Posts

How and Why We Must pay attention to Volatility

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Hello Traders When we analyze a market, it is very important to take  into account  its volatility for the different time frames and times where we plan to trade. If volatility is too low we may have little or no chance at all of entering and leaving the market in a timely way with our expected targets and stops . If volatility is too high, we will surely have many opportunities for trades, but possibly the Stop needed will be much higher than expected. Let's see now how to measure volatility using the ATR (Average True Range) indicator The Range of a bar is the distance between its maximum and minimum price. The True Range includes the gap that may exist from the previous bar, therefore the  True Range  is equal to or slightly higher than the Range. The ATR is the  True Range  Average in the last N bars. In this example we see the ATR (14) on a Crude Oil & Euro Futures 5 Minutes Charts.     As we see, the ATR ...

Trading Overbought and Oversold Bars with Stochastics

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Defining a Trade Setup using Stochastics Using the Stochastic Indicator we can define several simple and easy Trade Setups. With the Ninjatrader Stochastics Indicator we can define Overbought and Oversold Bars when the K line is above or below these levels. The D line is an average of the K line, so the closest is its period to 1, the closest this line will be with the K. With a period of 1, both lines overlap one each other. We can use 2 different methods to trade with Stochastics ; Using both K and D lines ; we watch for Crossover of these lines, and take an entry depending where the crossover happened ; if it was on the overbought, we have a sell. If it was on the oversold, then it is a buy signal. Using only the K Line ; we wait for the K line being on the overbought/oversold area and trying to get out... Example using Method 1 ( K vs D Crossover :  TIS_STO_XO ) Example using Method 2 ( TIS_Reversal ) Watch this YouTube Video for more i...

2016 Live Trading Webinars

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2016 New Trading Webinars Session #1 ( EMA Crossover ) August 18, 2016 On this 1st webinar we start explaining a classic and easy Setup ; The Crossover of 2 Moving Averages To trade this Setup you only need an EMA, an indicator present on all Trading Platforms. On this video we learn how to select a pair of moving averages and how to use the threshold to avoid having fake signals on slow moving markets or sideways conditions. This Setup can be Created, Visualized and its Signals automated with Markers Plus for Ninjatrader. Learn More about Markers Plus :

Trade Setup using 3 Exponential Moving Averages

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Hello! Friends! We meet again to share 2 easy Setups using 3 EMA's:  ( valid also for other averaging lines like HMA, SMA, etc) . We know that the EMAs are the most basic indicators They can have a   Slow ( S) ,   Medium ( M) and   Fast ( F)  Period Example:    F 10  /    S 50 /  M 20 1) Set Up: Enter the Market when the 3 lines align in same direction and order. 2) Set up: The Crossover of Lines  F ( Fast )   with  M  ( Medium) are filtered according to the   S ( Slow) line position . Este cruce alcista esta filtrado porque esta por debajo de la linea negra. Find more details on this YouTube Video :