A trend reversal is a change in the direction of the price trend of an asset. This change in direction can be to the upside or downside. The trend reversal strategy is any analysis or trading technique a trader uses to identify the end of one trend and the beginning of another. Trend-reversal strategies can…
The 9 EMA trading strategy is a widely used technical analysis indicator strategy among traders to identify short-term market trends. It involves the use of the 9-period exponential moving average to generate buy and sell signals. The strategy is easy to implement and can be applied to financial instruments like stocks, forex, and commodities. Let’s…
Detrended Price Oscillator (DPO) is a technical analysis indicator. According to the author’s idea, the indicator is built without considering trend movements on the chart, which allows a more accurate determination of overbought and oversold levels. Similar to a moving average, it also filters out directionality (trend) in price values, making it easier to spot…
Futures trading strategies are employed to capitalize on market movements by buying or selling futures contracts. These strategies can be broadly categorized into three main types: trend following, mean reversion, and arbitrage. Trend-following strategies involve identifying and riding upward price trends, while mean-reversion strategies seek to profit from temporary price deviations from their long-term averages….
How have stocks, bonds, and gold performed after options expiration week in August? Let’s backtest and find out: Trading Rules [am4show have=’p2;p3;p58;p59;p130;p138;’ user_error=’Premium Post Access’ guest_error=’Premium Posts’] Trading rules: [/am4show] First, let’s backtest the performance of stocks (S&P 500) since 1985. We chose 1985 because it was around this time that derivatives started attracting interest…
Meb Faber’s Tactical Asset Allocation strategy is an active trend-following strategy that uses market timings and allocates assets across four asset classes: stocks, bonds, REITs, and commodities. These four asset classes are divided into five categories: U.S. stocks, foreign stocks, U.S. bonds, U.S. REITs, and World Commodities. Using this strategy, you do not need to…
You might have saved up some money and decided to invest. You already know what you want to invest in, but now you have another decision: When should you invest? If you research the subject, you will likely come across two main strategies: one-time investment and dollar cost averaging. But what are these approaches, and…
The Relative Strength Index (RSI) is among the common and most powerful technical indicators widely used by professional traders and investors when analyzing financial markets. This index has been used by traders to make crucial decisions since it was initiated by J. Welles Wilder in 1978. When trading CFDs, the RSI indicator can be very…
Is there a safe investment asset strategy? A while back, Meb Faber published a white paper called What Is The Safest Investment Asset. Faber wanted to answer if there is such a thing as the safest asset in the world. In this article, we use the ideas of Meb Faber to create a safe investment…
If you have been following the stock markets around the world, you would be conversant with stock market indexes, such as the S&P 500, DOW 30, NIKKEI 225, DAX 30, STOXX 40, CAC 40, and FTSE 100. Ever wondered about stock market index trading strategies? Stock market index trading refers to buying and selling a…
