CCI Correction

Introduction – what is the CCI? Developed by Donald Lambert, the Commodity Channel Index (CCI) is a momentum oscillator that can be used to identify a new trend or warn of extreme conditions. This strategy uses weekly CCI to dictate the trading bias when it surges above +100 or plunges below -100, which are key levels noted by Lambert. Once the trading bias is set, daily CCI is used to generate trading signals when it reaches its extremes. Strategy Lambert’s trading guidelines for the Commodity Channel Index focused on movements…

Trading Charts: Periods

TRADING CHARTS: COMMON CHARTING PERIODS There are four types of trading charts commonly used by investors: Monthly Charts Weekly Charts Daily Charts Intraday Charts The different chart types illustrate a few ways price movement is expressed over a period of time. Now we will reverse that and examine price movement over different periods of time. You will notice that your view of a particular market can change drastically only by switching to a different time horizon. Monthly Charts These are trading charts that illustrate the movement of price over a…

The Law of Demand

The law of demand and it’s application The law of demand and it’s application to fundamental analysis of commodities rests upon an understanding of consumer behavior. The factors which characterize consumer choice and how the market place reflects individual consumer responses are key components of this economic theory. Understanding what factors have affected demand in the past will help to develop expectations about demand in the future and its impact on market price. Demand for a particular product or service represents how much people are willing to purchase at various prices.…

Gaps and Gap Analysis

What are gaps and what do they mean? Have you ever wondered what causes gaps in price charts and what they mean? Well, you’ve come to the right place. Just in case, a gap is an area on a price chart in which there were no trades. Normally this occurs between the close of the market on one day and the next day’s open. Lot’s of things can cause this, such as an earnings report coming out after the stock market has closed for the day. If the earnings were…

Professional Forex Trading Strategies

Nial Fuller’s Professional Forex Trading Strategies About Nial Fuller: I’ve been trading the markets for over 10 years now, and I have learned every lesson you can imagine along the way. Perhaps the biggest lesson I’ve learned is that ‘simple is better’. This is the main point I try to convey to my students and it’s why I don’t use a ton of indicators or messy trading systems. My primary mission after becoming a successful trader has been to help other traders “see the light” of simple price action trading.…

You Bought the High

Oops, You Bought the High I have seen and heard this many times from new traders. They buy right at or near the high of the day or sell at or near the low of the day and they can’t believe it. Either their emotions or trading strategy had them entering the market at the worst possible price, which is obviously not ideal. The focus of this piece is to understand why this happens and how we can correct that and also profit from it. As I mentioned above, there…

Bear Speculation

Short-Term Trading Idea FX USD/SEK – Bear Speculation: Return To Trend Line Trading opportunities for currency pair: after the Brexit, the USD/SEK switched into a correctional phase. I reckon that it will continue until August and the rate will not surpass the 8.7451 maximum. On the road to the trend line (8.1097) the sellers meet two interim levels: 8.3191 and 8.2186. Any fall will be cancelled by a close of the daily candle above 8.5510. Above here we can place a protective stop. Background In March I thought the dollar would…

Ways to Get Paid

Multiple Ways to Get Paid It still amazes me that after all these years of trading and being involved in the financial education business I never find it a challenge to write about the things concerning the markets and the challenges that traders face when attempting to negotiate them. Having just finished up a recent 3-day long Market Timing Class, it was fascinating to explore and talk through the many hurdles the students had before coming to class. Most of them decided that the only way to overcome their issues…

Fibonacci Numbers

3 Important Uses of Fibonacci Numbers An example of the power of math can be found in Fibonacci numbers. Fibonacci numbers are a sequence discovered by Italian mathematician Leonardo Fibonacci in the 13th century. The sequence is 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, and 89 on to infinity. The sequence has a series of interesting properties. The sum of any two consecutive numbers equals the next highest number. After the first four numbers, the ratio of any number to its next highest number approaches 0.618. The ratio…

Pyramid Trading Strategy

Pyramid Trading Strategy – How To Turn Small Trades into Huge Trades “Let your winners run” they always say. Great! But, HOW do I do that? How do I turn small trades into big winners? You’ve probably asked yourself this many times. As great as all these old trading aphorisms are, they do seem a bit vague and don’t really give us any specifics or details on how exactly one accomplishes the wonderful things they imply. Today, we are going to discuss how you can turn small trades into big…