STOCK MARKET ENCYCLOPEDIA

Speed and Resistance - A simple trading plan!

2011-11-25T01:29:00.000-08:00

With the use of speed and resistance lines you can discover one of the more simple mechanical methods of trading. You just follow the signals as they are given. While this method is far from perfect, it is an excellent basis to

Is Technical Analysis the HOLY GRAIL or is it just another fools folly?

2011-11-16T00:44:00.000-08:00

Technical Analysis - Is it the HOLY GRAIL to making money in the stock market? Since the markets and most of the stocks have been in apparent free falls over the last several weeks, you may have been asking yourself if this

Options Guide - An Introduction to Trading Options on Futures

2011-11-14T11:00:00.000-08:00

Background to Options A futures contract is an agreement between buyer and seller of the contract to buy/sell a certain amount and quality of a commodity at a certain time in the future, unless the contract is offset. Most futures

The Elliott Wave - Impulse Waves

2011-11-14T01:58:00.000-08:00

I want to discuss some of the rules and guidelines involved with impulse waves and some of the problems you will encounter with them as well. Impulse wave are always the five wave patterns on a chart. It does not matter if it is a

The Elliott Wave - Breaking the wave down a little more

2011-11-14T01:22:00.000-08:00

In previous post (The Elliott Wave - An introduction to this money making method of madness), we started with the bare minimum information about the Elliott Wave and presented the basic structure of two waves. As you recall, the

The Elliott Wave - An introduction to this money making method of madness

2011-11-13T23:50:00.000-08:00

The Elliott Wave was discovered by Ralph N. Elliott in the 1920's. His theory is based on crowd and social behavior patterns and trends. He found that these trends are quantifiable and that they can be charted and to a degree

How To Make Money In Commodities

2011-11-13T10:36:00.000-08:00

Predictions are everywhere - I've even made a few myself. Every financial channel on radio and TV and every newspaper across the country love to quote the 'experts' and their predictions are often treated as if they came down from

What is FOREX Trading?

2011-11-13T09:56:00.000-08:00

Foreign Exchange is the simultaneous buying of one currency and selling of another. In the foreign exchange market currencies are always priced in pairs; therefore all trades result in the simultaneous buying of one currency and

Momentum - Overbought and oversold, divergences

2011-11-13T07:22:00.000-08:00

In previous post (Momentum - What it is and what it can do for you.) we reviewed a little bit about what momentum is by using the analogy of a sports event. By using that example, I think you have felt or experienced it or

Momentum - What it is and what it can do for you.

2011-11-13T03:12:00.000-08:00

Most of you, understand momentum in a sports setting. It is the intangible feeling that everyone has that one team is more in control of the game and therefore most likely to have the outcome result in the way they prefer. With the

How to Use Bollinger Bands

2011-11-13T02:14:00.000-08:00

Bollinger Bands were first created by and got their name from John Bollinger. I remember him well as a commentator on a financial news network. He has left the TV commentary business and struck out on his own as a financial analyst

Fibonacci arcs, fans and time zones.

2011-11-13T01:56:00.000-08:00

Fibonacci Arcs As you recall, last week we discussed an amazing man by the name of Fibonacci and the principals of the series of numbers he is credited with discovering. In this section, we will look at the Fibonacci arc and it's

Knowing When to Sell

2011-11-13T00:51:00.000-08:00

This is the toughest question every investor faces because buying is relatively easy. There's lots of enthusiasm when you find the stock that seems to have everything. You can't wait to put in the order and watch its meteoric rise

Chart Pattern Recognition - Gaps

2011-11-12T23:31:00.000-08:00

A upward gap on a stock chart is formed when the security opens higher than the intra day high of the period before and moves higher still. A gap is formed between the two days prices; an empty space . A downward gap is when the

Directional Movement System - Trading Strategies

2011-11-12T14:50:00.000-08:00

A simple DI+/DI- crossover could be an entry and exit system. However, used that way it produces frequent whipsaws and just as frustrating many of the stop and reverse points are way after the optimum time to take profits, in effect you are trading from one equilibrium point to the next which by definition leaves on the table that range between peak (trough) and the equilibrium point, this is

Pennants, Flags and Wedges - Chart Patterns

2011-11-12T14:32:00.000-08:00

Pennants look like pennants, flags look like flags and wedges look like wedges. Each are short lived periods of correction and consolidation of well established trends. Pennants and flags usually last from days to a few weeks so

Chart Patterns - V Reversal Patterns

2011-11-12T14:29:00.000-08:00

This pattern, also sometimes called a spike reversal, is easy to recognize in retrospect but difficult at the time. Formerly they were not too common in the stock market but they are common in commodity futures markets. With the

Investment Mistakes to Avoid !

2011-11-12T13:29:00.000-08:00

UNDERSTAND WHAT YOU ARE INVESTING IN This seems like a no brainer but you might be surprised to know how many people are willing to put up their life savings when they don't even know how the markets work or even what a stock,

A LOOK AT VOLUME AND ITS USE IN YOUR ANALYSIS

2011-11-12T12:25:00.000-08:00

Many traders and investors, particularly new ones, get so involved in all of the different indicators that are available in the newer technical analysis programs that they forget or just plain ignore some of the more tried and true

Should you use fundamental analysis?

2011-11-12T10:42:00.000-08:00

The short answer to that question is we believe you should, at the very least review, the fundamentals for any investment you are considering. We believe you can sprinkle in a little fundamental analysis along with your usual

Money Management Issues - How to use a set percentage of your trading funds

2011-11-12T01:07:00.000-08:00

In the previous post we reviewed the more traditional approach to money management by placing stop on your stock trades or a mental stop using your own technical analysis on option trades. Just for a short review, these types of

Money Management Issues - How to Use Stop Loss Orders?

2011-11-12T01:00:00.000-08:00

You would think that if you could pick the right stocks and the direction of the trend most of the time you would be able to make a sizable amount of money trading or investing in the stock market. This just seems to make sense

How to use The Relative Strength Index (RSI)

2011-11-11T23:37:00.000-08:00

The Relative Strength is an oscillator that helps measure the momentum of your stocks or what ever you are attempting to analyze. This oscillator was developed in the 70's so it is one of the older technical analysis indicators

The Stochastic Oscillator - The stochastic indicator, it's construction and interpretation.

2011-11-11T14:28:00.000-08:00

The definition of the stochastic oscillator is : a comparison of where a security's price is, relative to its price range over a given amount of time. The stochastic is displayed on your computer screen as two lines. The main

Moving Average Definition

2011-11-11T12:01:00.000-08:00

The moving average is probably THE basic tool of technical analysis. It is used on its own, as well as in combination with other moving averages and even as moving averages of moving averages. It is also one of the most basic of