In technical analysis a divergence pattern is a signal on a chart that occurs when the price of an asset is moving differently than a technical indicator. A divergence can show that the chart is becoming bullish and the chart may be beginning an upswing or uptrend in price action
The first step to becoming a better trader is abandoning you own opinions, predictions, and emotions in favor of trading the price action itself. Uptrends, downtrends, and trading ranges on charts become more clear when all personal biases are removed.
A trading method is a specific process and theory for approaching the financial markets in an established way to make money. A trading method brings orderliness of thought and behavior for planning and implementing a trader’s action for the philosophy behind entries and exits.
Risk management is the specific parameters traders put in place when trading to limit the losses on positions that go against them. Stop losses, position sizing, and trailing stops are all ways to manage risk in trades.
Ed Seykota is a trend following trader that uses reactive technical analyses through quantified trading signals to capture large profits during trending price action. He has parameters for proper position sizing, volatility filters, and optimizes his strategy for large wins and small losses.
Most traders never succeed because they trade without a quantified system with an edge, they trade too big, and they trade based on their emotions, ego, and predictions not price action. This is the opposite of what is needed to be a successful trader. A successful trader uses a quantified system with an edge, trades it with proper position sizing, and follows it with discipline regardless of how they feel or what their opinion is.
Here are twenty interesting facts that research has discovered about millionaires that you may not know or believe to be true.
An autodidact is a self-taught person. They are people that know how to first quantify what they want to learn, then identify the best sources to learn what they need know from, and finally do the work to learn what they need to know. Putting their new found knowledge into practice to achieve goals is … Read more
In technical analysis the triple top chart pattern can be a possible signal for a reversal lower in price.
The doji star is a neutral signal that occurs when a single candle has opening and closing prices that are close to the same.