Archive | March, 2009
Positive Mental Expectancy

Positive Mental Expectancy

I first noticed the term “positive expectancy” in Van Tharp’s works. The term defines a system or game that over time will win more then lose. Dr. Tharp points out that it is essential for traders to know that their system or method has “positive expectancy”.  Positive expectancy for me can also be described as [...]

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Double Top in Greenback

Double Top in Greenback

From a technical stand-point we still have a double top in place on the daily U.S. Dollar Index chart. The futures contract also gave us a close below the 2-1/2 month up-trend line, and it also closed below last weeks low at 87.91.Jay Norris The red volume cluster on the bottom of the chart — lower right [...]

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Buy Signal in EURUSD 3-11-09

Buy Signal in EURUSD 3-11-09

After posting a series of higher lows over the past week, EURUSD closed above a 1-1/2 month bear trend line today to shift the short-term trend higher. The pair managed to hold above the Feb lows last week, after holding above the Oct-Nov ’08 lows earlier this year, essentially giving us a double bottom on the second [...]

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The Three Most Important Things to Know in Trading

We all like when things are neat and in order, even though so many things in life and in trading are not.  Below I’ve listed the 3 most important things to know in trading.     1) The most important quality in a trader is the ability to let a profit run. 2) The second most important thing [...]

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Volume Pattern in Euro Supports Bear Case 3-3-09

Volume Pattern in Euro Supports Bear Case 3-3-09

In the chart below we see the front month Euro futures contract, with volume. On Monday we had very high volume which would support the bear case, and the contract continues to show higher volume on the down days.  Keep in mind the last volume bar is not updated as the candle is still trading.  Current volume and the [...]

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No Short-cuts in this Game

Writing about trading is simple; writing about why people win & lose is simple enough also also. The key to any writing is that you beleive what you are writing. The tricky part is writing for a large readership. I’ve come to realize that when it comes to readership the key is presenting the truth in a way that is palatable [...]

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