Fundamental & Technical Trading Blog, Technical Trading Tools

Fundamental and Technical Trading - Comparison

Fundamental analysis and technical analysis are the most common trading strategies adopted by position traders and investors. Both types of strategies often offer reasonable profits and limit risks, when interpreted and practiced correctly. Here is a comparison between trading/investing based on fundamental analysis and on technical indictors.

Fibonacci Sequence and Trading

Fibonacci sequence was discovered by Fibonacci (actual name Leonardo Pisano), an Italian mathematician in early 13th century. The series is very simple where a number in the series is the sum of preceding two numbers (1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144ЕЕ).

Things to Consider When Choosing a Forex Broker

Within the last two or three years online forex trading has became very popular and now there are many online forex brokers providing trading account and platform. Here are some things to consider when choosing an online forex broker.

NobleTrading Weekly Market Letter, May 27, 2008

The Week Ahead: The DOW had its worst week since February as housing prices declined nationally by 8%, gas prices hit new records, and word that more write-downs are coming at some banks and investment houses. Watch for the Case-Shiller Home Price Index on Tuesday along with new home sales figures and consumer confidence. Durable goods numbers are due Wednesday, and preliminary GDP for Q1 are due Thursday. Personal income and spending are released Friday along with May's Univ. of Michigan Consumer Sentiment final reading.

Parabolic SAR (Stop and Reverse)

Parabolic SAR or Parabolic Stop and Reverse or simply Parabolic is a time/price stock market indicator, which is very a useful trading tool in a trendy market. This indicator is widely employed for placing stop-loss orders and to generate buy and sell signals. Parabolic SAR only works when market/stock is on a trend, not in choppy and stagnant markets.

Weekly Stock Market Information Letter, May 19, 2008

The Week Ahead: Optimism that earnings are poised to move higher are propelling stocks despite consumer sentiment at its lowest level since 1980, oil over $126, and housing inventories at an 11 month supply. Leading economic indicators on Monday may give further clues. Tuesday, the Producer Price Index is due while Wednesday the FOMC Minutes will be released. Housing data on Thursday and Friday include the Housing Price Index and the existing home sales for April respectively.

Gartley Trading Pattern

Gartley trading pattern or Gartley butterfly pattern is considered one of the most reliable trading patterns to identify a trend and to find the entry/exit point. It was outlined in 1935 by H.M.Gartley in his book СProfits in Stock MarketТ. Gartley is a complex pattern, which requires good trading knowledge and experience to be cited and utilized. It can locate both short-term and long term trading trends; and thus beneficial for all types of traders.

Wolfe Waves Trading Pattern

Wolfe waves are trading patterns which occur naturally in all financial markets. Wolfe waves are considered as one of the most reliable trading pattern for finding the trends, supporting and resistance levels, possible equilibrium price range and the breakouts. Wolfe waves are created as a result of both short-term and long-term trading, as thus can be useful to any type of traders trading any product.

Strategies to Profiting from Weak US Dollar

Fall in dollar price compared to other foreign currencies can sufficiently affect a normal portfolio. Weak dollar triggers a chain reaction in the countyТs economy, which includes increase of trade deficit and national deficit, increase of imported product price, interest rate hike, etc. However investors can also hedge against their portfolio value decrease by following many strategies.

Weekly Stock Market Letter, May 12, 2008

The Week Ahead: The price of oil reached new highs daily for five straight days, and the lower trade deficit in March reflect a slowdown in the economy with consumers cutting back. Reports to watch are Tuesday's retail sales, import prices, and business inventories. Wednesday brings the Consumer Price Index while Thursday the industrial production and jobless claims numbers are released. The University of Michigan's Consumer Confidence numbers as well as housing starts are announced Friday.

What is Systematic Risk?

Systematic risk also known as systemic risk, market risk and un-diversifiable risk is risk which applies to whole market or market segment. It is opposite to idiosyncratic risk which applies to specific stocks or other financial products. Often systematic risk results in declining of total portfolio investment value as all/most portfolio investments declines in value.

Different Ways to Invest in Gold

Gold is considered as the major hedging investment against inflation and economic crisis. The price of gold is some what steady compared to other investment options. There are many different options available for investing in gold.

What is Capital Growth Strategy?

Capital growth strategy is an aggressive asset management strategy, which aims at maximizing value of the capital or asset. It is a long-term strategy in which the portfolio is mainly constituted of equities. Capital growth strategy is usually a high-risk high-profit strategy which requires extreme money management and discipline.

Ratios for Good Stock Picking

Determining the strength of the company and growth possibilities of its stocks are important steps in stock picking with a long-term profit goal. Traders and investors use many technical indicators and ratios for this purpose. Below are some of the important ratios to be considered when picking good stocks.

NobleTrading Stock Market Letter, May 6, 2008

The Week Ahead: Employment fell for the 4th straight month in April, but the decline was smaller than expected. Wage growth continues to stagnate as well as consumers cut back on spending. Further evidence could be in the Non-Manufacturing Index for the service sector on Monday. Also, watch the consumer credit numbers and pending home sales on Wednesday. The chain store sales figures and wholesale trade inventories will be out on Thursday. The March trade balance will be released on Friday.

Commodity Channel Index or CCI Indicator

Commodity Channel Index (CCI) is one of the most popular momentum indicators used by traders to identify trend formation and ending, and/or overbought and oversold conditions. CII was originally developed by Donald Lambert in 1980 for commodity traders, but is now widely used by all traders trading all financial instruments. Commodity channel index is considered a better trading tool when used in conjunction with other indicators.

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