Bollinger bands are one of the most useful indicators ever created. By measuring the volatility of price action on a chart the bands can provide keen insight into future price action. Using the moving average Bollinger bands looks back and calculates a mean and plots the bands by a specified deviation based on your input. [...]
I use a variety of indicators on my trading charts. It is important to me to be able confirm short term trends through the use of multiple variables. The middle indicator on all of my charts is always the MACD. MACD stands for Moving Average Convergence/Divergence Indicator. It is an indicator I have used for [...]
It seems every trader I talk to has a favorite trade set-up that he/she claims has never lost money. Common sense dictates that such a statement is pure nonsense. I always think to myself “surely the trade has lost money at least once.” Or is it nonsense? The toughest concept for most novice, and many [...]
It is easy to know when to start following an advisor or trading system – start trading as soon as you have determined it is the right investment for you. But, do you know when you’ll stop following that new system? Whether you are following your own trading system, or following an advisory, newsletter or [...]
Moving Averages (MAs) could be used from the simple to the complex trading system. The basic of trading using MAs is to trade in the same direction of their slope. When enter a trade, don’t buy high above Moving Averages or sell low below MAs. Enter a trade when price return to MAs. When traders [...]