First Principles of Technical Analysis (2/?)
The first principle of price behavior: Markets alternate between trends and trading ranges.
First Principles of Technical Analysis (1/?)
The building blocks of market structure and price action. [dc]T[/dc]echnical analysis is the art and science of predicting the future direction, timing, and/or magnitude of a market’s movements, mainly by…
You Get Paid to Hold Overnight
A look at one reason why daytraders may struggle...
Intro To Technical Analysis Course (2/2)
The conclusion of the plan for ITAC.
Intro to Technical Analysis Course: The Plan (1/2)
The plan for the Introduction to Technical Analysis Course
A Few Trading Rules
[dc]I[/dc]n doing the preparation and background work for the book, I found a set of rules for a swing trading system I traded for many years. I thought I would…
How Do You Calculate Volatility In Excel?
How to calculate a simple historical volatility using Microsoft Excel.
Ancient Wisdom / Modern Markets
Wisdom from ancient Eastern texts offer guidance for modern traders in all markets.
Managing Gap Openings
Gap openings can present both danger and opportunity to swing traders. You need a plan for handling these volatile and potentially dangerous events.
Current Technical Situation: S&P 500
A failure test that justifies flipping a long position to a short position.
Small Stops, Big Risks?
[dc]S[/dc]ome of the most persistent myths about trading revolve around the idea of low-risk trades. You will often hear traders say that they took a trade because the risk was…
Two Statistical Studies
[dc]I[/dc] want to share two statistical "studies" with you. Both of these were done this weekend, using the cash S&P index from 1/2/1987 - 10/14/2011. Both show a strong and…
Careful With Correlations
A casual understanding of mathematical concepts can often lead to incorrect conclusions. This post shows that the direction of markets on charts does not necessarily reveal anything about the correlation between those two markets.
What Do You Really Want From the Market?
A look at the true reasons and motivations behind our trading.
Know Your Risk
[dc]"F[/dc]irst, know your risk." Every trader has heard this, and for good reason: It truly is one of the most important elements of successful trading. Amateur traders get into a…
Volatility Compression
[dc]I[/dc] will write more about this in the future, but I want to introduce you to an important concept called volatility compression. From a theoretical perspective, markets tend to operate…