Money Making Candlestick Formations Candlestick Line Candlestick Line Candlestick lines and charts — traditional Japanese charts whose individual lines look like candles, hence their name. The candle- stick line is comprised of a real body and shadows. See “Real body”…
RSI – Relative Strength Indicator Developed by J. Welles Wilder and introduced in his book, New Concepts in Technical Trading Systems, the Relative Strength Index (RSI) is an extremely popular momentum oscillator. The RSI compares the magnitude of a…
In this example Microsoft is charted using 20 day Bollinger bands at 2 standard deviations. Contracting bands warn that the market is about to trend: the bands first converge into a narrow neck, followed by a sharp price movement. The…
Again, although Bollinger Bands can help generate buy and sell signals, they are not designed to determine the future direction of a security. The bands were designed to augment other analysis techniques and indicators. By themselves, Bollinger Bands serve two…
Again, this indicator consists of three bands encompassing a security’s price action. Defaults are: 1. A simple moving average in the middle, usually 20 days for intermediate investing. 2. An upper band ( 20 day SMA plus 2 standard deviations)…
following are a few rules that serve as a good Beginning point. 1. Bollinger bands provide a relative definition of high and low. 2. That relative definition can be used to compare price action and indicator action to arrive at…
Developed by John Bollinger, Bollinger Bands allows users to compare volatility and relative Price levels over a period time. Bollinger Bands are envelopes which surround the price bars on a Chart. They are plotted two standard deviations away from a…
QUICK REFERENCE GLOSSARY ON FUTURES AND OPTIONS FUTURES TERMINOLOGY SPOT PRICE: The price at which an asset trades in the spot market. FUTURES PRICE: The price at which the futures contract trades in the futures market. CONTRACT CYCLE: The period over which a contract trades. The index…
ADVANTAGES AND BENEFITS OF COVERED CALL STRATEGY ‘The biggest advantage of covered call strategy is it increases and improves the odds of successful trading. Another biggest share tips benefit is that it can be implemented in two of the three possible stock…
SOME STRATEGIES FOR WRITING COVERED CALLS STRATEGY 1 This is the strategy that works best in India since options of fundamentally strong stocks continue to have some time premium left till the last day. You should write at-the-money calls since…