Trading Tips

The Advance-Decline line is a fabulous market indicator that can help you confirm trends and predict reversals. It does this by basically “taking attendance”: How many stocks are showing up for the rally? If it’s just a few stocks doing all the work, the bullish trend probably isn’t that strong, but if participation is widespread, [...]

Are you familiar with the Volume By Price Indicator? If not, you’re not alone: VBP is unknown by most, but it is a great indicator of support and resistance — arguably better than traditional support and resistance lines. Volume By Price is simple, straight-forward, and easy to use. The principle is that it looks at [...]

The world of technical indicators is dominated by grizzled veterans who got their starts in the 1960s and 70s. But among these “middle-age” indicators, there is one promising young buck, and its name is Aroon. Invented in 1995, “Aroon” is actually a word in the ancient Indian language of Sanskrit, which means “dawn’s early light.” [...]

Options offer traders lots of… well, options! Call options provide the opportunity to leverage your profits when a stock goes up; put options allow you to make money as a stock goes down. What’s more, you can even write covered calls on stocks that you hold in order to provide low-risk income, and you can [...]

As is often repeated in TradingTips.com videos, you have to use more than one technical indicator to inform your trades. If a stock has a bullish MACD, for example, you also need to check to make sure it’s not in some sort of bearish chart-pattern formation, or that it doesn’t have a bad-looking PPO, etc. [...]

In early July, the market experienced a Black Cross — also known as a Death Cross. Should you be concerned? This video seeks to answer that question. But before we can answer that, we have to know what a Black Cross is… And what about its inverse, the Golden Cross? This video looks at Black [...]

Last week, we looked at the Hindenburg Omen, and in doing so, we touched on another obscure technical indicator: The McClellan Oscillator. The McClellan Oscillator is a unique and easy-to-read statistic you can check at the end of every trading day to give you direction moving forward. The only problem is, you need to understand [...]

The Hindenburg Omen. The name alone conjures up images of catastrophic disaster, of everything going down in flames. But what is this indicator and what does it really predict? More importantly, is it accurate? In this TradingTips.com video newsletter, we’ll answer these and other questions. The Hindenburg Omen has been all over the news lately, [...]

Volatility is every stock trader’s best friend. As long as stocks are moving in one direction or another — or both! — there is the potential to profit. It’s when stocks are standing still that traders get killed. There are ways to make money in sideways markets — such as writing options contracts — but [...]

Moving Averages are useful for filtering out noise and visualizing a stock’s true trend. The 10-, 30-, 50-, and 200-day moving averages also tend to act like support and resistance, too, so it’s always smart to have at least one of them as an overlay on all of your charts. But how about more than [...]