Moving Average Moving Average is a general name for a group of functions where the values at each point are equal to the average value of the initial function for the previous period. Moving Average is one of the simplest technical analysis tools and one of the most popular indicators among traders of different levels. The price always tends to … Read More
Triple-witching expirations
The S&P Witch Project” (Active Trader, December 2004) analyzed how the S&P 500 index behaved surrounding “triplewitching” expiration days — the two-day periods in March, June, September, and December when stockindex futures, stock index futures options, and equity options expire. (After single-stock futures were launched in November 2002, triple witching days were sometimes called “quadruple witching” days because these new … Read More
Rolling LEAPS calls
You can make money buying stocks and holding them for long periods, but you risk a large amount of capital when doing so. By contrast, buying calls can provide the same type of returns with less risk. The problem is that time decay works against you. A strategy designed to compensate for this drawback is buying long-term calls on exchange-traded … Read More
Straddling the COT report
Traders often view the Commitment of Traders (COT) report as a futures market Rosetta Stone — the key to deciphering where different markets are headed. The problem is that the report can confuse as much as it clarifies. Each week, the Commodity Futures Trading Commission (CFTC) publishes the COT report, which lists open interest in more than 90 futures markets … Read More
Trading in 2005-2008 T-note futures
Although some aspects of markets never change, specific volatility and price patterns evolve over time, and only those traders who can adapt their strategies to the prevailing market conditions are likely to enjoy sustained success. “Dissecting T-note futures: Tendencies and characteristics” (Active Trader, July 2005) details the behavior of the 10-year T-note futures (TY) contract from March 1, 2004 to … Read More
The importance of buying time
The long straddle is a non-directional option strategy that can yield solid results with low risk. It’s used when you expect a stock or futures contract to make a big price move but you don’t know whether it will be up or down. Besides price, the other variables that affect the value of a long straddle are volatility and time. … Read More
The week ahead on Euro
Week ahead on Euro chart: As far as we can see, there is not much change from when we last looked Weekly timeframe perspective: Last week’s action saw price form a bullish engulfing candle a few pips from above the long-term weekly swap level coming in at 1.0411. However, last week’s close 1.0813 was unable to close above the … Read More
Triple Drop chart
Triple Drop chart: You see here the correction for the three target! – The first target level of 23%. (1.13) – The second target level of 38%. (1:18) – And the final target level of 50% (1.22) You will see that EUR falls to 0955 !!!
Trend lines, support and resistance – IqOption
Trend lines, support and resistance Trend Lines (Support, and Resistance) help identify the trend direction and the reversal points. There are three types of trends: “bullish” (price rise), “bearish” (price fall), “sideways” (price without change). Why do we need it? Defines direction of future price movements. Determines the strength of the trend. Defines the entry points. How to use? Drawing … Read More
Japanese Candlesticks – IqOption
Japanese candlesticks are the most often used chart type. Japanese candlesticks first used by Japanese rice traders over 200 years before the first charts appeared in America. Why do we need them? Help to analyze the price movements. Define the entry points. The Japanese candlesticks are very helpful in defining the chart patterns. These patterns can indicate a reversal or … Read More