by Adam Oliensis Japanese Candlesticks provide an excellent piece of the Technical Analysis puzzle. Each candle gives you the opening price, the low of the period, the high of the period, and the closing price. Because markets are fractal (they display similar...
by Lee Gettess What we want to see is how the market is forming on intraday charts as they approach a system entry. These patterns have been discussed at great length. Much has been written about 1-2-3 or A-B-C patterns, and they are a good place to...
by George Angell A market does not exist in a vacuum. There are always complementary indicators, markets, and news events that influence how a single futures market behaves. Indeed, there are often so many of these, the problem becomes how best to sort out...
by Rob Roy The delta and gamma numbers can be expressed into a graph for greater clarity. The delta graph is a result of a gamma graph, however being that these two option Greeks are so interrelated, the focus will be on the delta graph. The image below shows the...
by Kathy Lien Risk reversals are a useful fundamentals-based tool to add to your mix of indicators for trading. One of the weaknesses of currency trading is the lack of volume data and accurate indicators for gauging sentiment. The only publicly available...
by Duane Davis We are going to talk about how the S&P 500 Index has performed during a 15-year period on each of the days of the week. During the bull market, the S&P 500 made most of its gains on Mondays. Then, during 2001 and 2002, Monday became...
by Andy Chambers What are the differences between purchasing shares of stock compared to purchasing an option contract? Let’s say that you happen to feel that the stock of IBM is likely to increase in value by around 10% during the next six months. You could buy the...
by Dave Caplan A trader may see if current market volatility is high and implied and the historical volatilities are at the upper band of their normal range, and volatility has been rising. He then initiates a “Neutral Option Position.” If the trader has...
by Russell Sands Many of you may already know my disapproval of looking at anything other than direct price action of the market you are trading; to say nothing of my contempt for some of the more ‘exotic’ indicators out there. Well, one of the hot new twists in...
by Ray Frazier You can buy options on most stocks, but without knowing which direction a stock is more than likely to go, you are just guessing... which is inappropriate for anyone that is involved with stocks or options. That’s how so many people lose a great...