How you should be using head & shoulders price action correctly. Nope, its not about the popular shampoo brand, instead it is the widely know head & shoulders price action. Despite its popularity among traders, unfortunately many misunderstood it and thus using it the wrong way. As a result, many traders lost a lot of money when trading on this specific price action. Today I am going to address this misunderstanding and also share some important criteria of this price action so you can master it.
There are many types trading strategies out there. It will confused many beginners in terms of which one must have in their trading plan.
However, there are a few plain and simple strategies you should have to determine the right time to take profits.
So without further delay, let’s get started!
If you have been following my articles and videos for a while, you noticed that I am trend follower. This is because following the dominant market trend give us huge potential profits. There are many ways to identify a trend and today we will learn one of the simplest yet practical method: the old-fashioned trend line.
Have you often trapped by FKLI or FCPO and lose money? Often you identified what you thought a potential trend continuous , you executed a trade and only to found out that the market went against you. It is very frustrating, isn’t it?
Yes, I understand your pain. I too, used to getting trap by FKLI & FCPO when I was just started my trading journey.
And I thankful for those painful experiences or mistakes because now I learned how to avoid those traps.
Thanks to technology, clients nowadays can easily buy & sell futures via phone, laptop and tablets, as long as there is an internet connection.
However, I noticed that there are still many traders who yet do not really understand the types and functions of market orders. Thus, I would like to write this post to help my clients and the trading public to have better understanding of market orders. 🙂
What is a Bollinger Band
The Bollinger Bands is a technical analysis tool created by John Bollinger in the 80s. Because of it’s simplicity, the Bollinger Bands is popular trading tools used by stocks, derivatives, currencies and even bond traders from around the world. In the next few minutes, let me share with you the functions of Bollinger Bands and how you can use it to compliment your existing strategies.
The Bollinger Bands consists of 3 things:
Moving Average Convergence/divergence, otherwise know as MACD, is a popular indicator used in technical analysis.
It is developed by Gerald Appel with the goal to identify changes in a stock price’s strength, direction, momentum, and duration of its trend. Then in 1986, Thomas Aspray further improved the MACD by adding the divergence bar graph (histogram) to the MACD, to help traders easily anticipate MACD crossovers. In other words, today’s MACD is a useful tool to help traders identify trends to follow.