What are moving averages? Moving averages are one of the most useful methods of identifying and profiting from trends by the smoothing of price data Moving averages are one of the oldest tools in technical analysis and are used in many different types of capital markets such as stock, commodity and foreign exchange markets Moving averages are a lagging indicator Why do we use moving averages? Moving averages are used to smooth price (the longer the period, the smoother the moving average will appear) Moving averages help technicians determine trend and trend changes Moving averages are used to identify support and resistance levels Moving averagesRead More →

Stock Charts For Dummies – by Greg Schnell The easy way to get started in stock charts Many trading and technical analysis books focus on how to use charts to make stock trading decisions, but what about how to actually build a chart? Stock Charts For Dummies reveals the important stories charts tell, and how different parameters can impact what you see on the screen. This book will explain some of the most powerful display settings that help traders understand the information in a chart to find outperformance as its beginning. Stock Charts for Dummies will teach you how to build a visually appealing chartRead More →

As the stock market evolves so must investors. Most retail investors trying to learn technical analysis are all reading the same books written decades ago. They come up with the illusion of magical chart patterns that should form in a specific way. But what most investors do not realize is these books were written before the market was dominated by algorithms, high frequency trading firms, dark pools and a multitude of alternative trading systems for matching orders. Historically, stock charts were created with primarily price and time. Volume was rarely included because there were only a handful of exchanges for executing orders. Candlesticks were notRead More →

Head and Shoulders Reversal Pattern The head and shoulders pattern is one of the most notorious technical patterns. When traded properly its statistical success rate is very high. Although the complexity of pattern often causes impatient traders to anticipate the formation and front run the breakout. What makes the head and shoulders pattern so complex, is it combines all possible components of a technical pattern: volume, trendlines, rounding, support (resistance lines), and the breakout. The head and shoulders pattern is mostly known as a reversal pattern found at a major top or bottom, however what fools many traders is this pattern can also developed as aRead More →

If you have been following me on twitter you know I am a huge proponent of the “Volatility Squeeze”, and since my inbox is consistently filled with inquiries about this trading strategy and my use of the Bollinger Bands, I thought I would write a blog post about my favourite setup.Read More →

As a momentum trader, I rarely look at major indexes, but at small-cap names with high institutional or insider ownership. This is because small-cap names offer many advantages to traders. One being that they tend to move with a greater velocity than large-cap names. This is due to supply and demand. Generally, retail traders follow the major indexes, while assuming these benchmarks reflect the entire market. However, this is often not the case. Just analyzing the major indexes limits your ability to make higher profits. This is not a problem for the hobby trader, but for the trader interested in making a living, this canRead More →