0Posted by Michael Glass on February 18, 2012 at 2:26 pm
How to use
Pivot Points for
Stock Market Trading
Pivot Points are technical indicators derived by calculating the average of a particular stock’s, forex pair or futures high, low and closing prices. Using pivot points as a trading strategy has been around for a long time and was originally used by floor traders. Pivot Points have become very popular with day traders because of their ability to identify support and resistance based off of the prior days price action. If price action falls below the pivot point, it may be used as a new resistance level. Conversely, if the price action rises above the pivot point, it may act as the new support level.
Currently, there are several different ways to calculate pivot points. Using some simple arithmetic and the previous days high, low and close, a series of points are plotted on a chart. These points can be used as support and resistance levels. The pivot level, support and resistance levels calculated from that are collectively known as pivot levels. You can find one of the popular sites used to help calculate pivot points by clicking here.
Some trading strategies used by traders utilizing Pivot Points are:
0Posted by Michael Glass on February 5, 2012 at 5:53 pm
Bollinger Bands vs. Keltner Bands vs. Momentum Bands
Technical Analysis Comparison
Technical Analysis is a method of evaluating stocks, futures or forex pairs by analyzing the data generated by market activity, such as past prices and volume. Day traders do not attempt to measure what the intrinsic value of a stock may be, but instead use charts and other tools to identify patterns that can predict future price action. Many day traders attempt to categorize technical indicators.
For me, I like to use certain indicators to gauge overbought and oversold conditions. I use another set of indicators the assess the strength of the markets move. I also use a set of indicators to look at the volatility of the price action. This leads us to today’s discussion of Envelope indicators.
Envelope indicators define the upper and the lower margins of the price range. The band margins shifting is determined with the market volatility. Some examples of envelope oscillators are:
Bollinger Bands consist of a center line and two price channels (bands) above and below it. The bands will expand and contract as the price action of an issue becomes volatile (expansion) or becomes bound into a tight trading pattern (contraction).
Keltner Bands are upper and lower bands that adapt to changes in volatility by using the average true range.
Momentum Bands are a variation of Bollinger Bands devised by David Elliott.
Watch the video below to learn more about these indicators and how each give a different signal to day traders.
0Posted by Michael Glass on November 5, 2011 at 12:04 pm
Weekend Stock Market
Technical Analysis
Trading Plan
Here is our Weekend Stock Market Technical Analysis Trading Plan for Saturday, November 5th. In each video update, we attempt to identify high probability trading setups for the next week. We also look at the key market moving events of the past week including the Greece’s threat to opt out of the Eurozone’s bailout. We then pull up the charts to identify key technical analysis price levels for the S&P 500. We then look to see if some of the market leaders are pulling the market higher or lower (Apple, Amazon, Google, Goldman Sachs, Netflix and Priceline). We also try gain insight to the market’s future direction by looking at the charts for The Dollar, Gold and Crude Oil. Finally, in our education spotlight, we continue to look at what separates winning and losing traders. Today we look at the importance of developing a process for filtering your trades and using dual timeframe agreement for confirmation.
0Posted by Michael Glass on October 30, 2011 at 9:46 am
Weekend Forex
Technical Analysis
Trading Plan
Here is our Weekend Forex Technical Analysis Trading Plan to help day traders to learn how to trade Forex Currency Pairs by identifying high probability trading setups. In this video, we discuss key technical analysis price levels for USD/CHF EUR/USD GBP/USD and Gold. We look at each forex pair on multiple time frames to identify key support and resistance price levels. We also look at price levels to setup on various pairs based upon the current trend.
0Posted by Michael Glass on October 29, 2011 at 11:06 am
Weekend Stock Market
Technical Analysis
Trading Plan
Here is our Weekend Stock Market Technical Analysis Trading Plan for Saturday, October 29th. In each video update, we attempt to identify high probability trading setups for the next week. We also look at the key market moving events of the past week including the Eurozone increasing its bailout package over 1 Trillion dollars. We then pull up the charts to identify key technical analysis price levels for the S&P 500. We then look to see if some of the market leaders are pulling the market higher or lower (Apple, Amazon, Google, Goldman Sachs, Netflix and Priceline). We also try gain insight to the market’s future direction by looking at the charts for The Dollar, Gold and Crude Oil. Finally, in our education spotlight, we continue to look at what separates winning and losing traders. Today we look at the importance of developing a process for filtering your trades and using dual timeframe agreement for confirmation.
