Price action, the actual movement of price, is first and foremost when trading. All technical indicators and studies should be used for confirming what price action is telling you. But, how do we read price action? By wave counting. Many…
1. Set Stops Not every trade is going to go your way. We’ve all experienced it many times before. Setting stops is of the utmost importance to protect yourself from a serious loss. It’s like buying insurance. Anything can happen…
Webster’s Dictionary defines gambling as “playing a game in which you can win or lose money or possessions,” or “risking losing (an amount of money) in a game or bet.” Taken very broadly, trading might possibly be seen as gambling. …
Sometimes when you trade, you miss an entry signal, for whatever reason. Perhaps you were being extra cautious, or you just opened up a chart and the entry signal had just passed. What do you do in this situation? You…
Wikipedia defines fractal as “a natural phenomenon or a mathematical set that exhibits a repeating pattern that displays at every scale.” For our purposes, a fractal system or indicator is one that can be used on any instrument, time (or…
Linear regression is a mathematical and statistical model for determining the trend of data points and predicting future data points. According to wikipedia, “If the goal is prediction, or forecasting, or reduction, linear regression can be used to fit a…
Understanding the workings of price action is essential to becoming a successful trader. Investopedia defines price action as simply “the movement of a security’s price.” It goes on to explain that “no two people will analyze every bit of price…
So much of trading is focused on when to enter a trade. Traders utilize all types of indicators, systems and analysis to try to pinpoint when to pull the trigger. Of equal, or even greater, importance is knowing when not…
Many traders use only one time frame. Whether it’s a time chart, tick, range or renko, those traders are trading with blinders. All markets are multidimensional, meaning that different time frames are each telling you different information. You wouldn’t make…
“Time and Sales” data are the actual time, sale and volume of every sale of a particular financial instrument. Also included in the data is whether the sale was at the ask, bid, above the ask or below the bid. …