Dont risk more than 2% for any trade
Opening and Closing Price
Opening Price reflect the amateur's interest. Professionals use that and build their trade for the day.
Opening prices most often occur near the high or lows of the daily bar
Amateurs are active during the morning and early in the week while Professionals are most active at the closing.
Dont risk more than 2% for any trade
Opening Price reflect the amateur's interest. Professionals use that and build their trade for the day.
Opening prices most often occur near the high or lows of the daily bar
Amateurs are active during the morning and early in the week while Professionals are most active at the closing.
Closing price are for the professionals. Professional set the price.
Trend Following indicators
Closing price are for the professionals. Professional set the price.
Trend Following indicators
MACD is trend following. Trend following indicators are lagging indicators
Other trend following indicator : On Balance Volume, Accumulation/Distribution
Oscillators:
Help identifying turning points. Stochastic is a popular oscillator.RSI is another, Williams %R. Oscillators are leading indicators that turn ahead of price movement.
If Indicators signals are not clear. Leave them and move to another.
EMA - 22 EMA is one of the best because there are usually 22 trading days in a month.
MACD
1) calculate 12 day EMA of closing prices
2) calculate 26 day EMA of closing prices
3) Substract 26 day EMA from the 12 day EMA and draw a line.This is MACD fasline
4) Calculate 9 day EMA of the fastline and plot the result as a dashed line.This is the slow signal line.
MACD: When the fast moving EMA on MACD crosses the Slow moving EMA and goes up, it means the bulls are dominating and it is good to go long. When the Slow moving EMA on MACD crosses the fast moving EMA and goes up, it means bears are dominating.
MACD Histogram - Difference between MACD line and Signal line. Histogram gives an early signal before the crossover like a squeeze.
ADX - Directional indicator
1. Trade only from the long side when the positive Directional line is above the
negative one. Trade only from the short side when the negative Directional line
is above the positive one. The best time to trade is when the ADX is rising,
showing that the dominant group is getting stronger.
2. When ADX declines, it shows that the market is becoming less directional. There
are likely to be many whipsaws. When ADX points down, it is better not to use
a trend-following method.
3. When ADX falls below both Directional lines, it identifies a flat, sleepy mar-
ket. Do not use a trend-following system but get ready to trade, because major
trends emerge from such lulls.
Accumulation/Distribution is more finely calibrated than OBV because it credits
bulls or bears with only a fraction of each day’s volume, proportionate to the degree
of their win for the day.
Opening and Closing Price
Opening Price reflect the amateur's interest. Professionals use that and build their trade for the day.
Opening prices most often occur near the high or lows of the daily bar
Amateurs are active during the morning and early in the week while Professionals are most active at the closing.
Dont risk more than 2% for any trade
Opening Price reflect the amateur's interest. Professionals use that and build their trade for the day.
Opening prices most often occur near the high or lows of the daily bar
Amateurs are active during the morning and early in the week while Professionals are most active at the closing.
Closing price are for the professionals. Professional set the price.
Trend Following indicators
Closing price are for the professionals. Professional set the price.
Trend Following indicators
MACD is trend following. Trend following indicators are lagging indicators
Other trend following indicator : On Balance Volume, Accumulation/Distribution
Oscillators:
Help identifying turning points. Stochastic is a popular oscillator.RSI is another, Williams %R. Oscillators are leading indicators that turn ahead of price movement.
If Indicators signals are not clear. Leave them and move to another.
EMA - 22 EMA is one of the best because there are usually 22 trading days in a month.
MACD
1) calculate 12 day EMA of closing prices
2) calculate 26 day EMA of closing prices
3) Substract 26 day EMA from the 12 day EMA and draw a line.This is MACD fasline
4) Calculate 9 day EMA of the fastline and plot the result as a dashed line.This is the slow signal line.
MACD: When the fast moving EMA on MACD crosses the Slow moving EMA and goes up, it means the bulls are dominating and it is good to go long. When the Slow moving EMA on MACD crosses the fast moving EMA and goes up, it means bears are dominating.
MACD Histogram - Difference between MACD line and Signal line. Histogram gives an early signal before the crossover like a squeeze.
ADX - Directional indicator
1. Trade only from the long side when the positive Directional line is above the
negative one. Trade only from the short side when the negative Directional line
is above the positive one. The best time to trade is when the ADX is rising,
showing that the dominant group is getting stronger.
2. When ADX declines, it shows that the market is becoming less directional. There
are likely to be many whipsaws. When ADX points down, it is better not to use
a trend-following method.
3. When ADX falls below both Directional lines, it identifies a flat, sleepy mar-
ket. Do not use a trend-following system but get ready to trade, because major
trends emerge from such lulls.
Accumulation/Distribution is more finely calibrated than OBV because it credits
bulls or bears with only a fraction of each day’s volume, proportionate to the degree
of their win for the day.
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