Trading & Technical Analysis

Take Pairs Trading To The Next Level

From the archive: this article first appeared on TheBull in 2011 For CFD users, pairs trading is a standard strategy that lets you ignore the current trend in the overall market, or even in a stock. You make money if your favoured stock – the one you buy – outperforms another similar one that you…

Know Your Strength? Relative Strength Index (RSI)

How many indicators does technical analysis have? Simply put, too many indicators to count, and most charting software will give you the option of customizing existing ones or creating your own. However, the situation was different 33 years ago in 1978, when J. Welles Wilder (engineer, turned real estate developer, turned technical analyst) self-published his…

Bollinger’s Famous Market Discovery

What do a Hollywood lighting designer and an investment guru have in common? The answer is John Bollinger. Some of you may be familiar with the technical analysis term “Bollinger bands”; however, what do you know about the man behind the concept? Surprisingly, the president and the founder of Bollinger Capital Management Inc.-a Californian investment…

Options Shorting Strategies for Beginners

Before proceeding into trading any type of instruments and strategies you have to ask yourself: – What is my goal? – How much time can I dedicate to trading? – What is my risk tolerance? – What is my strategy? Option selling (writing) offers reasonable profit potential and generally requires only couple of hours a…

Developing a trend-following system

I became more interested in moving averages when I was looking into developing a trend-following system, since moving averages help identify trend reversals. Therefore, I took a closer look at the differences between the different types of moving averages and the possible benefits of using one versus another. For those of you new to trading,…

Trader’s Toolkit – Simple Moving Average (SMA)

What is a moving average and why should I care about it? Imagine that you are at the grocery store, but instead of seeing 20 varieties of beer displayed at slightly different prices, you see your favorite beer displayed at the 20 different prices it had for the last 20 sales. Naturally, you ask yourself,…