Articles on institutional positioning, options flow, price action, and the neuroscience of trading.
I was recently reading some article on a very popular finance site whereby the person was talking about the stock market and today’s 376pt crash. They were saying how it is not good for buy-and-hold investors, but it is good if you are using a dollar-cost-averaging strategy. The funny thing is this term is totally misunderstood…
Trading Forex is in many aspects the same as trading any other instruments. However, there is one crucial way in which trading Forex is completely different than trading other markets. When you are trading any other instrument, you are trading a single instrument based upon its individual strength or weakness. However, in Forex you are…
In the current environment with the Euro getting punished across the board against every major currency and likely even the Iraqi Dinar, as traders we want to be taking advantage of these environments by getting short and staying short. However, there are times when the short term moves day traders like to take advantage of…
Reversals are one of the most common elements in markets traders are wanting to either know of to avoid or confirm their trade. The clues to whether a reversal is in play are hidden in the price action and easily found. These key elements are found in rejections which show up in the price action…
One of the most difficult challenges for traders is finding forex entries and exits. It’s an important question that needs to be answered and can determine if you are; 1. getting in at the correct location 2. can have your risk defined and as minimal as possible 3. have a clear location to take profit…
When trading price action or using price action triggers such as Pbars, Inside Bars, Shaved Bars, etc. it is important to always wait for the bar/candle to close more than anything else. Many people have challenges trading any system because the signals are forming in real time and not necessarily when the candle closes so…
Wicks are an interesting phenomenon in price action formations and are virtually a part of every candle.Wicks can form on the top, bottom or both sides of a candle and represent the highs and lows of the price action for that candle on that time period. What is important to remember about learning to…
As forex traders, we have the challenging task of trading to make profit from the price moves in the market. This entails finding the where (price), when (timing), and the direction (trend). Most traders end up searching the savannah of trading systems adding tons of indicators on the charts that end up looking like an…