Tag: moving averages

Moving Averages Can Identify a Trade

Posted on by The INO.com Team

These 3 charts help you understand how moving averages work

By Elliott Wave International

Moving averages are a popular tool for technical traders because they can "smooth" price fluctuations in any chart. EWI Senior Analyst Jeffrey Kennedy gives a clear definition:

"A moving average is simply the average value of data over a specified time period, and it is used to figure out whether the price of a stock or commodity is trending up or down... one way to think of a moving average is that it's an automated trend line."

Moving averages are both easy to create and extraordinarily dynamic. You can choose which time frame to study as well as which data points to use (open, high, low, close or midpoint of a trading range).

Jeffrey Kennedy shares 3 of the most popular moving averages in this excerpt is from his 10-page eBook: How to Trade the Highest Probability Opportunities: Moving Averages. Continue reading "Moving Averages Can Identify a Trade" →

3 ways to the use the 200 day moving average

Posted on by The INO.com Team

Today we welcome Michele Schneider to the Trader's Blog. Michele is going to share with you how she uses the 200 day moving average to trade. Michele "Mish" Schneider is the Director of Trading Education & Research for MarketGauge. She provides in-depth trader training as the market analyst, writer and host of Mish's Market Minute, contributes to several online trading publications a series of trading strategy articles called Taking Stock, and serves as a regular contributor to MarketGauge's free newsletter Market Outlook.

The 200 day moving average may be the granddaddy of moving averages. Simply put, a financial instrument that is trading above it is healthy; below it, anemic. The 200 day moving average measures the sentiment of the market on a longer term basis. This is where major players like pension plans and hedge funds need to look in order to move a large amount of stocks. I display it on all my workspaces proudly, formatted in emerald green and real thick so I can't help but notice. Continue reading "3 ways to the use the 200 day moving average" →

A basic guide to choosing technical indicators

Posted on by The INO.com Team

Today's Guest Blog post comes courtesy of Kathleen Brooks who is a UK and EMEA research director at Forex.com based in London. She uses both fundamental and technical methods in her analysis. She provides daily research and market updates as well as a weekly webinar on market themes. She is a regular contributor to Yahoo Finance, Reuters Great Debate Blog as well as a host of other international publications. She is often quoted in the global financial press and is a regular contributor on business TV including CNBC, CNBC Arabia, the BBC and Bloomberg. She started her career in finance at BP where she worked first as a business analyst in its trading division and then as a trading analyst in its foreign exchange dealing room. Click here to find out more about Forex.com.

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Navigating your way through the forex market is a bit like trying to find your way out of a deep, dark cave with only a flicker of a match. To get out of the cave you need a torch, and luckily for the retail trader there are figurative torches in the foreign exchange markets too.

One such beacon is technical analysis, which can make life a lot easier. Moving averages, relative strength indicators, Bollinger Bands, Fibonacci retracements, MACD's and Ichimoku Cloud charts are just some of the technical indicators that are widely used in the forex markets as buy and sell signals.

The Simple Moving Average Continue reading "A basic guide to choosing technical indicators" →

Traders Toolbox: Support & Resistance Revisited...

Posted on by lindsay

Trader's Toolbox

At MarketClub our mission is to help you become a better trader. Our passion is creating superior trading tools to help you achieve your goals -- no matter which way the markets move -- with objective and unbiased recommendations not available from brokers.

The Trader's Toolbox posts are just another free resource from MarketClub.

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Support & Resistance Example

"Although many of you will find this lesson in one of the most basic concepts of market behavior “old hat”, it never hurts to review. One of the first things a new trader is told (I hesitate to say learns as many never do) is to buy a breakout above resistance and sell a fall through support.

Resistance is the level which holds a market down, while support is an area which props up a market much like a ceiling and a floor. The key is to identify the critical levels. There are a number of methods to determine support and resistance: trendlines, moving averages, retracements, Gann angles, etc. However, simple observation can be an effective means of locating the important areas. A quick glance at the October cotton chart reveals the most basic levels of support and resistance (broken lines)..."

Revisit the Trader's Toolbox Post: "Support & Resistance" here.

Allow me to share with you this free mini-email trading course

Posted on by The INO.com Team

Hello,

My name is Adam Hewison. You might want to Google Me to confirm what I am about to share with you.

There are plenty of people out there that create "exclusive email courses" with little or no credentials to actually backup their teachings. So, I think it's right that I share a little bit about myself with you before we even start.

I was a former floor trader on the IMM, IOM, NYFE and LIFFE as well as a risk manager of a large, multinational corporation in Geneva, Switzerland. I also have written books on forex trading and trend following. In 1995, I founded INO.com and later co-founded MarketClub. I've been in the trading biz for over three decades and have seen it all. I created this course as a way to give back and share trading tips and techniques that I still use in my trading today.

In my Free Mini Email Course, I will show and explain the tools and strategies you need to increase your success rate in the marketplace.

Here's just a small sampling of what you'll learn in this course:
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(1) The importance of psychology in price movement (2) How to spot mega trends (3) Understanding of technical price objectives (4) How to picture price objectives (5) How to trade with moving averages (6) How to use point and figure trading techniques (7) How to use the RSI indicator (8) How to correctly use stochastics in your trading (9) How to use the ADX indicator to capture trends (10) How to capitalize on natural market cycles.

Plus, you will you will learn all about fibonacci retracements, MACD, Bollinger Bands and much more. Just fill out the form and we'll get you started right away.

Every success,

Adam Hewison

President, INO.com & Co-Creator, MarketClub