Tag: bollinger bands

Advanced Technical Indicators - Bollinger Bands

Posted on by The INO.com Team

If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. We have gotten such a great response from some of his past posts that he has agreed to share one more of his favorite trading tips as a special treat to our viewers. Determining the direction of the market can be tricky and just plain confusing at times, but Larry’s expert opinion keeps it simple. If you like this article, Larry’s also agreed to give you free access to his favorite technique.

Let's take another look at a more advanced technical tool - Bollinger Bands. These were developed by John Bollinger in the 1980s. In simple terms, they use a simple moving average and standard deviations to give a different perspective on potential highs and lows. Continue reading "Advanced Technical Indicators - Bollinger Bands" →

A basic guide to choosing technical indicators

Posted on by The INO.com Team

Today's Guest Blog post comes courtesy of Kathleen Brooks who is a UK and EMEA research director at Forex.com based in London. She uses both fundamental and technical methods in her analysis. She provides daily research and market updates as well as a weekly webinar on market themes. She is a regular contributor to Yahoo Finance, Reuters Great Debate Blog as well as a host of other international publications. She is often quoted in the global financial press and is a regular contributor on business TV including CNBC, CNBC Arabia, the BBC and Bloomberg. She started her career in finance at BP where she worked first as a business analyst in its trading division and then as a trading analyst in its foreign exchange dealing room. Click here to find out more about Forex.com.

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Navigating your way through the forex market is a bit like trying to find your way out of a deep, dark cave with only a flicker of a match. To get out of the cave you need a torch, and luckily for the retail trader there are figurative torches in the foreign exchange markets too.

One such beacon is technical analysis, which can make life a lot easier. Moving averages, relative strength indicators, Bollinger Bands, Fibonacci retracements, MACD's and Ichimoku Cloud charts are just some of the technical indicators that are widely used in the forex markets as buy and sell signals.

The Simple Moving Average Continue reading "A basic guide to choosing technical indicators" →

Do You Recognize the 3 Early Warning Signs of a Market Reversal?

Posted on by The INO.com Team

Today we have a special guest blogger, Price Headley of Big Trends. Price is a Traders Hall of Fame inductee and is a regular contributor on CNBC, Fox News and Bloomberg Television, and in a variety of print and online financial news outlets. Today Price will share some of his insight on a few indicators he looks for to signal a possible market reversal. Be sure to comment with your thoughts and check out Prices' new Coaching Kit at BigTrends.
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In our 20 years plus of option trading and educating investors, there are certain factors that we’ve seen time and again can help foretell when the market is on the verge of a trend momentum switch.  As part of our complimentary Coaching Kit, we are highlighting how to pinpoint market reversals – part of the Coaching Kit includes a comprehensive Market Timing course that you can use to build on today’s article. Continue reading "Do You Recognize the 3 Early Warning Signs of a Market Reversal?" →

Short Term Trading With Bollinger Bands

Posted on by The INO.com Team

Today's guest is Markus Heitkoetter, CEO of Rockwell Trading and author of “The Complete Guide to Day Trading.”  Today Markus is going to show you how to use one of our favorite indicators, Bollinger Bands, in short term trading. Be sure to comment with your thoughts on Bollinger bands and some techniques that you use in short term trading.

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Bollinger Bands are a great indicator with many advantages, but unfortunately many traders don't know how to use this amazing indicator. Before I show you how I use it, let's quickly review what exactly Bollinger Bands are.

Bollinger Bands consist of three components:

  • A simple moving average
  • TWO standard deviations of this moving average (known as the Upper and Lower Bollinger Band).

If you look at the following images you see the Moving Average displayed as a solid blue line and the Upper and Lower Bollinger Bands as dotted blue lines. (In MarketClub the lines are red.)

So what are the characteristics of Bollinger Bands?

Continue reading "Short Term Trading With Bollinger Bands" →

A Simple Strategy for Day Trading

Posted on by The INO.com Team

Today I'd like to welcome Markus Heitkoetter from Rockwelltrading.com. Markus' article below dives into what most traders just don't get. Enjoy the article, comment below, and visit Rockwelltrading.com to see what Markus's next webinar event is.

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With dozens of indicators, hundreds of chart patterns, and thousands of combination's between the two, it’s no wonder that many traders struggle to find and enter trades with confidence. “Analysis paralysis” is a common problem for many traders, and it can even keep experienced traders from taking good trades. It’s easy to plot a dozen indicators on your chart, but what are they really telling you? Are you able to make split second decisions when there is an opportunity in the market? If not, it’s probably time to simplify your trading.

One of the easiest ways I’ve found to keep things simple, and avoid being a victim of "analysis paralysis", is to use a strategy that I call, "The Simple Strategy".

Continue reading "A Simple Strategy for Day Trading" →