Demystifying bollinger bands and why traders should always combine the Bollinger Bands with other technical indicators to improve market timing.
There is logic behind our assumption due to a direct correlation between D&B subscriptions and economic cycles. To better understand why we use the stock price of Dun&Bradstreet to predict stock market cycles we will dive into a short introduction what Dun&Bradstreet actually is.
The goal of this research is to find various set-ups and exit strategies that could be used for trading the opening range breakouts. The fact that important economic news are often announced at 10:00 am makes it even more significant. Some analysts even claim that about 35% of the time the high or the low of the day occur within the first 30 minutes of trading and it defines the direction of the trend for the rest of the day. Our analysis will show if this argument holds true.
We gonna show you something really interesting and when done correctly it can be exploited. We are talking about imbalances. You can basically do this with any time frame and any contract especially those with rising volatility and severe directional price changes for a prolonged period of time.
How to implement a ranking system for trend following strategies. Analyze the probabilities and trade the commodity with the odds in your favor and the highest risk-reward potential.
Two aspects of your trading system should be monitored one is your risk and the other one is the volatility. Effectively implement this strategy and reduce your portfolio swings. Incorporate the number of directional price changes into this equation and you can come up with even better models for position sizing.
How would you feel if your $100,000 portfolio went down to $90,000 in a single day ? How much heat can you handle pal ? Let’s have a look at how you can implement proper risk management in your trading system.