Some traders watch the daily charts because they are swing traders who don’t want to wait too long to complete a trade. Some traders prefer to watch the weekly charts because of less noise of price movements and more predictable patterns. Then, traders use multi-time frame analysis to watch both charts. Did you know that … Read more
TopStep is just one of many online prop trading firms. A proprietary trading firm trades the financial markets using its own capital to make a profit. Because retail traders are often under-capitalized and don’t want to risk their own money, these firms will provide funding for traders to trade with. The traders do not risk … Read more
A stock with good relative strength simply means that it is performing better than the general market. A stock with poor relative strength means it is under-performing relative to the market. By market, we mean the board stock market in general. The S&P 500 is often used as the benchmark because it consists of 500 … Read more
High-yield covered call ETFs have surged in popularity, offering attractive income streams in a market where investors crave yield. However, many investors fail to fully grasp these products, which comes with significant risks. While the allure of double-digit annual yields may seem too good to pass up, a closer examination reveals structural challenges that can … Read more
In part 1, we learned divergences and hidden divergences in an uptrend. This article will show examples of divergences and hidden divergences in a downtrend. Contents When looking for divergences in a downtrend, we examine the valleys because they represent pushes made by the bears. Consider the following downtrend in this daily chart: For the … Read more
Divergence in trading refers to the condition when there is a discrepancy between a stock’s price action and its momentum indicators (most commonly the RSI and the MACD). First, we need to fully understand the concept of conventional divergence before learning the new subject of hidden divergence. In both cases, you must have a trend … Read more
Rolling options is a powerful tool in a trader’s arsenal, allowing for trade adjustments to manage risk, extend duration, or optimize profits. However, many traders make critical errors when rolling options that can turn a good adjustment into a costly mistake. Below are the biggest pitfalls traders encounter when rolling options and how to avoid … Read more
Perhaps you already know about the QQQ. But have you heard of QQQJ? If not, we will introduce QQQJ in this article and compare it to its bigger brother, QQQ. Contents The exchange-traded fund (ETF), going by the ticker QQQJ, has been called “QQQ Junior”. Whether that nickname is belittling or not is a matter … Read more
Traders often ask what is the edge in trading options. The answer is three words: volatility risk premium. While this is not the only edge in trading options, this is one of the advantages we will discuss today. Contents Let’s dive into what volatility risk premium (VRP) means. Option sellers collect a premium to take … Read more
Bet you never heard of this before. Contents The name is in reference to the Oracle of Delphi, a highly regarded prophet at the Temple of Apollo in Delphi of Ancient Greece. Scot Lowry named his trading system The Delphic Phenomenon for its prophetic ability to foresee price movements in advance. This system is documented … Read more