Trade Exits

There is another old saying: “you can never go broke taking a profit.” The Turtles would not agree with this statement. Getting out of winning positions too early, i.e. “taking a profit” too early, is one of the most common mistakes … Continued

Trade Stops

here is an expression that, “There are old traders; and there are bold traders; but there are no old bold traders.” Traders that don’t use stops go broke. The Turtles always used stops. For most people, it is far easier to … Continued

Trade Entries

The typical trader thinks mostly in terms of the entry signals when thinking about a particular trading system. They believe that the entry is the most important aspect of any trading system. They might be very surprised to find that … Continued

Position Sizing

Position sizing is one of the most important but least understood components of any trading system. The Turtles used a position sizing algorithm that was very advanced for its day, because it normalized the dollar volatility of a position by … Continued

Pivot Points

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Floor Pivot Points The floor pivot points, presented in the first column of the calculation results table, are the most basic and popular type of pivots used in Forex trading technical analysis. The pivot point is interpreted as the primary support/resistance level — the point at which the … Continued

Average True Range (ATR)

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Average true range (ATR) is a technical analysis volatility indicator originally developed by J. Welles Wilder, Jr. Wilder designed ATR with commodities and daily prices in mind.  Commodities tend to be more volatile than stocks.  You have days which are … Continued

Common Trading Indicators

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Accumulation Swing Index The Accumulation Swing Index (Wilder) is a cumulative total of the Swing Index. Interpretation: The Accumulation Swing Index may be analyzed using technical indicators, line studies, and chart patterns, as an alternative view of price action. Parameters: … Continued

Bollinger Band Indicator

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Bollinger Bands are lines plotted in and around the price structure to form an “envelope.” It is the action of prices near the edges of the envelope. Bollinger Bands are based upon a simple moving average. This is because a … Continued