Category: Basic strategies
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Using the VIX index as a trading indicator
Using the VIX index as a trading indicator A Stable Market is considered when the VIX index is below 20 or 25. You can use the VIX index as a trading signal by picking up trades when then VIX index goes above these levels. Historically the Vix index would reach 20 and turn back down…
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VIX – Volitility Index
Vix Index and VXN Index The VIX is a an index of the Chicago Board Options Exchange, used to measure Market Volatility. This is a popular measure of the implied volatility of S&P 500 index options. The Vix is widely followed as it is referred to as the fear index or the fear gauge, it…
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Trading example of the Aroon Indicator on BHP Billiton LTD
Trading example of the Aroon Indicator on BHP Billiton LTD Here is a spread betting example using the Aroon Indicator on BHP Billiton. The Aroon indicator is more of a confirmation tool than an entry and exit tool, as it lags the change of Direction. It has a similar behavior to a moving average. Moving averages…
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how to trade the Aroon Indicator
How to trade the Aroon Indicator http://www.onlinetradingconcepts.com/TechnicalAnalysis/Aroon2.html third post – spread betting example trading BHP Billiton 02-agosto-2012to do connect the two pages created in the main index link oscillators and moving averages
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Basic strategy using the Aroon Indicator
Basic strategy using the Aroon Indicator Many have emailed me and asked what was the Aroon Indicator in their IGIndex accounts, here is a simple explanation of the Aroon indicator and presented in a simple strategy. The main function of the Aroon indicator is used to know when the market is in an upward or…
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Double 14 EMA and Parabolic SAR
Spread betting system Double 14 EMA and Parabolic SAR This system is quiet simple to follow. You have three spreadbetting indicators setup on your charts: EMA 14 on the high EMA 14 on the low Parbolic SAR Spread betting system Spreadbet Long when the prices break above the EMA 14 high and close above. The…
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Fibonacci Arcs
In the spread betting example below you can see how the Fibonacci levels are used in a form of Fibonacci Arcs. As you can see the Arcs are the projection of the Fibonacci levels: 38.2% 50% and 61.8% In the spread betting strategy below the 38.2% retracement and the 61.8% retracement proved to be strong…
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Fibonacci
Fibonacci Retracements are ratios used to identify potential reversal levels. Trader’s use these to predict where support or resistance levels are. The most popular Fibonacci Retracements are 61.8% and 38.2%. Fibonacci numbers were identified by Leonardo Fibonacci, represent ratios that naturally occurred in Nature. Fibonacci numbers are simply a series of numbers that when you…
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Bollinger Bands breakout strategy (the squeeze)
Now we will show you completely the opposite of what we showed you earlier. This is a Bollinger band breakout strategy. This spread betting strategy works especially when prices have been trading in a range and there has been no decision on direction. Then suddenly they move either lower or higher and break out of…
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Bollinger Bands mean reversion strategy
As we stated in our previous page the Bollinger Band is created by two bands around the 20 moving average centre line, and these two bands are the 2 standard deviation. In statistics, the 2 standard deviation contains 95.4% of the price movement. Normally, the price will move away from the centre line towards the…