I can’t decide for you (the trader) on how tight or wide your stops must be, but I can explain how they (tight or wide stops) will affect your trading. And during the process of explaining their differences, I hope to guide towards better stop placement. This is discussed next.
Category: Technical Analysis
all things technical
The Relative Strength Indicator (RSI) is a technical indicator that was created by J. Welles Wilder and is explained fully in his book, New Concepts in Technical Trading Systems.
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Flags and Pennants
Flags and pennants are very popular short term, continuation chart patterns. They are very reliable and many traders trade them exclusively with great success. If you’re interested, please read on.
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Moving Averages
One of the most common indicators used in technical analysis is the moving average.
This post will give a little more insight into what individual candles tell us. You can read more on the basics of candlesticks here.
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The Rectangle Pattern
In this post I’m covering the rectangle, another popular chart pattern used in technical analysis. The rectangle (also known as a trading range or box) can be a continuation or a reversal chart pattern as you will see shortly.
In this post I will be covering the morning star and evening star candlestick patterns. Both are potent in identifying a potential reversal of price (current market trend). If you are new or need a refresher on candlesticks, you can start here.
In this post I will explain the ascending and descending triangle as chart patterns being used by many traders as part of their trading arsenal. These patterns are very popular in the realm of technical analysis and can be either of the continuation or reversal type as you will see shortly.
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The Symmetrical Triangle
In this post I will explain the symmetrical triangle as a chart pattern being used by many traders as part of their trading arsenal. This pattern is very popular in the realm of technical analysis and can be either of the continuation or reversal type as you will see shortly.
In this post I will cover the shooting and inverted hammer candlestick patterns (also known as pin bars to many traders). They are reversal candles, meaning they indicate that the prevailing market trend may come to an end. Before I go any further, if you are new to candlesticks, you can read about candlestick basics here.