If you are an active day trader, you are probably aware that Fibonacci retracement and extension levels are some of the most important and useful tools in all of price action. Day traders and technical analysts can use Fibonacci levels analysis to confirm an entry-level, target a take profit, and to determine your stop […]
Day traders use technical analysis indicators out of absolute necessity. It would be incredibly difficult to make profits consistently on fast time frames by just relying on fundamental data. As a trader, it is mandatory to use tools that show market data and price action to help you form decisions. But what is technical […]
Moving averages are among the most popular tools for all forms of trading. Day traders and swing traders use them to track the average price of financial instruments over a given time period as part of their trading strategies. Traders rely on moving averages to provide an overview of average price movement and filter […]
Whether your an investor or a day trader, knowing how to tell if a stock is bottoming out is a great way to find good entries in stocks. “Buy the dip” is one of the biggest memes on Financial Twitter (‘fintwit’). Users like Ramp Capital are famous for their relentless bullishness in the face of […]
What is a Blow-Off Top? In a vacuum, a blow-off top is a steep increase in volatility, volume, and rate of price change which ultimately leads to a collapse in the opposite direction. On a chart, the price pattern often resembles a cone. It steeply increases, reaches an extreme high, then steeply decreases, with the […]
Many of the best day traders in the world use momentum indicators and achieve outstanding results every year. Momentum traders assume the broader stock market is right and stocks that have shown a recent pattern of upward or downward movement will continue their path. To summarize a well-known phrase among traders, “the trend is […]
As a day trader, you know one of the keys to understanding price movement is analyzing volume trends which is where the Ease of Movement Indicator comes in. Volume and volatility go hand-in-hand and day traders need an ample amount of volatility in order to lock in large gains. In volatile markets, volume and […]
Macroeconomic indicators give you a big picture on the health of the economy, but why is that important and how can you use them? Below we’ll look at some peculiar macroeconomic indicators in different industries that help gauge market strengths and weaknesses. The Texas Ratio The Texas Ratio is a quick and dirty accounting ratio […]
When it comes to trading stocks, it is important that traders know how to use indicators to enter and exit trades. One key chart indicator, which day traders use to determine where stability lies, is the Moving Average (MA). Moving averages are popular among day traders, investors and technical analysts around the globe. These […]
Most day traders prefer to use candlestick charts for their analysis, but most have not heard of the Heikin Ashi candlesticks. Heikin Ashi candlesticks have recently gained popularity by day traders to identify a given trend more easily. They look pretty similar to Japanese candlesticks at the first glance, but there are still some […]
