by Thomas DeMark I have been in the investment business for a long enough time to witness all the fads and market concepts that are imaginable. The era of corporate takeovers was a thrill for me. Fortunately, the supply-demand models I had created were...
by Dave Caplan The volatility makeup for a particular market is referred to in the industry as the skew. Each commodity, or group of commodities, has their own particular skew. In many markets a skew exists, meaning that the out-of-the-money calls/puts...
by Adam Oliensis Candlestick reversal patterns primarily apply to trending markets, though they can be meaningful near the tops and bottoms of trading ranges. It is important to note, though, that a “reversal” in the lexicon of candlesticks does not necessitate...
by Andy Chambers Proper record keeping is another one of those basic, fundamental activities that should become second nature to you. There are three sets of records you should always keep up to date. Individual Trade Tickets Trading Log Open Order Log Individual...
by Darrell Jobman Trend following is indeed a valid and profitable methodology, yet even the most trendy markets fall into consolidations or trading ranges about 70 percent of the time. We don’t know when markets are going to trend or when they are going to...
by Rob Roy A stock may consolidate into a wedge pattern as it gets closer to an earnings announcement. Traders may be holding back making trades while they wait for the earnings information to be released. The earnings announcement date is known well ahead of time...
by Dan Keen Stacking the Odds in Your Favor Options trading can be risky. However, writing covered calls is one option strategy that actually makes stock market investing a little less risky, and it should be part of the novice’s bag of strategies. Of...
by Stephen Bigalow Candlestick analysis is a simple approach to finding stocks that have the potential of making a strong move up or down in price. The advantage of Candlestick charts is that the trend is easily identifiable. Begin by making yourself aware of where...
by Ray Frazier The chart below of Ebay is an actual bullish trade that I made between August 13, and August 17, 1999. There is a flat line between 90.74 and 100.98, which is the resistance line that the stock had to cross before I would consider it was making a...
by Jea Yu Spreads Depending on the liquidity of the underlying stock, the spreads on options trades can vary from a few pennies to several dollars. This is why it’s very important that you scope out the liquidity and volume of not just the underlying stock, but the...