Trading Tips

There are no “get-rich-quick” schemes in stock trading, no matter what anyone tries to sell you. In order to make it, you have to do your research, learn, make mistakes, learn from those mistakes, and continually build on your knowledge. Similarly, there’s no way to “learn it all” about stock trading in one day, one [...]

“Shooting star.” This chart formation has a fancy name, but it’s not at all complex. In fact, it is a single-candlestick formation. Best of all, it is an incredibly reliable predictor of a bearish reversal. Shooting stars are pretty easy to spot — if you know what you’re looking for. There are a bunch of [...]

This is the 52nd episode of TradingTips.com’s Trading Tip of the Week. Over the past year, we’ve looked at dozens of technical indicators, most of which are explicitly intended to be used in conjuction with one or more other technical indicators for increased reliability. But when you start cross-referencing models, you almost always end up [...]

Reading stock charts isn’t always as easy as A, B, C. In fact, a lot of times it’s more like trying to decode some ancient language in a foreign script. That’s because, as with many dead languages, CONTEXT is paramount — and that’s especially true when comparing hanging men and hammers. Hanging men and hammers [...]

The recent stock-market crash caught most traders by surprise. True enough, many fundamental analysts and economists have long-been warning about the market being overdue for a correction, but none of them could say exactly when it was going to happen. Well, all of the eggheads were outsmarted by a simple technical indicator — the PPO, [...]

People think candlesticks are simple, and they’re right. But just like a good card game, candlesticks take a minute to learn and a lifetime to master. It’s truly amazing how much information is contained in such a small package. In this episode, we look at “engulfing lines,” which are yet another very strong candlestick indicator. [...]

Babe Ruth hit 714 home runs without steroids or modern training methods. NASA put men on the moon in 1969, when computers were the size of auditoriums. And heck, we still don’t really know how the Egyptians built the pyramids. The point of all this is that sometimes “old fashioned” ways of doing things are [...]

Have you ever spotted a hot stock in a bullish trend and jumped in after a big breakout only to see the stock immediately reverse to the downside and lose you some serious money? If not, maybe you’ve been lucky, because this has happened to the best of us. But what if I told you [...]

A couple of weeks ago we looked at the Force Index, which helped you determine the strength of a stock’s current trend. But what if you’re unable to determine if a stock is TRENDING at all? Then Force Index is of no use to you. This is where ADX — Average Directional Index — comes [...]

It’s pretty easy to tell which direction a stock is trending at any given time. In fact, if this were the only key to making money in the stock market, anybody could do it. The problem is, you don’t necessarily know if the stock’s CURRENT trend is going to continue, or if it might reverse [...]