Tag: spreadbetting

 

Who the devil is Aroon?

Aroon is not a ‘who’. Aroon is an indicator of momentum in the markets. But it does more than show momentum. It is about time-momentum which is a novel and under-appreicated concept. The Aroon was developed by Tushar Chande  (PhD in Engineering and MBA at the time). In 1995 Chande first published his ideas on the Aroon, in Stocks & Commodities – a most respected journal contributed to by people of exceptional qualifications and trading experience.Read More

Support and resistance again!!

Today I came across another classic example of support and resistance. I often review things that I had already learned so as to etch in my brain the importance of the concepts. The chart below explains more.

Change takes time

Most trainers talk about discipline. In fact they over-emphasise discipline so much that it becomes a ‘pain’. But there is another aspect to discipline which involves pain. Remember ‘No pain, no gain’? As a noob you really don’t appreciate that much what this ‘discipline’ is about. Well, the markets inflict their own callous discipline on noobs – that’s a different sort of pain. From that pain comes a newfound discipline. ‘Feelings’ about the market causeRead More

The two most important things in trading

It takes some time for the two most important things in trading to hit home. It’s easy to understand the words, but the meaning and importance come later. Limiting loss with sensible stop-losses is of the utmost priority. With a 60 – 80% loss rate which is not unusual, that’s where any profits made on winning trades evaporate. So, it must be of the highest priority. Targets – sensible ones – are the next mostRead More

Trend continuation and trend following

The terms ‘trend continuation’ and ‘trend following’ have caused me some confusion for quite some time until about 6 months ago. The first obvious difficulty is the use of the words themselves. It’s natural to think that if a trend is continuing then you must be following it. But the two techniques are rather different. I will try to crystallise what I’ve discovered (and I may not be 100% correct). [See disclaimer at the end.]Read More

Weapons hot

The following chart is pretty busy – but don’t go crazy with all the lines. Just follow the numbers. What’s happening here is that I’m looking back in order to look forward. The indicators have been used to better see what happened and how I may approach similar setups in the future. I’ve basically combined various ‘weapons’ from my arsenal to attack the chart. [click chart for much larger view]     DISCLAIMER: The informationRead More

Fractals – another arrow for your bow.

Fractal indicators are interesting and add to your tool box. When and how they’re used is entirely up to each individual trader. This post is not to say that ‘they’re good or the best’ or anything like that. When you study your ‘prey’ you may decide that you need certain types of ammunition and equipment for the ‘kill’. You are the boss of you, so you decide what you’ll use and how you’ll use yourRead More

How are stock prices actually set?

We may take it for granted that it’s all about ‘demand and supply’ which determines stock prices. Then I asked myself a few more questions like, “How does that actually work?” – I realised that I didn’t really know. I mean, who sets the price? How is it set? Does the organisation which the share represents set the price? These are natural questions to ask or think about. If it’s the stockmarket that sets priceRead More

Interesting situation with ULTA

ULTA is a powerful stock – very similar to Disney. ULTA has been disrespecting Wall Street for some time and even recently. [Missed opportunity for a snipe in second pic below – learning from this. The first annotation shows that a snipe was possible. The difficulty was locating the opportunity. The second pic shows how it could have been done.] However, the bullishness on the stock could be coming to an end. The analysis belowRead More

GBPMXN slaughter – power of the Relative Strength Index

The relative strength index (RSI) is an indicator used in what’s called ‘technical analysis’. As with most things you read it, you see it, you play with it, and you think you understand it. But for me  – as happened recently – the power of the concept suddenly came home in live trading. My eyes are now open to a new appreciation and understanding. This is not a tutorial on the RSI. This is notRead More