- The Dow Theory, also known as the Dow Jones Theory, forms an important part of technical analysis. Its principles help traders understand the market better and identify price and volume movements more accurately. This theory was propounded by Charles Dow years ago, even before candlestick charts were invented. Basically, the Dow Jones Theory suggests that the market moves in trends. And understanding this theory can help traders identify market trends, so they can make smarter trading decisions.
Tenet 1 The Indices Discount
Tenet 2 The market has three trends
Tenet 3 Market Trends have Three Phases
Tenet 4 Averages (Indices) must confirm each other
Tenet 5 Volumes must confirm the trend
Tenet 6 Trend is in effect until there is a clear reversal
The Trading Terminal provides with the interface for a trader/investor to invest in the Stock Markets. An learning of order types, method of execution, etc.
A form of technical analysis, Japanese candlestick charts are a versatile tool that can be fused with any other technical tool, and will help improve any technician’s market analysis. They can be used for speculation and hedging, for futures, equities or anywhere technical analysis is applied.
Multiple time-frame analysis involves monitoring the same currency pair across different frequencies (or time compressions). While there is no real limit as to how many frequencies can be monitored or which specific ones to choose, there are general guidelines that most practitioners will follow.
A swing high is a technical indicator signaled by a price peak followed by a decline. · Higher swing highs are associated with uptrends, and lower swing highs …
The real key to be able to trade price action confluence is to have the ability to spot the “merging together” of price when different things like support and …
Volume Spread Analysis/Volume Threat Analysis/VPA attempts to read the action of the smart money or the strong hands by reading the price action with three parameters: the close of the price, the spread, and the volum
Gap trading is a simple and disciplined approach to buying and shorting stocks. Essentially, one finds stocks that have a price gap from the previous close, then watches the first hour of trading to identify the trading range. Rising above that range signals a buy, while falling below it signals a short.
The common levels to pay attention to when trading with the RSI are 70 and 30. An RSI of over 70 is considered overbought. When it below 30 it is considered oversold. Trading based on RSI indicators is often the starting point when considering a trade, and many traders place alerts at the 70 and 30 marks.
Opening range breakouts are one of the important reversal and continuation chart patterns, designed to capture move or reversal during this first hour. The first hour of the trading day is the most active and dynamic period. Though it is the time period where you can make most of your money quickly, you may also lose without a trading plan. The first hour is the most volatile time frame during the trading day.
A breakout trader enters a long position after the stock price breaks above resistance or enters a short position after the stock breaks below support. Once the stock trades beyond the price barrier, volatility tends to increase and prices usually trend in the breakout’s direction.
A breakout is a stock price moving outside a defined support or resistance level with increased volume. A breakout trader enters a long position after the stock price breaks above resistance or enters a short position after the stock breaks below support.
POSTIONAL TRADING CONCEPTS
What Is a Swing Trading Strategy? … The purpose of swing trading is to catch the trend and take advantage of pullbacks and rallies
Moving average crossovers are a popular strategy for both entries and exits. MAs can also highlight areas of potential support or resistance. While this may appear predictive, moving averages are always based on historical data and simply show the average price over a certain time period.
An oscillator is an indicator that fluctuates above and below a centerline or between set levels as its value changes over time. Oscillators can remain at extreme levels (overbought or oversold) for extended periods, but they cannot trend for a sustained period.
Fundamental analysis is a method of determining a stock’s real or “fair market” value. Fundamental analysts search for stocks currently trading at prices higher or lower than their real value. If the fair market value is higher than the market price, the stock is deemed undervalued, and a buy recommendation is given.
CANSLIM, or CAN SLIM, identifies a process that investors can use to identify stocks that are poised to grow faster than average.
Stock screeners are tools that allow investors and traders to sort through thousands of individual securities to find those that fit their own methodologies. These tools are typically free to use on most brokerage sites and are available on some subscription sites, too.
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In Intraday Trading, success relies heavily on choosing the right stocks since you only have a few hours before squaring off your position.
I have created a checklist with a mind mapping method. These help you to remember all criteria while selecting the stocks
The most common types of orders are market orders, limit orders, and stop-loss orders. A market order is an order to buy or sell a security immediately.
Practice will make you perfect so we giving you the Profilio tracker so u want learn and practice Stratgies