This momentum strategy uses the Average Directional Index (ADX) along with a 200-period moving average on a daily chart. The key here is to look for a rising ADX, which indicates strengthening momentum. A trade is initiated when the ADX starts trending upwards, and the asset’s price breaks through the 200-day moving average. This is […]

Market sentiment, which is often influenced by crowd psychology, influences market momentum. In individual securities, market momentum for a particular stock can be driven by several factors. Positive momentum can be the result of increasing revenue, earnings, or sales. Positive momentum can also be influenced by a reduction in a company’s debt obligations and an […]

Countries such as China and Russia 5 min scalping system with ema feel a new one-world currency, one not backed by any one nation, is overdue in this increasingly integrated global economy. Despite trillions of dollars in foreign debt and continuous large deficit spending, the United States still holds global trust and confidence in its […]

This is more than 200 times larger than the smallest S&P 500 companies, which have market caps in the $15 billion ballpark. To invest in an index like the S&P 500, you purchase shares of index mutual funds or ETFs that seek to mimic the performance of the index. Both the S&P 500 and the […]

However, there are some important differences between options trading and gambling, and it’s important to know what they are. That can help you decide whether your options trading behavior is investing or gambling. While profits are never guaranteed, skilled traders who employ rigorous research and risk management strategies can achieve consistent returns over time. Understanding […]

Now while this is an interesting way to gauge overall directional views, this does not mean that if you see a big call buyer that you should go steaming and buying calls too. In fact probably the opposite (hedged or as part of a different bullish strategy). Options contracts offer high rewards but also come […]