Category: MarketClub Techniques, Tips & Talk

Tips and trick from traders on how to become a better trader.

Have You Tried Using Donchian Channels?

Posted on by The INO.com Team

Donchian Channels can be useful in visualizing the volatility of a market's price action. If the price is stable, the Donchian Channel will be relatively narrow. If the price has large fluctuations, the Donchian Channel will be wider.

Using the 20 day default period, a move above the channel signals a new 20 day high. Similarly, using a 20 week period, a move above the channel would signal a new 20 week high. Markets that continuously touch or exceed the upper channel line show strength, while conversely markets that continuously touch or break below the lower channel line show weakness.

Learn how Donchian Channels can improve your trading here.

Is This ETF Laying The Foundation For A Rally In Crude Oil?

Posted on by The INO.com Team

Picking bottoms is not something one should do if you're going to be a successful trader. But looking at market that may be forming a bottom is a good exercise, and one that you should be doing on a regular basis.

I had done this before gold reversed to the upside traded over $1300 an ounce. Maybe it's time to look at crude oil and see if it's beginning to set itself up for a move to the upside.

Technically, the Trade Triangles remain negative on crude oil, so there is no reversal showing up with those technical tools.

The story is a little bit different with the RSI indicator. This particular indicator is showing that there is a big positive divergence on the Energy Select Sector SPDR ETF (PACF:XLE), and it is one that spans months.

Today I'm looking at the ETF XLE and the fact that if it closes higher for the week, it will be a positive sign. The previous week saw a very important Japanese candlestick formation call a "Dragon Fly Doji" this can be interpreted as a strong indication of reversal. It all depend's on how XLE closes this Friday. Continue reading "Is This ETF Laying The Foundation For A Rally In Crude Oil?" →

How The Oscars May Affect The Way You Look At The Markets

Posted on by The INO.com Team

This past weekend I saw a great movie titled, The Imitation Game starring Benedict Cumberbatch and Keira Knightley, both of whom are nominated for Academy Awards, as is the movie itself.

The Imitation Game chronicles the life of Alan Turing, who is largely credited with developing the computers we use today. The story revolves around the incredible work that was done at Bletchley Park in England to break the German Enigma code. At the time, the Enigma code and machine were thought to be unbreakable. The breaking of this code helped shorten and end the war. Otherwise, I would be writing this post in German and not English (I was born in England right after WW2).

If you haven't seen the movie, I highly recommend seeing it and witnessing the extraordinary genius of a remarkable man named Alan Turing.

Why would I discuss and recommend a movie when MarketClub and INO.com are financial websites dealing with stocks and futures? The reason I bring this up is because I wanted to share with you some math today that can help you in the market.

Now don't worry this is not high-level mathematics, it has more to do with a remarkable sequence of numbers known as the Fibonacci sequence. Continue reading "How The Oscars May Affect The Way You Look At The Markets" →

Gold Is Sending A Very Strong Message, Are You Listening?

Posted on by The INO.com Team

Hello MarketClub members and friends of MarketClub everywhere! Today, I have a brief market update on the general market and an in-depth analysis on gold.

2015 has not started off too well for the US equity markets, while the reverse seems to be true for the action in gold (FOREX:XAUUSDO). What's going on? Oil continues to slip, which most economists thought would be good for the economy, but it does not seem to be helping the market. This brings me to my next thought...

Do you know about the "January Barometer"? Since World War II, if the market closes down in January, the average price change was usually flat in the remaining 11 months. So while certain stocks may do very well overall if the market closes down this month, look for a less than stellar year.

As you can see, while stocks have been swooning, gold has actually been on the move to the upside. As I write this, gold is up almost 3% and we are only 6 days into January!

Take a look at the chart and you can see that gold has almost completed an important technical formation known as a "head and shoulders bottom", one of the most reliable formations in your technical arsenal.

A higher close today clearly breaks over the the all important "neckline" resistance level. Once over the "neckline," I can see gold moving based on the head-to-neckline measurement up to the $1,330 to $1,340 level.

Wishing you all the very best in 2015.

Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

The 5 Keys To Trading And The 1 Key To Your Success

Posted on by The INO.com Team

Like life, there are certain trading rules that you have to follow if you want to be successful. The following 5 trading rules and the 1 key to success are used in one way or another by every professional trader I know.

For those members that have been with us for a while, you may have seen these rules before. For those members who have recently joined MarketClub, you will find these 5 trading rules and the 1 key to success to be an important building block to your future success.

Rule #1: Attitude

Attitude is so important in your approach to investing and trading.

Rule #2: Game Plan

Trading without a game plan is like crossing the ocean without a compass, you are going to get lost and run into a lot of problems without a game plan.

Rule #3: Trend

I'm sure you have heard the expression, "the trend is your friend." Well, truer words were never spoken in trading. This article will show you how to quickly determine the trend in any market. Continue reading "The 5 Keys To Trading And The 1 Key To Your Success" →