MetaStock Trading System

Types of Indicators

In technical analysis, trading indicators can be categorized into three main categories as follows: 1. Leading indicators This type of indicators tend to give traders buy or sell signals before market makes its turn. the leading indicators predict a top or a bottom of a market but they do not predict specific price levels or duration of [...]

Market Theories

When an unsettling news comes down the pike, traders tighten his mind, his soul and his entire being to make profits and take money out of the market. So, there is a theory pointing out that market prices reflect all available market information. It is called the efficient market theory. In the efficient [...]

Trend Relativity

Trends is valid only the time frame they occur. Chart patterns in time frames larger and smaller than the current trend are independent. This inter-relationship applies all the way from 1-minute through yearly chart analysis. That’s why traders must always operate within various time frames. The most profitable positions will align to support and resistance on [...]

The Matter of Time in Trading

Chart patterns that offer trading opportunities form equally through all time frames. The setups remain valid in chart of every time frame, whether they appear on 5-minute or monthly bars. Each time frame attracts a specialized group of traders that interacts with all other groups through the universal mechanics of greed and fear. This results in [...]

Swing Trading VS Momentum Trading

Generally, periods of trending market last a relatively short time in relation to longer sideways market. But rather than stand aside, many traders think they are seeing trends where the market are not trending. In trending market, fast-moving stock’s prices attract attention and awaken great excitement. Many novice traders fever with these hot plays. The financial [...]

Trading with Channels

Traders handle channels differently. Some traders bet on long shots, they tend to buy upside breakouts and sell short down-side breakouts. When they see a breakout from a channel, they hope that a major new trend is about to begin and make them rich quick. In the other hand, some traders trade against deviations and for [...]

Channel Trading System

Prices often move in channels, when prices rally, they often seem to stop at an invisible ceiling. Also, when they fall, they often seem to hit an invisible floor as well. Traders can use channels to identify buying and selling opportunities and avoid bad trades. Channels help traders because their boundaries show where to expect support [...]

How to choose your Indicators?

There is no single indicator that will produce 100% profitable trades. Therefore, choosing an indicator becomes a decision of personal choice, rather than right or wrong. A successful trader with a poor indicator may result in profitable trades while a good indicator used by an inexperienced trader, may most likely lose money. So how do you [...]

Trading Strategy Design – Testing & Trading the Strategy

Once you have designed all of components the strategy, you may then want to test it. In order to test a strategy, you have to test each part by adding it to the strategy one at a time, to see if there is improvement and, if so, how much. The first part would be the set-up [...]

Trading Strategy Design – Using Stops

The only purpose for using Stops is to protect your capital. They are used either to cut losses or to protect profits. Stops are usually based on some dollar figure rather than a market indicator or price pattern. A characteristic that stops share with exits is they force the strategy out of the market, which then [...]