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 →

Tradingsim University

Tradingsim University

The Tradingsim University provides you a framework for how to use the Tradingsim Platform.  Each module focuses on topics that are key to successful day trading.  This is not a race!  Take your team going through each lesson, while using the Tradingsim Platform in order to take your trading to the next level. Much Success, Al Read the full article →

5 Reasons it’s a Bad Idea to Hold Day Trades Overnight

Gap Chart

Are you a day trader? Have you ever considered holding your day trades overnight? Although many traders and investors conduct this practice, today I will explain to you why it is a bad idea if you are day trading. Day Trading What is a day trade? Day trading is when you open and close your Read the full article →

Price Channels versus Bollinger Bands

Three Types of Price Channels

Today we are going to discuss two important tools for identifying support and resistance on any chart – introducing price channels and bollinger bands!  During the course of this article, we will cover the details of each approach and provide a recommendation of which best suits your trading style. What are price channels? Price channels 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 →

How to Trade Rising and Falling Wedges

Rising Wedge

What are rising and falling wedges? Rising and falling wedges are a technical chart pattern used to predict trend continuations and trend reversals. In many cases, when the market is trending, a wedge will develop on the chart. This wedge could be either rising or falling. Wedges can also appear at the end of a Read the full article →

How to Trade Triple Bottoms and Triple Tops

Triple Top

If you are a fan of classic chart patterns, look no further as we will cover two of the most reliable chart formations in this article. What are triple bottoms and triple tops? If you see the price of a stock hitting the same resistance level three times in a row, you have a triple Read the full article →

3 Ways to Spot Trend Reversals with the Mass Index

Theory Behind the Mass Index Indicator

If you carefully observe any bar chart, you can see that even when the stock price is trending upwards or downwards, the price is actually ranging. The only difference between trending and ranging markets is the direction of the range. Once you draw an equidistant channel on any price chart, the ranging nature of price 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 →

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 →