read the full article →

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 →

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 →

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 →

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 →

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 →

Balance of Power – Normal and Hidden Divergences

balance of power

Balance of Power Don Worden created the balance of power (BOP) indicator in the 1950’s to understand market activity between buyers and sellers. Below is a chart of Goldman Sachs Group Inc. (NYSE:GS) with the balance of power displayed below the price action. Now, let’s see how the BOP is calculated. Balance of Power = 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 →

How to Day Trade with the Know Sure Thing Indicator

Know Sure Thing Indicator

Overview of the KST Indicator The Know Sure Thing (KST) indicator is a two-line indicator similar to the MACD developed by Martin Pring. The oscillator swings above and below zero, and accordingly gives trade signals to traders. Divergence with price and KST also provides signals to traders. If the Know Sure Thing crosses above the Read the full article →

Day Trading High Momentum Stocks | Tradingsim Video Lessons

day trading high momentum stock

The broad stock market made a ferocious recovery off of the BREXIT lows.  It was a broad based market rally that essentially retraced everything that was lost.  As a day trader, I look for high momentum stocks to trade on a daily basis.  This week presented challenges in terms of the number of trades available.  Fortunately, Read the full article →

3 Simple Donchian Channel Trading Strategies

Donchian Channel

What are Donchian Channels? Richard Donchian created Donchian Channels, which is a type of moving average indicator and a look alike of other support and resistance trading indicators like Bollinger Bands. However, Donchian Channels has a simple plotting of highest high and lowest low of the last “n” periods. The n periods is based on Read the full article →