Category Archives: Trading Strategy

A lesson on the importance of fundamental awareness for a technical trader

By Paul | Published: October 31, 2009
I paid a price last week in trading EURCHF for not knowing the fundamental analysis about the currency pair.  First of all, here’s how my trade played out.  The support between 1.500 and 1.510 is apparent if you look at Figure 1.  So I went long as shown in Figure 2 (second blue triangle from [...]
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Adapting to changing market volatility with a statistical position size table

By Paul | Published: October 29, 2009
We know that prices can go up or down.  We also know that the quality of these ups and downs can be very smooth or very choppy.  As such, it’s not surprising that the trend and volatility of a market form the two universal characteristics of a price action.  No matter which market you trade, [...]
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Finding in-play stocks based on earnings release date

By Paul | Published: September 11, 2009
One of my trading shortcomings which I’ve lamented is the lack of an automated method to pick and choose which stocks to play.  I’ve experimented with Yahoo’s free stock screener a while ago but find that the heavy dependence on basic statistics impractical.  I’ve also considered using StockFetcher.com but don’t like the use of indicators [...]
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TRIN and support/resistance day trade strategy

By Paul | Published: January 30, 2008
Read this from a commenter on BillCara.  I am posting it here for record for later analysis. Stu: If I may..dont guess the market direction.!! Just trade with the trend between support and resistance zones. Let the market tell you direction…dont guess…trade with a ‘no mind’ (thats from the last samurai movie):). i.e.e dont think [...]
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Double Top/Bottom and Stochastic Divergence ShowMe

By Paul | Published: January 29, 2008
Added a simple ShowMe to my fast period chart of my day trading workspace for scalping. The idea here is that often times, the price would top/bottom at some points and then change direction momentarily for a breather. This doesn’t necessarily signal a trend reversal, but more often a quick retracement of the price for [...]
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Short term retracement with stochastic strategy

By Paul | Published: January 24, 2008
if the trend is strong (ADX > 30 or something), catch a retracement on Stochastic crossing signal line IF it’s not too far down. Maybe Stochastic between 85 and 50 for long. This could complement the Keltner channel, Stochastic, CCI strategy because it would have exited on any retracement.
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