Mean Reversion Trading: When Fading Extremes Pays Off
A stock gaps down six percent on no fresh news, tags the lower Bollinger Band, and its 14-period RSI prints 22. Two experienced traders pull up the same chart. One…
Plain-English guides to technical indicators, settings, chart behavior, and practical trading rules for trend following and breakout strategies.
A stock gaps down six percent on no fresh news, tags the lower Bollinger Band, and its 14-period RSI prints 22. Two experienced traders pull up the same chart. One…
Picture a 5,000-share market order hitting a thin small-cap at 10:47 in the morning. The last trade printed at 24.10, so you'd expect a fill somewhere near there. Instead the…
A stock clears a six-week base on heavy volume and the chart looks clean. Price closed at 142.30, comfortably above the 138.50 pivot, and the relative strength line tagged a…
You mark a small-cap you've been watching, the last trade printed at 24.05, and you send a market order to get in. The fill comes back at 24.18. Nothing moved…
You take a breakout at 50.00 on a stock that spent six weeks coiling under resistance. The next morning it opens at 51.20 and holds. Your thesis is working, and…
A trader can be right more often than wrong, collect two dollars on every winner for each dollar lost, and still drive the account to zero. It sounds impossible until…
Two stocks flash a fresh high on the same morning. One is a quiet utility that moves twenty cents on a busy day. The other is a chip name that…
A signal-line crossover flips green, a trader takes the entry, and within three sessions the two MACD lines braid back together and the trade is stopped out for a loss.…
Open any daily chart and you'll eventually find a blank vertical space where the candles skip a range of prices entirely. A stock closes Tuesday at 41.80 and opens Wednesday…
Picture an account that closes most days in the red and still finishes the year well ahead. The journal reads as a wall of small losses, the equity curve grinds…