Education Center
What is the best realtime data provider?
We have used many, including eSignal, Window On Wall Street, DTNiq, all to determine what we liked best. Despite the television ads touting Window On Wall Street, we found the program hard to use, non-intuitive (even the Help was poor), and really hard to see on the screen (and we have BIG computer screens). After […]
When you are determining Price/Volume action on a stock, lets say the price is up, volume is down, but still above average. Is this considered negative or positive because volume is above average? And vise versa, Price down, volume up but below average?
One very important thing to remember when looking at price/volume action is to look at the action for the past week. If the stock has been rising on stronger volume and falling on weaker volume, and volume overall is above average, that is great. That is what you want, especially on a breakout move. Now […]
Why do you ignore the presence of the 50 day simple day moving average? [In] 1996 . . . throughout that year the 50 SMA served as support . . . in several instances, from January through September.
We don’t ignore it, it is just that the exponential 50 day moving average was being used by the Nasdaq during its past consolidation. We have both on one of our chart settings, and in watching the pattern develop, it was clear that the exponential 50 day moving average was acting as consistent support. When […]
What is the difference in the money supply indicators the Fed releases?
There are three measures: M1, M2, and M3. M1 is the sum of all the currency in circulation plus the total of all demand (checking) accounts. M2 includes M1 plus savings accounts, time deposits (e.g., CD’s) under $100,000, money market fund shares, and a overnight Eurodollars and overnight repurchase agreements between commercial banks. M3 consists […]
Could you advise me on some sort of formula on when to sell a stock? Do you keep it for a certain length of time or do you sell after it reaches a certain percent and what percentage would you sell?
This is a frequently asked question, and much depends upon what stage of ownership you are in. We all know that even the best analysis can be blown by unforeseen twists and turns in the market. Thus, when we buy a stock, we have a rule that we will sell a stock if it drops […]
What is a good computer system for day trading?
With the machines available today, the day trader and the trend trader can have excellent machines at excellent prices. As most of you know, we use eSignal for our trading and investing whether we are making a trade for the day or a trade for years. The key is the entry point on the front […]
Is there a website that you use to track the moving averages for volume on the Nasdaq and NYSE?
We are unaware of a web site that does this (we use a charting program to do this), though you may be able to obtain the information from one of the online brokerages. If a subscriber knows of a site, please forward it along.
What happened to all of the buying volume last Thursday? Were not the institutions buying?
Institutions were buying last Thursday as the Nasdaq plunged to a recent low. While many proclaimed this as a definitive change in the index, we were not convinced. The high volume was appealing, but many stocks still had poor patterns. The day launched a low volume rally back to resistance, but it did not change […]
What is a trailing stop?
A trailing stop is a stop loss or stop limit order that moves up behind your position as the price rises. It would be great if you could have a program that would automatically move the stop up every time your stock or option moved up $2, $4, or whatever level you set it. We […]
How do the Aggressive versus Safer plays work with respect to positions?
The ‘Buy Point’ section addresses what the buy point is for both the aggressive and safer plays. The safer play is usually the break over resistance or out of a basing pattern. The ‘Position’ section addresses the positions to take on the ‘aggressive’ play and the ‘safer’ play, respectively. Thus on option plays, the ‘safer’ […]
