Indicator & Chart Trading Patterns & Tips, Trading Blogs

Monday, November 30, 2009

Weekly Stock Trader Newsletter, November 30

The Week Ahead: The Dubai World postponement of interest payments is a reminder of the still unfolding credit crisis taking shape world wide. Discounters expected to have best sales numbers this Christmas. Auto sales are released Tuesday. The Federal Reserves Beige Book comes out on Wednesday. The third quarter productivity and cost figures are due Thursday. The employment report for November will be released Friday morning.

Wednesday, November 25, 2009

Head and Shoulders Top Pattern

Head and shoulders top is a very popular chart pattern indicating bearish trend reversal. It is a long-term chart pattern and is considered among the most reliable chart patterns. The formation, with three peaks, resembles the head and shoulders of a man, and hence the name.

Trading with Slow Stochastic Oscillator

Slow stochastic oscillator is created to reduce the sensitivity of fast stochastic oscillator that gives too many trading signals. Slow stochastic oscillator is created by smoothing the fast stochastic oscillator; applying a three period moving average to fast %K. That simply means that the slow %K is exactly similar to the %D, the signal line, of the fast stochastic indicator.

Tuesday, November 24, 2009

Different ETF Sector Rotation Strategies

The great diversity of sector and broad-index ETFs allows traders to practice different sector rotation strategies. To know more about this, read ETF Sector rotation strategy and Sector ETF investing advantages and disadvantages.

Monday, November 23, 2009

NobleTrading Stock Market Newsletter, November 23

The Week Ahead: A good report that half the states added jobs in October was diminished by the fact that most were temp jobs. A shortened Thanksgiving week starts with existing home sales on Monday. The S&P/ Case Shiller Home Price Index is released Tuesday along with the consumer confidence numbers. New home sales, durable goods, and personal income data arrive on Wednesday. Markets are closed on Thursday, and a shortened trading day on Friday closes the week out.

Friday, November 20, 2009

Umbrella and Inverted Umbrella Candlesticks

Both umbrella and inverted umbrella are candlesticks indicating high decision in the market; and are often interpreted as reversal patterns. Both are single candlestick patterns having a long shadow. Umbrella candlestick is a doji having a long lower shadow (thus resembles an umbrella) and inverted umbrella candlestick is a doji having a long upper shadow.

Thursday, November 19, 2009

Ultimate Oscillator - Trading Indicator

Ultimate oscillator is a useful technical indicator developed by Larry Williams and first described in 1985. It was developed to avoid the false signals generated by many indicators when used in different time periods. This oscillator represents a stock's price action during three different time frames. Ultimate oscillator is a weighted average of three oscillators representing short, intermediate, and long term market cycles or the 7, 14 and 28 periods. The shorter periods are included within the longer period; that is, the 28 period time-frame comprises the 14 and 7 period. Thus shorter periods get more weightage.

Wednesday, November 18, 2009

What is ETF Liquidation?

ETF liquidation is simply the shutting down of an Exchange Traded Fund. The fund stops trading on listed markets at a point of time, the holdings are then liquidated to pay money to the investors holding the shares. The recent trend of ETF liquidation started in early 2008 and has resulted in the shrinking of the entire ETF market.

Tuesday, November 17, 2009

NobleTrading Weekly Newsletter, November 16, 2009

The Week Ahead: The U.S. trade deficit expanded 18% in September the biggest one month increase in 10 years while consumer sentiment took an unexpected drop. Again markets shrugged off the news as stocks rose for the second straight week. On Monday, Ben Bernanke will speak in New York City and retail sales and business inventories are released. The PPI and Industrial Production numbers are due out on Tuesday. The CPI and housing starts data are released Wednesday. The leading indicators for October come out Thursday.

Friday, November 13, 2009

Causes of Panic Selling

Panic selling is characterized by frenzied selling of investments with least regard to the prices obtained. This very often results in a great decline in the price of the instrument; panic selling is spurred by anxiety and emotion, rather than by discretion.

Thursday, November 12, 2009

Bearish Thrusting Candlestick Pattern

Bearish thrusting is a bearish trend continuation candlestick pattern indicating the continuation of an existing downtrend after a bullish day. It is a two candlestick formation which closely resembles bearish in-neck pattern and bullish piercing line pattern. Bearish thrusting is a weak candlestick pattern.

Wednesday, November 11, 2009

Andrews' Pitchfork Trading Indicator

Andrews' pitchfork, originally named Median Line Studies, is a well known trend indicator which primarily shows support and resistance levels of an existing trend. The indicator was developed by Dr. Alan H. Andrews and with its median and side lines it resembles the farmers' pitchfork. Andrews' pitchfork is a simple indicator which can be used to enter buy and sell signals as well as to evaluate overall market cycles and trend changes.

Tuesday, November 10, 2009

REIT Exchange Traded Funds

REIT exchange traded funds (ETFs) are ETFs which invest in securities of Real Estate Investment Trusts (REITs). They allow the shareholders to indirectly benefit from the profit of publicly traded REITs which hold profit from residential and commercial real estate markets. REIT ETFs are gaining in popularity and they are most noted for their above average dividend yields.

Monday, November 9, 2009

Stock Trader Newsletter, November 09, 2009

The Week Ahead: Double digit unemployment at 10.2% wasn't enough to stop stocks from rising after a previous week sell-off, but with the real unemployment rate or U-6 climbing to 17.5% can November's up start for stocks continue? More employment news comes out Monday via the Employment Trends Index for October. News flow slows ahead of Veteran's Day on Wednesday when the bond market will be closed. Then jobless claims figures arrive on Thursday and import prices on Friday.

Thursday, November 5, 2009

What is System Trading?

System trading, also known as mechanical trading, automated trading, algorithmic trading and rule based trading, is one of the two popular trading methods; the other is discretionary trading. It is the trading practice where a trading system trades on behalf of a trader. The system makes all trading decisions with respect to the rules set by the trader and the info available at the time. System traders rely on the ability of the system to find trading opportunities and to execute trades.

Zig Zag Trading Indicator

Zig Zag indicator is used by traders to reduce the "noise" in a trending security. It is very useful in finding price trends, finding support and resistance levels and in evaluating chart patterns like head and shoulders pattern, double tops and double bottoms. Actually Zig-Zag is not considered a true indicator, but as a filtering program to eliminate random price swings of a given period.

Wednesday, November 4, 2009

Bullish Concealing Baby Swallow

Concealing baby swallow is a bullish trend-reversal candlestick pattern indicating the start of a new uptrend after a downtrend. It is a four candlestick pattern comprised of all bearish (black or colored) candlesticks. Bullish concealing baby swallow pattern is a highly reliable pattern, where trend reversal occurs because of the extreme bearishness of the trend.

Tuesday, November 3, 2009

What are BRIC ETFs?

BRIC ETFs are exchange traded funds which invest in stocks associated with BRIC nations, which are Brazil, Russia, India and China. These are countries which are considered as the leaders of emerging economies because of steady and fast economic (GDP) growth in the past and are constantly exploring their high levels of natural/human resources. BRIC ETFs allow investors to passively benefit from this growth.

Monday, November 2, 2009

NobleTrading Weekly Stock Update

The Week Ahead: Investors were spooked by a falling consumer confidence number while personal income and spending data showed the biggest drop in 10 months. The data continues to flow starting Monday with pending home sales and construction spending. Auto sales arrive Tuesday as the FOMC begins a two day meeting on interest rate policy. The FOMC decision will be announced Wednesday afternoon. Third quarter productivity and jobless claims data are announced Thursday which precedes Friday's all important Employment Report.

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