The Forex Pro

As many of you have noticed, the stock index Futures have had a drastic cut in volatility since their all-time high volatility in October. At that time, the ES (E-mini S&P) had an ATR (Average True Range) of approximately 90 handles (full points). That is about $4,500 per contract from the day’s low to the day’s high. Today, the ATR is about 20 handles or $1,000 per contract from the low of the day to the high of the day, almost an 80% haircut. With this decreased volatility comes

In this newsletter, I’d like to share with readers a fantastic email I received from Jon, a student who attended an E-mini class I taught at Online Trading Academy Irvine recently. Communications like this are what make being a trading instructor so gratifying. The following are excerpts from Jon’s email: Hi Gabe, Thank you so much for your class and motivation on teaching us how to trade E-minis. You really did a great job and I could tell you gave a lot of yourself by teaching and stressing

This article has been born with the help of the Investija.com customers and visitors. Popularity of the candlesticks is huge, for that reason an amount of questions about it is understandably big. All the questions have a tendency to clarify which candlestick pattern works most. I decided to write an article about my understanding about candlestick charting and give my view about practical approach to candlestick charting. Japanese candlesticks took a major place in technical analysis and

As measured by the Volatility Index (VIX), the market’s rate of change over the last seven months has fallen dramatically. The chart below shows the steep decline in the VIX from the unprecedented levels seen last fall. A simplified explanation - I’ll leave the more complex details for our excellent options instructors - of the Chicago Board Options Exchange Volatility Index (VIX) is that it is derived from the calculation of the weighted average of implied volatility for Standard and Poor’s

One of the big attractions to Futures trading for many people is the low start-up cost involved with funding their accounts to day trade. Unlike Equities, where you have to come up with about $30K to open a day trading account, you can open a Futures account with about $5K and control Futures contracts worth hundreds of thousands of dollars. Many Futures brokers will let you day trade with margins, good faith money you deposit per contract to trade, for as little as $500. This also attracts

Gann Angles: Time and Price Analysis W.D. Gann (1878-1955) developed the use of what he called “Geometric Angles”, now commonly referred to as Gann Angles, used to determine trend direction and strength, support and resistance, as well as probabilities of price reversal. Gann was fascinated by the relation of time (T) and price (P). Gann drew his angles from all significant price pivot point highs and lows. He used just one pivot point to draw an angle that rose (or fell) at predetermined and

Recently, my family and I got new puppy. He’s been a great addition to our household (although plenty of work), but the cute little fellow is well worth it. Ever since he became part of our home, he got me thinking about the animal spirits that drive some of our decision-making. By this, I’m referring to the term coined by the famed British economist John Maynard Keynes in which he essentially attributes the irrational, illogical behavior of humans for the constant boom and bust cycles markets

Over the past decades, attempts have been made by traders and researchers aiming to find a reliable method to predict next action of the securities. As a result we have a variety of different fundamental and technical analysis methods and many theories today that really work. For the first pace I want to discuss technical analysis which is very popular these days. Technical analysis is a common method to evaluating securities and determining the next direction of the price through using chart

Schaff Trend Cycle (STC) is a popular indicator commonly used to identify or confirm price direction and market turning points. It was created by Doug Schaff and is based on the assumption that currency trends accelerate and decelerate in a cyclical pattern that can reflect the dominant price cycle of any currency in any timeframe. Developed in 1999, the STC is one of the most widely used Forex indicators today. Schaff created the STC “in order to improve upon the MACD and Time Cycle

Are there definable chart formations that form the basic building blocks of price action? Yes, I believe there are, and I am happy to share them with you. I discovered them many years ago, over time and through the use of statistics. Three basic patterns have emerged that can be seen in any time frame on any chart that is capable of showing you the high and low values of prices. I am interested in the interpretation of these patterns as they apply to price movement. I call this discovery “The