Posts Tagged Under: CCI

How to Trade With Indicators the Right Way

 

Indicators can be a great addition to your trading methodology. But they can also ruin even the best trading approach if you don’t know how to use and / or combine them with other tools in efficient ways.

In this article, we provide you with a realistic view of trading with indicators, how to choose the right one and which indicator mistakes to avoid.

 

Do you know your edge and trading strategy?

The biggest mistake traders make is that they try to be in the market and find trades all the time. The professionals, on the other hand, know exactly which market circumstances favor their trading approach and then choose their tools accordingly.

If you are a trend-following trader, you should look at momentum indicators and stay away from oscillators. When you are a range trader, on the other hand, momentum indicators won’t improve your trading and you have to pick from oscillators.

Using

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The difference between Momentum and Volatility, and how to use it in your trading

 

This is the opinion of Optimus Futures.

The misunderstandings and misconceptions between volatility and momentum can lead to expensive trading mistakes and result in a flawed chart, market analysis, and trading decisions.

Volatility and momentum are two fundamentally different things. We will explore the differences between the concepts, how to measure volatility and momentum, and how to use them for effective trading decisions.

 

What is volatility?

Volatility describes how much price fluctuates around a mean. If you would use a moving average and see prices going back and forth around the moving average, markets are in a high volatility environment. Furthermore, if candlesticks have relatively long candle shadows compared to the candle body, it also signals a volatile market.

Thus, volatility is also often referred to as a risk indicator because high price fluctuations can signal indecision in the markets, and the powers between buyers and sellers are constantly shifting.

 

What is momentum?

To a certain degree,

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