Slow Stochastic: Does Oversold Always Mean Sell? GBP/AUD Forex Pair bearish
8 days ago
Slow Stochastic Overbought and Oversold Levels
Stochastic Indicators generally are either displayed on a price chart as fast or slow. Slow stochastics uses the settings 14,3,3 refering to the number of periods and the smoothing for the %K and %D lines. To be technically correct, fast stochastic uses the previously mentioned lines while the slow stochastic indicator actually uses two %D lines. Stochastics measures where prices have been over the previous number of periods. So if a symbol has been trading at the higher end of it’s range, stochastic would show higher values. Charted on a fixed 0-100 scale, the out of the box defenition is that above 80 is overbought and below 20 is oversold. While this may work during defined range bound periods, as a trend trader it is optimal to change the settings to better signal trend breakouts as described in our previous article on Trend Trading Stochastics. Hear you can also see a much more detailed explanation of how stochastics works and how traders can decide on entry and exit points based upon the study.
British Pound Bearish Trend
Recently, we’ve seen the British Pound enter a downtrend opening up a short opportunity
Calling A Top In Gold?
78 days ago
Bearish Technical In Gold
Gold has continued to be in the news. Anyone watching either CNBC or Fox Business Channel can see plenty of commercials offering ways to invest in gold. How gold never goes to zero. Or predictions on what the price of gold will do in the coming years. Off course most of those predictions associated with the commercials all point to Gold prices continuing to rise further.
With technical analysis, we always try to read and react to price charts. So what does the chart of Gold, or as displayed here the Gold ETF symbol:gld tell us?
http://thetradesurfer.com/blog/calling-a-top-in-gold
Donchian Channel
114 days ago
Trend Following
Richard Donchian’s 4-week rule was built on the belief that traders should buy things that are making new highs. When price makes new lows, that may be the time to protect profits or cut losses. Donchian’s four week rule was quite simple actually. Traders would buy on a new 20 day high, and sell or short if price made a new 20 day low. Why 20 days? For traders using daily charts, four weeks contain……..
http://thetradesurfer.com/blog/donchian-channel
Oil ETF
140 days ago
Will Oil move back to the old highs?
The US Dollar is making new lows. Gold is at new highs. Crude Oil has broken out of a recent trading range. But will this be another huge uptrend and opportunity those long oil to capture profits? Watching price as always will be key to not only entering trends, but letting winners run while protecting profits.
For those looking to access Crude Oil without having to trade the full value futures contract, Symbol:OIL might be the vehicle.
http://thetradesurfer.com/blog/oil-etf
ADX Indicator: How To Spot Emerging Trend Breakouts
146 days ago
ADX Indicator
Trend trading technicians main objective is to identify trends and be on the correct side. Traders want to ride trends until they end, which is so important because a couple powerfull trends can propel a year to profitability especially when trading losses are kept small. Stocks can be in an uptrend, down trend, or sideways trend. Other times, the trend is too sloppy to trade.
Understanding what phase a stock or market is in may help traders correctly apply the various oscillators and indicators at their disposal
http://thetradesurfer.com/blog/adx-indicator-how-to-spot-emerging-trend-breakouts
Copper ETF
209 days ago
Staying With Powerful Trends
Exchange Traded Funds (ETF) and Exchange Traded Notes (ETN) continue to expand and now offer ways to play both commodities and currencies within regular stock trading accounts. A number of Commodity ETF offerings have been on a run of late including the Copper ETF or exchange traded note to be exact.
Taking a look at the chart we see
http://thetradesurfer.com/blog/copper-etf
Parabolic Sar (SAR)
221 days ago
Trend Trading Strategies
Parabolic Sar is a trend trading indicator first created by J. Welles Wilder. SAR, which stands for Stop and Reverse is a long short trading strategy in that traders are either long a stock,currency,future,etf or they are holding positions short. For those asking does this mean someone using Parabolic Sar is always in the market the answer is yes. Or atleast thats the general intent for those ONLY using this technical indicator.
So how do traders use the indicator to trend trade?
http://thetradesurfer.com/blog/parabolic-sar-sar
The Fast Money Traders Debate Whether Speculators Are To Blame
225 days ago
There is a lot of “speculation”, pun intended by government officials as to whether those evil speculators are to blame for the various bubbles and bursts. Whether it be the rise and fall of crude oil prices, the housing bubble, or any other example being thrown around, when prices move in the direction that some people don’t like common refrains of blame the speculators are heard.
Is Speculation By Traders Bad?
The Fast Money gang does a great job laying out the case for less government regulation and for good reason. Thinking about Crude Oil futures contracts….
http://thetradesurfer.com/blog/the-fast-money-traders-debate-whether-speculators-are-to-blame
Slow Stochastic Breakout Trend Strategy
228 days ago
Stochastics As A Trend Breakout Indicator
Stochastics historically has been used to indicate when a stock is Overbought or Oversold with the belief that as price gets extended it will revert back to a mean area. During range bound periods this works well and allows technical traders to trade price in a range, but the challenge is that when price is seeing higher stochastic readings, it might just be when price IS going to break out and trend.
In order to use as a trending breakout indicator, traders need to adjust the settings first to ensure they are using Slow Stochastic as opposed to Fast, then to use more of a mid-point area of the oscillator combined with a Moving Average. Used in this way, it allows traders to potentially pinpoin trading breakouts. Looking at the attached chart we can see signals overlayed to indicate where potential trend trades were entered or exited. Like any trending indicator the goal is to keep losses small and let winners run so that WHEN price trends, traders can capture the meat of the moves and with a couple large winners can produce favorable results for the year.
First lets examine stochastics and later we’ll explore who to set up your own custom Stochastic Trending Indicator and trading formulas used to screen for breakouts.http://thetradesurfer.com/blog/slow-stochastic-breakout-trend-strategy
Trend Trading Slow Stochastic Trading Formulas
230 days ago
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Trading Strategies
Thank you to all who attended today’s free educations trading webcast. I have included the hypothetical formulas we displayed during the session. They are shown based upon DAILY price bars and other time frames would require adjusting the formulas. These are meant not as a recommendation but merely hypothetical examples. Traders should develop their own strategies anchored with proper risk management and position size. Click on read more to view.
http://thetradesurfer.com/blog/trend-trading-slow-stochastic-trading-formulas
Technical Analysis: Why buy and hold doesn't work
278 days ago
Those still holding onto buy and hold as a strategy may continue to be frustrated when their stocks either don’t move or after many years have moved very little. Trend Trading or Trend Following can be a much better….
http://thetradesurfer.com/blog/technical-analysis-why-buy-and-hold-doesn-t-work