Stop Getting Stopped Out!

The Average True Range (ATR) Indicator is a popular volatility indicator worthy of inclusion in your trading toolbox.

When looking at a stock chart, we are often met with a bewildering array of red and green candles. As the market fluctuates from periods of low volatility to high volatility, candles form in all different shapes and sizes. Some in upwards trends. Others in downwards trends. And most in trading ranges.

But through all the noise, do you ever wonder how much a stock on average moves in a minute, day, month, or year?

Enter the Average True Range (ATR) Indicator.

Another technical analysis tool to have in your toolbox are Bollinger Bands. Immensely popular among traders for their reliable signals, Bollinger Bands can accomplish a number of functions:

  • They provide a visual representation of volatility;
  • They show the strength of a trend; and
  • They reveal whether prices are overbought or oversold on a relative basis.

These signals allow traders to find market tops and bottoms, better time entries and exits and anticipate explosive breakouts and breakdowns.

To decide whether you want to incorporate Bollinger Band strategies in your trading plan, we take you through what Bollinger Bands are, how to…

What is Volume? What is Open Interest? And what do they tell us about the market?

Volume and Open Interest are similar in that they show the level of buying and selling underlying a potential price move in options and futures. Understanding these two metrics can give traders a deeper insight into what is happening with options/futures contracts and can assist in ultimately making better-informed decisions.

In this article, we’ll guide you through the answers to our initial questions as well as explain the differences and offer tips on how to use volume and open interest to further your trading…

Due to popular demand, we bring you our ‘Futures Trading How To’.

There’s been immense interest in the Futures Market as of late. With unlimited profit potential, no time decay, no Option Greeks, no PDT Rule, and all hours trading — a new wave of online traders are turning to the Futures Exchange as their principal market of choice

We’ve been urged to write this guide so those new to Futures can have a little more confidence jumping into their first Futures trade.

Whether you’re a stock trader, you’ve dabbled in other markets, or you’re a complete trading novice, we…

We run down the essential day trading candlestick and chart patterns every new trader should learn to recognize

The market is a creature of repetition. Day in, day out traders spot common patterns in candlesticks and the stock chart to help decode price action. By learning to identify these candlestick patterns and chart patterns traders can pre-empt future breakouts and trend reversals.

How? Every candlestick tells a story. Every stock chart, a saga. The battle between the bulls and bears. Buyers and sellers. Supply and demand. Fear and greed. Stock charts convey so much information, it’s easy to get lost in the analysis. Identifying patterns in candlestick charts can help cut through some of the noise of price…

A routine day in the life of a day trader — You get to work from home, or anywhere you want, so long as you have a reliable internet connection. You have the freedom to do what you want, with nobody around to tell you otherwise. And not even the sky’s the limit to what you could earn.

Sounds pretty good, right?

But aside from the perks, what’s not often talked about is the discipline, preparation, meticulous planning, and execution that goes into trading.

The most successful day traders are ‘professional’. What we mean by this is that they treat…

What should you look for in a good trade? Volume!

Well, volume amongst other factors. But in any case, volume is a crucial component to a successful trading strategy. Traders will look at volume when deciding whether a trade is worth entering. Volume plays an important role in technical analysis with the most popular volume analysis tool being the On Balance Volume Indicator.

In this article, we will take you through what is the OBV Indicator and how to best utilize it in your trading strategy. However, before we even touch on the OBV trading indicator, let’s first understand why volume is such a critical component of a good trade.

Why is Volume Important in Trading?

The Day Trading Guide

So you want to be a day trader? Or maybe you’re looking for ways to supplement your income. Regardless of your reason, there is no doubt that day trading is certainly having its day in the golden sun.

Partially sparked by record low-interest rates and people being stuck indoors looking for new ways to entertain themselves and earn profits. TD Ameritrade reports that activity has quadrupled since January 2020 with Robinhood also seeing a huge spike in activity.

But while newcomers may be enticed by the promise of large wins, they’re just as likely to suffer insane losses if they’re…

When purchasing an options contract, a trader is faced with two critical decisions — Which expiration date? And at which strike price? These two decisions have an enormous bearing on whether a trade will be profitable. Choose correctly, and you’ll be seeing green. But pick wrong, and your trade will result in a loss.

In this article, we take you through the basics of option strike prices and the factors you should consider when entering a trade.

What is an Option Strike Price?

We’ll preempt our discussion on selecting strike prices by going over options basics. If you already have a solid foundation of stock options…

Photo by Billy Huynh on Unsplash

Ichimoku Cloud is a versatile technical analysis indicator rapidly rising in popularity among traders. Also known as Ichimoku Kinko Hyo which translates to ‘one look equilibrium chart’ — this is exactly what Ichimoku strives to be. An ‘all-in-one’ style indicator that incorporates multiple elements from different technical analysis tools. At just a glance traders are able to ascertain future support and resistance, price momentum, and trend direction.

While the abundance of lines and shaded areas can leave traders new to the Ichimoku cloud indicator confused and even a little intimidated. Once you single out and understand each separate element, mastering…

Leah Mathieson

Australian lawyer. Living in Los Angeles. Writing about Law, Finance, Wall Street & Startups.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store