A 5-wave trend can be reversed by a 3-wave countertrend that is full of corrective wave patterns in Elliott Wave Theory. The Elliott Wave Theory is generally applied to bull markets, but it may prove useful...
What does it mean to fade the breakout? This is the type of trade that one can make when they trade in the opposite direction of the breakout — or trading the FALSE breakout. You would always...
6. What Triggers an Exit? “Know when to hold em’ and know when to fold em’” as they say in poker. You also need a great exit strategy when you enter into a trade as well. You need...
Regular divergence is used by traders to identify signs of a possible trend reversal. You will note that you can have either a bullish or bearish divergence, and you should be adept at spotting either one. ...
Trading can be a great way to earn income through profits, but it’s important to remember that it’s a risky business. That’s why it’s important to design your system and test it before you start trading with...
In this article, we are going to show you the very basics of how to create your very own mechanical trading system. Mechanical trading systems are rules-based systems that generate trade signals for you to take. This...
If we all always knew when the appropriate moment to take profit on a trade was, then there would be a lot less chaos in the markets. We would all be armed with the precise knowledge that...
Combining various indicators to get the best results when trading is obviously in your best interest. You don’t want to rely on a single indicator as this is prone to error when you look only at the...
The Stochastic Indicator is a favourite among newer traders because it is one of the first tools that they are taught how to use, and because it is so easy to understand. People really appreciate it when...