CANSLIM Trading Style Broken Down

CANSLIM Trading Style Broken Down

CANSLIM Trading CANSLIM is Investor Business Daily’s (IBD) acronym for the seven common characteristics all great performing stocks have before they make their biggest gains. My trading foundation is rooted in CANSLIM although I use it differently than most beginners now that I have evolved into other styles and methods. CANSLIM Letter Breakdown Let’s start by understanding what each letter represents in the CANSLIM acronym as described by investors.com: C= Current earnings per share should be up 25% or more and in many cases accelerating in recent quarters. Quarterly sales should also…

Forex trading mistakes and traps

Forex trading mistakes and traps

Common Forex trading mistakes and traps There are common mistakes and ‘traps’ that give nearly all traders trouble at some point in their trading careers. So, let’s cover the most common mistakes that traders make which keep them from making money in the markets: • Analysis-paralysis There is a virtually unlimited amount of Forex news variables that can distract a trader, as well as tons and tons of trading systems and trading software. You’ll need to sift through all of these variables and forge a trading strategy that is simple…

Heikin-Ashi Candlestick Chart

Heikin-Ashi Candlestick Chart

Heikin-Ashi Heikin-Ashi Candlesticks are an offshoot from Japanese candlesticks. Heikin-Ashi Candlesticks use the open-close data from the prior period and the open-high-low-close data from the current period to create a combo candlestick. The resulting candlestick filters out some noise in an effort to better capture the trend. In Japanese, Heikin means “average” and “ashi” means “pace” (EUDict.com). Taken together, Heikin-Ashi represents the average-pace of prices. Heikin-Ashi Candlesticks are not used like normal candlesticks. Dozens of bullish or bearish reversal patterns consisting of 1-3 candlesticks are not to be found. Instead,…