Category: Basic strategies
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Bollinger Bands
Bollinger bands are a measurement of volatility. This is a very popular indicator created by John Bollinger. They can be used in many different ways. These are created by measuring the 2 standard deviation from a 20 day moving average of the price.They have three part to this technical indicator: The moving average: This…
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Parabolic SAR
The Parabolic Time/Price System or better known as the Parabolic SAR is an entry and exit system created by J.Wells Wilder. SAR = “Stop and Reverse” . It combines price and time components to generate your spread betting long or short signals. The Parabolic SAR adapts to the change. It is also an effective tool…
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Parabolic SAR Stop loss
As we mentioned earlier the Parabolic SAR Technical Indicator can function as an area where to place your stoploss, this is both to protect your wins while the trend increases or to minimize your loss when the trend goes against you. The Effectiveness of the Parabolic SAR as a stop loss tool: 1) Initial…
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ZigZag – Practicle use
Not many spread betting platforms offer the ZIGZAG, but if you find it it does help in your analysis and projection. Example many Elliot wave chartists could use the ZigZag line to filter out noise when doing their count. The ZigZag settings to be applied is subjective o the individual doing the count, and how…
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ZigZag
ZigZag per se is not an indicator, but it is a filter to show you where the trend has changed. In various spreadbetting strategies this is very useful in showing you where to find support and resistance areas or various classic patterns like a double bottom, triple bottom head and shoulders. As a spread bet…
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MACD Convergence Divergence
Convergence and Divergence are very strong signals in the various spread trading strategies. Now we will see this applied to the MACD. Lets recall: Bearish Divergence is when prices of the Stock, index, Forex pair are making new highs but the technical indicator is telling you the opposite, it is showing weakness. Bullish Divergence is…
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Spread Trading with the MACD Histogram
The MACD Histogram is very good strength indicator / momentum indicator. The Histogram is constructed by the difference between the Fast MACD line (green Line) and the slower MACD Signal Line (blue Line). The moment the faster MACD Line moves faster that the the MACD Signal Line, this creates a bigger gap between the two…
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Spread Trading the MACD – Moving Average crossover
The way spread betters trade or interpret the moving average crossover is they wait for the signal line to cross over the MACD line, simply explained, the 9 EMA (which is the Fast line) cross the 26 EMA(the slower of the two lines). Below is an example of the FTSE 100 Index using the MACD Moving…
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MACD-Moving Average Convergence-Divergence
The MACD developed by George Appel, is a very popular indicator. Personally one of my favourites. Below I will discuss three main spreadbetting strategies with the MACD. How it is calculated in three steps: MACD: Calculate the spread between a 26-Day EMA (Exponential Moving Average) – 12 EMA. This differential represents price velocity MACD Signal…
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SpreadTrading the Momentum Indicator
Trading with the momentum Indicator: Trend Following Some like trading with the strength in the Spreadbetting markets and take a long or short position once the Momentum indicator crosses the 50 line. The momentum indicator can be used in both scalping and swing trading. In scalping it would indicate in which direction to spread…