by Thomas DeMark & Thomas DeMark, Jr. Market highs and lows differ in frequency and duration, depending upon the time frame one applies. For the most part, short-term highs and lows may not have much of an impact upon the overall market picture or...
by Darrell Jobman As an active investor, you probably already know that futures and stocks have some things in common – they are both traded on exchanges, have standardized contracts, can be analyzed technically or fundamentally, etc. However, there are some...
by Adam Oliensis Money Flow indicators measure the flow of money into or out of a security, based on both volume and rising or falling prices. The particular version of Money Flow we will talk about here is normalized in a way that’s similar to how the Relative...
by Rob Roy Selecting the strike that is best for each trading strategy will depend on several factors. Straddles and Strangles are directional techniques and a trader can use the nature of how option prices change, via delta, to gain the best “bang for their...
by Chris Verhaegh With Straddles and Strangles, there is no bias in direction. We buy Straddles and Strangles when we expect greater Volatility than the Market has priced in. We buy Straddles when the stock is at or near the strike price. Since these...
by Andy Chambers If you’re inexperienced at trading options, you’ll soon discover that at any time, an option will have three different prices. Understanding the first of the three prices is easy, it’s the price the last time the option was traded. We...
by Dan Keen At-The-Money Plays Sometimes an option’s premium is high enough that it would be worthwhile to buy the stock and write an at-the-money call with a strike price at the same price you bought the stock. The reason for doing this is because the premium...
by Lee Gettess Stochastics, Relative Strength Index (RSI), Moving Average Oscillators… virtually every technical trader attempts to make use of at least one of these tools, but the statistics show that very few of them meet with success. Does that really mean...
by Kathy Lien Capital flows and trade flows constitute a country’s balance of payments, which quantifies the amount of demand for a currency over a given period of time. Theoretically, a balance of payments equal to zero is required for a currency to maintain...
by Ray Frazier For expected bearish moves in a stock, and therefore a possible bearish put option position, I look for breaks in the stock price’s support and then confirmation of the break from at least one other indicator. Below is a chart of AOL which shows the...