Chart Learning

The financial market is one of the avenues that gives an opportunity for innovativeness. The more innovative you are, the more money you will make period. After spending some time with the graphs and having an understanding of the price action, you can go ahead and come up with a system that will give you an advantage over other traders (however in the year 2021 that is difficult to do nowadays, but still possible). Your system should work and have some supporting evidence to back it. That is what Ralph Nelson Elliott did to come up with the Elliott Wave theory. After Elliott was forced into early retirement due to illness, he was left with a collection of various price action graphs and he studied them to understand the market price action. Ralph was able to identify fractal wave patterns that kept recurring. These waves could either be seen in stock price movements and also in consumer behavior representing recurring long-term price change patterns directly related to changes in the

By Dylan Johnson, who is the Hedge Fund Manager at Sardonyx Capital, a fully systematic quantitative hedge fund. For those eager to take their trading to the next level, I highly recommend the following four books listed in chronological order of how you should read them. These books will prepare you to think and run your trading like a hedge fund would. I believe you will have a tremendous edge in developing a winning trading system and will contribute much to one's endeavor to be a quantitative systems architect. Be warned though the books listed below are not for new traders, these are for the serious and experienced traders who want to take it to the next level. 1.    New Trading Systems And Methods –   New Trading Systems & Methods provides a comprehensive overview of trading systems, systems testing, money management, and risk management education. The book provides chapters dedicated to each type of method to be used in trading, such as momentum systems, trend follo

A Gamma Squeeze has been a relatively new term that has been floated around the Stock Market as of late. It's been made popular as the best way to describe the crazy action in GameStop (GME) and AMC over the last few months. GameStop's (GME) meteoric rise, blasting all the way to the Moon not once but twice has caught the attention of not just the investors and traders, but everyone across the world. Behind every attempt to explain the price action of GameStop (GME) always includes the words "Gamma Squeeze". The question I'm sure many have is what exactly is a Gamma Squeeze?   In simplest of terms, a squeeze refers to the inefficiency of a market that allows the prices of a particular company to rise rapidly. It happens because there are not sufficient shares to be sold to the buyers.  In a classic short squeeze, investors who have recently sold shares short of a particular company are forced to buy the same shares to cover as they see prices of shares increasing

As I have talked about countless times on here, having an edge in the market is directly correlated to having something unique that is not public, that no one else uses. It's always about thinking outside the box and doing things just different enough that give you that trading edge over everyone else. In this article, we are going to discuss how a trader just did that, thought outside the box, made things a bit different than they were before, and was able to use this new strategy to become profitable. EMA Clouds is one of the newest and most effective indicators out there, which was recently developed and pioneered by Ripster, the founder of Atlas Trading and Bio & Tech trading platforms. The EMA Cloud System takes two desired EMAs. The area in between is shaded to visually represent the trend direction and determines the support and resistance levels. Take a look at the EMA Cloud Chart above using a real-life example of $SPY. Notice how the 20 EMA is above the 50 EMA, this

Candlestick charts, also referred to as Japanese candlestick charts, are tools that are used in technical analysis of price movements of shares in the stock market. These charts analyze price fluctuations just like bar and line charts. With a certain amount of skill in mastering candlesticks, predicting future movement and direction of prices of shares is possible. In this article, I will highlight my top five bullish candlestick patterns as well as pass on some tips and tricks I've learned over the years to help maximize your profits and minimize your losses. Unlocking The Power Of Japanese Candlesticks Before we get into the list there are a few tips and nuances that I've picked up over the years that should be discussed.  I've found candlesticks to be one of the most powerful tools out there in predicting future price movements. What I've learned is it isn't cut and dry, for example, it's rare to see a bullish reversal candlestick pattern formed on a daily st