Written by Trader Shane on October 26th, 2010
Peruvian forex traders get cheap lattes!
A great site called good.is came up with a clever little picture a few years back to explain forex through the commodity of a Starbuck’s latte as opposed to the dollar.
Continue Reading...Written by admin on October 25th, 2010
Keltner Channel
A volatility based technical analysis ‘envelope’ indicator that measures the movement of stocks in relation to an upper and lower moving-average band. Used to predict the trend of the market. Some examples of it’s use are: An overbought signal occurs when prices move above the upper band, and an oversold signal occurs when prices move [...]
Continue Reading...Written by admin on October 25th, 2010
Inside Market
The highest quoted bid and the lowest quoted offer (ask) price among competing market makers in a security. This is the best bid and offer prices, also known as the market maker spread.
Continue Reading...Written by admin on October 22nd, 2010
How to Make Consistent Profits Futures Trading
The issue of direct access is an important one and it becomes more important the more short term your trading is. The market can change from a state of seeming paralysis to one of shocking volatility and activity in a flash. The length of time it takes between you deciding to enter an order and [...]
Continue Reading...Written by admin on October 19th, 2010
Gap
When price makes a sharp move up or down with no trading occurring at the in between price levels causing a break or “Gap” on the chart. There are four common types of gap patterns, breakaway, common, continuation, and exhaustion. Gaps can be created by factors such as regular buying or selling pressure, earnings announcements, [...]
Continue Reading...Written by admin on October 19th, 2010
Ease Of Movement
A technical analysis, momentum indicator used to show the relationship between the rate of price change and volume. This indicator attempts to identify the amount of volume required to move prices. Generally a value greater than zero is an indication that the stock is being accumulated (bought) and negative values indicate selling pressure. A high [...]
Continue Reading...Written by admin on October 19th, 2010
Cancellation
When a trader has an order at either the broker or exchange, and issues an new order to remove the resting order. During the time the cancel order is placed and the resting order actually being removed by the broker or the exchange, the cancel order will be in a pending state awaiting confirmation. If [...]
Continue Reading...Written by admin on October 19th, 2010
Algo
A slang term meaning “Algorithm“, “Black Box“, or “Automated Trading System.” Derived from the fact that they are based off a method or set of rules for accomplishing a task in a certain number of steps.
Continue Reading...Written by admin on October 19th, 2010
Algorithm
A method or set of rules for solving a problem expressed as a finite sequence of steps. Algorithms are used for calculations, processing data, and even cooking (i.e. recipes.) Each algorithm is a list of well-defined instructions for completing a task. Starting from a set beginning point, the instructions describe a computation that proceeds through [...]
Continue Reading...Written by admin on October 19th, 2010
High Probability Trading Strategies – Daytrading Tactics
Day trading is the most active form of trading having maximum trading risk. It requires real-time news, quotes and charts. Day traders practice many complex strategies for getting profit from the market. Here are some simple tactics which can minimize trading losses, especially beginners. Try to incorporate them in your daily trading plan and i [...]
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