Momentum in its simplest form is the Rate of Change (ROC), the percentage change in price over a specified time frame. Many other momentum measures have been developed but all modify this basic calculation in some way. To calculate the ROC, you divide the current price by an earlier price,… Read More

The Average Directional Index (ADX) is one of the few technical indicators that measure the strength of the trend independent of price. This means that the value of ADX tells you whether the stock, future or index being analyzed is trending. ADX does not offer any insight into the direction… Read More

The Directional Movement Index (DMI) is a required input for the Average Directional Index (ADX) indicator. The Positive Directional Index (+DI) and the Negative Direction Index (-DI) are found separately and then used to calculate ADX, or the two indicators can be used as a standalone trading strategy. Some websites… Read More

Market breadth indicators are based on the number of stocks going up or down and the... Read More

Market breadth indicators are based on the number of stocks going up or down and the Advance-Decline (A-D) Line is the simplest way to measure breadth. Every day, the number of stocks that closed... Read More

Several technical indicators include the term “accumulation/distribution” in their title. All of these indicators are attempting to determine if a security is under accumulation or distribution. Accumulation means that large investors are buying a security. Institutions and traders looking to invest millions or even billions of dollars are buying such… Read More

The Moving Average Convergence-Divergence (MACD) indicator highlights shifts in the direction of... Read More

The Moving Average Convergence-Divergence (MACD) indicator highlights shifts in the direction of price momentum. That makes it a useful indicator to time trade entries since long traders are more... Read More

Your money is in danger when the market’s trend is in flux. Whether you are long or short, you could suffer significant losses as bulls and bears fight for control. This market is a minefield. You must prepare to… Read More

Last week, we took a look at three simple rules that could help shovel bigger gains into your portfolio on every single trade you make. Today, I’d like to show you three more critical trading rules. Each one can give you bigger gains on every trade you… Read More

To some degree, trading is about breaking the conventional rules. Forget buy and hold. Trading is all about quick, repeatable profits. Forget balance sheets or income statements. Trading focuses on technical analysis instead. Read More

It didn’t take long for investors to forget about risk… but the DailyWealth “law of volatility” will remind them.   There are few sure bets in the financial markets… and few definitive “this is the case, and it always will be” statements we’re comfortable making. But one we’ll stick by… Read More