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Showing posts from February, 2023

Unlocking Trading Success: The Truth About Technical Indicators

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by: Ivan Cavric Technical trading indicators are a popular tool for traders in the financial markets. These indicators are mathematical calculations based on price and/or volume data that are used to identify trends, patterns, and potential trading opportunities. With so many indicators available, traders often wonder if there is a best technical trading indicator and how to use it successfully. The answer to whether there is a best technical trading indicator is no. Different indicators work well for different traders and market conditions. It's important to understand that no indicator is perfect and they all have their limitations. The key to using technical indicators successfully is to understand their strengths and weaknesses, and to use them in conjunction with other tools and analysis techniques. One popular technical trading indicator is the moving average. This indicator calculates the average price of an asset over a specified time period and plots it on a chart. Trader

An Introduction to Price Charts and Technical Indicators for Traders

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by:  Ivan Cavric Price charts are an essential tool for analyzing market prices during specified time frames. These graphs can be presented in various formats, such as line charts, bar charts, or candlestick charts. Line charts are simple to read, showing only closing prices, making it easy to identify broad patterns and trends, although they lack detailed information. Bar charts indicate the price spread over the period, where longer bars signify a greater difference between the high and low prices. Candlestick charts are similar to bar charts but use color-coding, where green candles indicate a rising price and red candles represent a falling price. To supplement the data gathered from price charts, traders often use technical indicators to analyze market movement. These indicators are grouped into categories such as trend, strength, volatility, and cycle indicators. Some commonly used indicators include the Average Directional Movement Index (ADX), Moving Average Convergence/Diverge

The Power of Combining 6-Period and 18-Period Smoothed Moving Averages for Short-Term Day Trading

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by: Ivan Cavric Short-term day trading involves buying and selling securities within a single trading day. As a result, traders must be able to quickly identify trends and make informed decisions to maximize profits. In this fast-paced environment, using a moving average can be a helpful tool to assess market trends and make informed decisions. One of the most popular and effective moving averages used by short-term traders is the 6-period and 18-period smoothed moving average. This combination is considered the best because it strikes a balance between sensitivity and smoothness. The 6-period moving average is a highly sensitive indicator that can quickly detect short-term price changes. This is especially important for day traders who are looking for quick profits. However, a highly sensitive indicator can also lead to false signals, causing traders to make poor decisions. The 18-period moving average provides a smooth representation of the trend and eliminates short-term fluctuati

CFDs: A Closer Look

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by:  Ivan Cavric CFD, or Contracts for Difference, are financial derivatives that allow traders to speculate on the price movements of various underlying assets without actually owning them. CFDs are a type of agreement between two parties to exchange the difference in value of an underlying asset from the time the agreement is entered into until it is closed. They are popular because they offer several advantages over traditional forms of investment. One of the biggest advantages of CFDs is the flexibility they offer. Traders can take short positions, which allow them to profit from falling prices, as well as long positions, which allow them to profit from rising prices. This flexibility is particularly useful for traders who believe that a particular market is about to fall and want to profit from it. Another advantage of CFDs is that they are margin products, which means that traders can gain exposure to a much larger investment than they would otherwise be able to with their own ca