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Trader Insights
118 posts
Beware – fake trading signals
How many times were you certain of that one trading signal that told you that a trend was over? Or what about the one that indicted a trend was just about to begin? Of course, that “prophecy” was eventually dispelled and the market turned against you. It probably happens quite a lot, maybe even more…
Trading Tools to improve on probability
In order to be successful, forex traders need to know the basic mathematics of probability. After all, it’s difficult to achieve and maintain trading gains without first having the ability to understand the numbers and measure them. Many traders use a combination of black box indicators to develop and implement trading rules. Yet, the difference…
About the Aroon Indicator
Through this column we have covered many oscillators which are generally very effective in analyzing momentum; they include the Average True Range, MACD and the VIDYA. Some oscillators are better at predicting short term momentum, while some are lagging indicators and tend to shine brighter when it comes to long term momentum. Yet, in this…
Wisdom in the Accumulation/Distribution Indicator
A double bottom that fails to hold, resistance that gets sliced in a heartbeat or just a trend that surprisingly breaks. Those are just a few of the“nasty“ pitfalls that nearly every trader regularly encounters. Those pitfalls are seemingly out of the blue but are, in fact, just a result of another dimension acting in…
Mathematical Expectation when Trading
Some forex traders use the same trading strategy for all currencies, while others use entirely different strategies depending on the currency pairs being traded. Or, traders may use multiple strategies with multiple forex pairs, in order to perhaps increase profits while reducing the risk of drawdown resulting from over-concentration on a single strategy. Expert advisors…
The Commodity Channel Index
When trading, one of the most important pieces of information to have is the ability to identify momentum—when it begins and when it ends. It can help you plan your next trade and to ensure that that trade is successful. It is in the process of charting momentum that the Commodity Channel Index is especially…
Using Fibonacci Expansions to Set Limits
You’re about to ride a bullish trend; you plan your stop loss and gauge how much you can risk. You also know the rule of thumb—that is that your profit should be at least twice the amount you are willing to risk. But how can you know if the trade you’re considering really has potential…
Improve Your Trading Using Behavioral Finance
Behavioral finance is a field that aims to combine behavioral and psychological theory with economics and finance to provide explanations for why people make irrational financial decisions. Therefore, findings in the field of behavioral finance can be very valuable to those who actively trade the financial markets. In this post, you will be introduced to…
Parabolic SAR verses MACD
Parabolic SAR and MACD are both very effective in spotting pivots and yet there is a difference. In some cases, you will find the Parabolic SAR is more effective while in others you might find the MACD more useful. That is why, in order to make the best of both, you must know the advantages…
Why the Gold to Silver ratio is worth watching
There are many ratios in the trading world that are worth watching. But when it comes to trading precious metals there is one key ratio that everyone must know and should watch. That, of course, is the Gold Silver ratio which is essentially the price of Gold divided by the price of silver. You might…