by Lee Gettess Risk is the area of trading that we have the greatest amount of control. Consequently, what we should try to do is equalize the risk on each trade. We can only make educated guesses as to which trades should be the big winners, but if we risk...
by Adam Oliensis One of the most important reversal candlesticks is the Doji. A doji is characterized by opening and closing prices that are identical (or virtually identical). The ideal doji, with the same opening and closing price, has a real body that is a...
by Kathy Lien More often than not, traders will find themselves faced with a potential breakout scenario, position for it, and then only to end up seeing the trade fail miserably and have prices revert back to range trading. In fact, even if prices do manage to break...
by George Angell There are several factors that affect the overall level of index option prices – the underlying index’s value, the option’s strike price, time until expiration, volatility, interest rates and dividends. The prices of index calls and puts prior to...
by Duane Davis The Fibonacci number sequence is a mathematical cycle that incorporates the expansion and contraction of all elements in nature, from the growth of the smallest leaf on Earth to the largest galaxy in the universe. The Fibonacci number sequence was named...
by Russell Sands As a supplement to the long term trend following approach of the Turtles, I also look at many shorter term indicators. Of everything I’ve examined in the past (and I’ve sifted through a lot of stuff), I personally think that Market Profile is one of...
by Keith Cotterill In order to buy and sell Futures contracts you have to open an account with a registered broker and deposit funds. In futures trading this is known as a “margin” account. Unlike everyday business where companies allow credit, trading...
by Ellie Taft From a practical standpoint, only the highest rated economic reports draw much attention. The rest of the reports can hold less or greater weight, depending on global circumstances at that time. Let’s take a closer look at a few of the more...
by Dave Caplan A trader’s expectation of volatility must dictate his or her strategy, since the flat-price outlook can be traded from either a long or short volatility perspective. What beginning option traders often fail to realize is that, more often than not,...
by Ray Frazier Below is a chart of AOL (America Online). The chart shows a great indicator to use in determining exit points for your options positions (and stock positions). I have plotted two indicators. The first is the 21 bar exponential moving average and is...