TradersLog This classic momentum indicator was first popularized by George Lane. Stochastics are based on the observation that in an uptrend as prices increase, closing prices gravitate to the upper end of the price range. In downtrends as prices fall you expect prices to close at the lower end of the range. The stochastics indicator compares
The Stick Sandwich is a three candle bullish reversal formation. The pattern occurs in a downtrend, where the first candle is black and the second candle is white and trades above the close of the first day. The third candle is black and closes where the first candle did.
Jim Wyckoff Asks, “Do You Wanna Fight?” I was busy Friday morning writing my “Glance at the Markets” feature for financials, when I got an email from a trader. He said he was bullish coffee and wanted to go long. All morning long, it seemed, trader emails had been popping up on my computer screen–and
Introduced in September 1986 by the Economist magazine, the Big Mac Index has achieved notoriety as a financial indicator. The Index is a humerous guide to whether currencies are at their “correct” level – based on the theory of purchasing-power parity (PPP). Purchasing-power parity (PPP) is a theory stating that eventually, exchange rates should move
By Carley Garner The Forex market has quickly become a popular playground for speculative trading; but is it the best arena to be trading currencies? Those looking to profit from fluctuations in currency valuations have two primary trading forums, the spot market often referred to Forex or simply FX, or currency futures which are primarily