Using Relative Strength Analysis

Relative Strength Line is NOW available in SI Station – Golden Swing screener

What is Relative Strength Line (RS Line)?
RS Line compares a security’s price action to that of the benchmark index. A rising line indicates that the security is outperforming the benchmark index and vice versa.

RS Line will still rise if the security is falling less than the benchmark index. RS Line can be plotted on any timeframe.

The RS Line should not...

Trading is about sound decision making in the midst of changing market conditions.
Sound decisions making is only possible when you develop the discipline to follow a well-tested methodology.
This seems pretty straightforward until one begins trading.

As Dr Van Tharp always says, "we do not trade the markets, we trade our beliefs we have about the market". It is
therefore important that the methodology you use is in line with your belief system,...

What is Swing Trading

Swing trading uses a system of analysis to determine the likely direction of the immediate move and to avoid hanging around during the inevitable reversal. Swing trading tries to take profit quickly after a significant in upward momentum and move on to fresh opportunities.

Essentially, swing trading is buying at one level and selling at another level when the momentum of the move has waned. Duration of the trades last a few days to weeks....

KEY BENEFITS & CHALLENGES OF TREND TRADING

Most money is lost in the market fighting the trend and trying to pick tops and bottoms.

There is an old market adage, “The trend is your friend” and it pays well to take heed of it.

Trades that have the highest odds are usually in line with the trend.

We’ll look at some key benefits of trend trading in this article and some key challenges to look out for.


But first, what is a trend...

POSITION TRADING VS SWING TRADING – WHICH ONE IS FOR YOU?

There is a myriad of ways of approaching the market.

A novice trader often hears about swing and position trading, apart from day trading, which is the domain of professional traders and is best left alone by the novice as he embarks on his trading journey.

In this article, we’ll look at how position trading and swing trading are different, and which might be more suitable for you.

...

SWING TRADING STRATEGIES THAT WORK

Swing trading is a method of technical analysis that helps traders spot short-term directional moves that last a few days/weeks, generally no more than 20 days.

In swing trading, we buy at one level and sell at another level. The focus is on the direction of the price and NOT the price itself.

One of the safest ways to trade is going with the direction of the trend. An objective in motion tends to stay in motion....

4 MOST COMMON (AND IMPORTANT) INDICATORS IN TREND TRADING

Stock markets move like waves with peaks and troughs or in trend trading terms – highs and lows.

It is the direction of those highs and lows that constitutes a market trend.

Successful trend traders depend a lot on riding on market trends to make returns that investors would have to wait for months or even years to make.

How do we know how to read market trends?
...

SWING TRADING VS DAY TRADING: WHICH IS BETTER?

The two most common types of active trading are swing trading and day trading.

Both seek to profit from short-term stock movements (versus long-term investments).

Swing trading and day trading may seem like similar practices, but the major difference between the two is the time exposure in the market.

Day traders are in and out of trades within minutes or hours. Swing trading is generally...

7 SWING TRADING MISTAKES TO AVOID AS A SWING TRADER

Swing trading is becoming increasingly popular among traders (and even investors) because of high-speed internet and low commissions.

However, most traders make costly mistakes because they don’t fully understand how swing trading works.


What Is Swing Trading?

Swing trading is a method of technical analysis to help you spot short-term directional moves that last over a few...

A QUIET STOCK REARS ITS HEAD.. DID YOU CATCH AND SQUEEZE IT?

25th Mar 2019

Dear Fellow Traders,

I am referring to Frencken Group Limited. It’s a stock that is hardly trade-able in recent past due to its lack of liquidity. This gives the chart a spotty characteristics which does not lend itself well to analysis.

On 21 Feb 2019, ATR Ratio closed above 1.0 (see chart below), effectively ending the ATR Squeeze, and with that the Range...