Support and Resistance part 2ASupport is a price point below the current market price that indicate buying interest. Resistance is a price point above the current market price that indicate selling interest. S&R can be used to identify targets for the trade. For a long trade, look for the immediate resistance level as the target.
Technical
Advanced Trading part 2The first step should be to approach trading as a business: draft a business plan, create a budget, determine the necessary tools, and determine the markets and strategies you'll trade. Organize and keep on file all important documents: trading plans, brokerage statements, trading journals, and other resources.
Advanced Trading part 1Advanced trading encompasses sophisticated strategies, tools, and techniques used by experienced traders to navigate complex market dynamics and potentially maximize profits. It involves utilizing a range of analytical tools, including technical indicators, chart patterns, and quantitative analysis, as well as employing instruments like options and futures.
Technical Trading Technical trading is a broader style that is not necessarily limited to trading. Generally, a technician uses historical patterns of trading data to predict what might happen to stocks in the future. This is the same method practiced by economists and meteorologists: looking to the past for insight into the future.
Database Trading **Database trading**, often referred to as **algorithmic trading** or **quantitative trading**, involves using large sets of structured data to make trading decisions and execute trades automatically. It relies heavily on databases to store, process, and analyze market data (historical prices, volumes, order books, etc.) and other relevant information (like economic indicators, news, etc.). The goal is to identify patterns, trends, or anomalies that can be leveraged for profitable trading strategies.
Divergence SecretsDivergence trading identifies potential trend reversals or continuations by comparing price action with a technical indicator. When a price makes a new high or low, but an indicator doesn't confirm it, a divergence emerges, suggesting a possible shift in momentum. Traders use this information to make more informed decisions about entering or exiting trades.
Institutional Trading part 4Institutional trading refers to the buying and selling of securities on behalf of large organizations or institutions like mutual funds, pension funds, and insurance companies. These institutions manage money for a group of people, often trading in large volumes that can significantly impact the market.
Price Action Trading Price action trading is a strategy where traders make decisions based on the price movements of an asset, rather than relying on technical indicators or other external factors. It involves analyzing historical price patterns and movements to identify potential trading opportunities and predict future price direction.
PCR ( Put Call Ratio) Trading StrategyThe Put Call Ratio (PCR) is a market sentiment indicator calculated by dividing the total volume of put options by the total volume of call options. It's used to gauge whether traders are predominantly betting on a market decline (puts) or rise (calls). A high PCR suggests bearish sentiment, while a low PCR indicates bullish sentiment.
Management and PsychologyTrading psychology is the emotional component of an investor's decision-making process, which may help explain why some decisions appear more rational than others. Trading psychology is characterized primarily by the influence of both greed and fear. Greed drives decisions that might be too risky.
Technical Trading Technical trading is a broader style that is not necessarily limited to trading. Generally, a technician uses historical patterns of trading data to predict what might happen to stocks in the future. This is the same method practiced by economists and meteorologists: looking to the past for insight into the future.
Advanced Trading part 1Advanced trading encompasses sophisticated strategies, tools, and techniques used by experienced traders to gain an edge in the market, often involving complex instruments like options and futures, and multiple technical indicators. It's about developing a trading system, testing and refining strategies, and understanding market micro-structure.
RSI (Relative Strength Index)In trading, RSI stands for Relative Strength Index. It's a momentum indicator used in technical analysis to measure the speed and change of price movements of an asset. RSI helps traders identify potential overbought or oversold conditions, providing signals that can guide their trading decisions.
Institution Trading Strategies part 5Institutional traders incorporate strategies that emphasize both long-term value and diversification in their trading practices. They leverage significant amounts of capital to build portfolios diversified across multiple assets, which helps reduce risk while seeking improved market prices.
Institutional Trading part 4Institutional trading involves buying and selling securities by organizations on behalf of other investors, typically in large volumes. These traders, often working for entities like mutual funds, pension funds, and hedge funds, manage significant capital and can influence market prices. Institutional trading differs from retail trading, which involves individual investors making smaller trades for their own accounts.
Database Trading"Database trading" refers to using structured databases, often containing financial market data, to make trading decisions. This involves analyzing historical data, identifying patterns, and potentially automating trading strategies based on those findings. It can also encompass the idea of trading access to data itself on a platform similar to a stock exchange.