Williams %R, or the Williams Percent Range, is a momentum oscillator trading indicator that helps traders identify overbought and oversold conditions. It moves between 0 and -100, showing where the current price sits relative to its recent high-low range. Think of the Williams %R indicator as a fuel gauge in a car, when the indicator is near -20, the market is "full" and potentially overbought....
The Linear Regression indicator is a trading indicator that applies statistical regression analysis to price data to identify the market’s prevailing trend. It plots a straight line that best fits recent price action over a specified period, minimizing the distance between prices and the line. This provides a “fair value” or equilibrium level for the asset. Traders often use it to spot trend...
Here is what we cover in this week's stock market update: 7 Steps to Allocating Capital in a Hot Market Like Nasdaq Stock Market Update - Global Performance Roundup Wisdom from Jesse Livermore Special announcement from Enlightened Stock trading How do you allocate capital between markets / sectors / strategies when one part of the market is so strong (i.e. Tech stocks)? Should you move more...
The Percentage Price Oscillator (PPO) is a momentum trading indicator that measures the relative difference between two exponential moving averages (EMAs). Unlike traditional moving averages, which provide absolute price data, PPO expresses this difference as a percentage of the longer moving average. This makes it an effective tool for comparing momentum across different stocks, regardless of...
The Fisher Transform is a technical analysis trading indicator developed by John F. Ehlers, a renowned figure in technical analysis, designed to convert price data into a Gaussian normal distribution. In simple terms, this transformation makes it easier for traders to identify potential market reversals by transforming price movements into a more statistically meaningful distribution. By...
A volatility stop, while not a trading indicator, is an essential stop-loss strategy that helps traders manage risk by dynamically adjusting stop levels based on market conditions. Unlike a fixed stop order, a volatility stop adapts to market volatility, ensuring that trades have enough room to develop while still protecting profits. Think of a volatility stop like using windshield wipers in a...
I’m in Singapore today, delivering a live talk on one of the biggest struggles traders face… and more importantly, how to end that struggle for good. Since I know most of you aren’t here in the room with me, I didn’t want you to miss the key lessons - because what I’m sharing today could save you years of frustration, losses, and second-guessing.The Hard Truth Most Traders Eventually DiscoverAt...
The 50-day moving average is one of the most closely watched trading indicators among market analysts, traders, and investors. It helps identify price trends by analyzing the average price level over a set time period, offering insights into whether a stock is experiencing an uptrend in progress or showing signs of strength or weakness. Many market benchmarks, such as the NASDAQ 100, use moving...
The Sinewave trading indicator is a technical analysis tool designed to identify cyclical patterns in financial markets. Unlike lagging indicators such as moving averages, which react to price action after trends have already formed, the Sinewave Indicator seeks to detect dominant market cycles before they occur. It does this by analyzing the natural rhythm of price fluctuations, much like how...
The AAII Sentiment Survey, conducted weekly by the American Association of Individual Investors (AAII), is a widely followed contrarian trading indicator in the stock market. It measures individual investor sentiment by tracking the percentage of respondents who are bullish, bearish, or neutral on stock prices over the next six months. Understanding market sentiment is crucial for traders, when...
“Your worst drawdown is always ahead of you…Will you survive trading the way you trade today?”Let’s be honest…Short trades feel like a pain.They’re harder to find.They often lose money.And they feel “wrong” because everyone tells you markets go up over time. So why do I still trade short?Diversification.When your long systems are bleeding, short systems can make money.And that saves your...
The True Strength Index (TSI) is a momentum oscillator trading indicator designed to identify overbought and oversold conditions in an asset, helping traders predict trend reversals. Developed by William Blau, the True Strength Index indicator uses a double smoothed technique to provide clearer trading signals than many other technical indicators. To make it more relatable, think of TSI as a...