Trading Articles

How to Trade Stocks Profitably with Trend Lines

Trend lines are one of the most basic technical analysis tools. The are the foundations of any chart patterns and the basis for most chartistic trades. Today we will teach how trend lines are identified and trade, for maximum profits.

What Are Trend Lines
Trend lines are Support and Resistance lines. Unlike traditional Support and Resistance levels which are horizontal, trend lines are sloped - Rising or Falling.

Trend lines

Trading With Pivot Points

Pivot Points are an efficient method of predicting support and resistance areas for the trading day, using the close\high\low\close of previous days. It is one of the few strategies that project support and resistance areas that was not yet respected by price. In the following article we will explain the formula for calculation and trading with pivots points.

Calculation of Pivot Points
Central Pivot Point (P) = (High of previous day + Low of previous day + Close of previous day) / 3
First Resistance (R1) = (2*P) - Low
First Support (S1) = (2*P) - High

Lessons From Legendary Stock Traders: Michael Marcus

Michael Marcus is undoubtedly a legendary trader. Turning his life savings of 30,000$ into 80M$, he has earned his place in the Olympus of trader. He also traded for the legendary Commodities Corporation (later to be purchased by Goldman Sachs). In this article I present excerpts from his interviews in 'Market Wizards' book, by Jake Schwager.

Predicting and Trading Breakouts: Predicting Breakouts for Early Entry

Breakouts are an critical issue in trading that each trader confronts in some stage of his or her trading career. The need for a strong and conclusive technique to trade and predict breakouts is of high importance due to the frequent percentage of fakeouts in last years, which happen even more in intra-day trading.

Breakouts: Definition
A breakout occurs when price goes above or below a certain psychological level. Price should go above a Resistance level or below a Support level to define the movement as breakout.

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