Fibonacci Studies and the Stock Market

Introduction Fibonacci numbers were derived from an Italian mathematician Leonardo Pisano. Fibonacci was a mathematician who was born in Italy around the year 1170. It is believed that Mr. Fibonacci discovered the relationship of what are now referred to as Fibonacci numbers while studying the Great Pyramid of Gizeh in Egypt. What are Fibonacci numbers … Read more Fibonacci Studies and the Stock Market

HOW TO TRADE USING CHANNELS

HOW TO TRADE USING CHANNELS Channels are another important technical analysis tool used by traders to determine profitable trade set ups on both short and long sides. Channels give precise entry,exit,stop loss and profit booking levels.   What is a Channel A channel is the combination of an existing trendline and a new, parallel trendline … Read more HOW TO TRADE USING CHANNELS

Understanding Cost of Carry

A future Contract is an agreement between two parties to BUY or SELL an underlying asset, including stocks, indices,commoditities or currency, at a certain time in the future at a certain price. Futures contracts are standardized and are traded on the exchange. To facilitate liquidity in futures contracts, the exchange defines certain standard specifications for  … Read more Understanding Cost of Carry

Trading using Arms Index

The Arms Index (also known as TRIN, an acronym for TRading INdex) was developed in 1967 by Richard Arms. It is a volume-based indicator that determines market strength and breadth by analyzing the relationship between advancing and declining issues and their respective volume. The Arms index is used to measure intraday market supply and demand, … Read more Trading using Arms Index

6 Stages Of A Trader

Very interesting description of how traders evolve over time. The pieces of advice Bo Yoder and Vadym Graifer give at the end of the article are spot on. Definitely worth reading as every trader worth his salt can relate to all the different stages. Enjoy. Stages of a Trader Stage One: The Mystification Stage This … Read more 6 Stages Of A Trader

Do and Don’ts for Intraday Trading

1. Caution. Excitement (and fear of missing an opportunity) can often persuade you to enter the market before it is safe to do so. After a downtrend, a number of rallies may fail before one eventually carries through. Likewise, the emotional high of a profitable trade may blind us to signs that the trend is … Read more Do and Don’ts for Intraday Trading

Finding the Trend using Aroon Indicator

Many traders value time equally to price as a forecasting tool. The Aroon indicator is an important strategy for exploiting both. Aroon-based indicators differ from other price momentum oscillators in that they don’t just focus on price changes; they measure price changes relative to time. This article will examine the logic behind Aroon and show … Read more Finding the Trend using Aroon Indicator

Understanding ON BALANCE VOLUME indicator

Overview On balance volume (OBV) is a momentum indicator, the calculation of which relates volume to price change. OBV was developed by Joe Granville. .OBV provides a running total of volume and shows whether this volume is flowing in or out of a given security. OBV attempts to detect when a financial instrument (stock, bond, … Read more Understanding ON BALANCE VOLUME indicator

How to make a Trading Plan

“Good fortune is what happens when opportunity meets planning.”  —Thomas Jefferson “Reduce your plan to writing. The moment you complete this, you will have definitely given concrete form to the intangible desire.” — Napoleon Hill “He who fails to plan, plans to fail.” However you want to look at it, or whomever you may want … Read more How to make a Trading Plan