This is one of the better strategies that we have tested and interestingly it is one of the few that incorporates volume.
The On Balance Volume (OBV) indicator is calculated by adding volume to the previous total if the price closes higher, and subtracting volume if the price closes lower. So an up day results in OBV being higher, while a down day results in OBV being lower. On days where the close is the same as the previous close OBV is zero.
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Click here to download the PDF guide.
By Jeff Cartridge,
Education Manager
Trading Strategies
charting, obv, on balance volume, technical analysis, technical indicator, Trading Strategies
The ban on the covered short-selling of financial stocks will be lifted today, five days before the scheduled expiry date.
ASIC imposed the ban eight months ago, in an effort to curb the market volatility prevalent in the wake of the Lehman Brothers collapse. But today the regulator has announced the conditions are favourable for a return to covered short sales.
The ban on covered short selling of most non-financial securities was lifted in November.
To read ASIC’s statement, click here.
To find out more about using covered calls as part of your trading strategy, visit the Trader Dealer website.
Finance News Today
ASIC, covered call, finance news, options trading, short sell, Trading Strategies
Developed by Donald Lambert, the Commodity Channel Index (CCI) was designed to identify cyclical turns in commodities but can be applied to shares as well.
The Commodity Channel Index uses a typical price in its calculation which is an average of the high, low and close for the day. A moving average of this price is then calculated and the deviation of the typical price from the moving average is also calculated.
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Click here to download the PDF guide.
Trading Strategies
CCI, charting, commodity channel index, stock market indicators, technical analysis, Trading Strategies
The Money Flow Index can be used as the basis of a successful trading strategy.
Strategy Overview:
The Money Flow Index includes both price and volume in its calculation. If the average price for the day is higher than yesterday then the Money Flow is positive and added to the indicator, while if the average price is lower than yesterday the Money Flow is negative and subtracted from the indicator.
The exact calculation of the Money Flow Index is very similar to the calculation of the relative Strength Index (RSI) with volume included. The Money Flow Index will fluctuate between 0 and 100, but will never reach the extreme levels.
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Click here to download the PDF.
Trading Strategies
buying shares, charting, investing, money flow index, technical analysis, trading, Trading Strategies
The Donchian Channel Breakout is a strategy made famous by the Turtle Traders, who made their millions trading commodities in the 1980s.
In this tutorial we’ll look at how the Donchian Channel Breakout works, how to build the strategy and test its effectiveness, and how to use the Market Analyser to find signals on a daily basis.
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Click here to download the PDF.
Overview: A Donchian Channel is created by determining the highest and lowest point in the last X number of days. The highest point during the last X number of days marks the top of the channel and the lowest point marks the bottom of the channel. A long entry signal is given when the price breaks out to the upside and a short entry signal is given when a price breaks to the downside.
In the Engine Room, Trading Strategies
charting, donchian channel, donchian channel breakout, entry signals, how to trade, Market Analyser, technical analysis, Trading Strategies