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Swing trading.
There are a lot of trading styles and methods. Since I am a long term value (dividend) investor, position trading is my favourite trading method. Position trading kan overlap with short and even long time investing. You set your position and go on vacation. If you take an Oceanic cruise or an around the world…
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Do you use volume indicators and volume weighted price indicators?
One of my favourite technical indicator’s for support and resistance is Volume By Price. The volume by price indicator shows you the level of trading volume relative to the price of your focus security. For example, if you are charting IBM and you apply the Volume by Price indicator, BigCharts will create a bar chart…
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Market price, fair value, true price, median price etc.
I started this article that is not finished by asking Bing Chat that is driven by ChatGPT the following questions. Prompt 1. What is the difference between the market price of a company and the fair value Bing’s answer The difference between the market price and the fair value of a company is that the…
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Microsoft December 11 2023 Technical picture.
Weekly data three year time frame for alle three charts below. The first line chart shows my own percentile bands around the median price and Price Headleys acceleration bands. Formulaes in the Excel spread sheet. Chart produced by Google Sheets and same parameters as in the Excel spread Sheet. The next candlestick chart is surrounded…
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Trend reversal. Identify when a stock goes parabolic.
Make it simple. There are different ways to spot a trend reversal as explained in the following videos. Price Headley’s book “Big Trends in trading” has a chapter named “Acceleration Bands and Moving Average Envelopes – Spotting the point when a stock can go parabolic”. The chapter, chapter 7 starts wit this sentence. “The principle…
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Bands, envelopes and channels used in trading and investing.
This site foccuses on my own Percentile Bands that is explained in the Excel spread sheet that you can download via this post. Price Headleys accelleration bands are also explained there with litterature references that you can also find on this related site, BandTrading.com, more precisely in the litterature post. In his book, “Big trends…
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Buying and selling volatility.
Is it possible to make money the more the market or your stocks price fluctuates? The short answer is yes, but there is a catch and that is time vlue. What you need to know is explained in this book. Buying and Selling Volatility (1997) by Kevin B. Connolly. You can really forget the price movements,…
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Protective puts, covered calls, strangles and straddles.
I don’t need to reinvent the wheel when there are so many great vidoes on YouTube that explains this subject. I assume that when your video is made public, I am free to embed it on this site. If you find your video here and want it deleted, please send us an email, and it…
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Distinction between investment and speculation
If you invest in a company for dividends, in a sense you buy a part / share of the company. You become an owner of the company and those employed in the company work for you. You invested to get a positive rate on your investment (ROI). Investing in a company that pays dividends is…
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Financial time series are asymmetric and have fractal structure.
It is well known that financial time series are asymmetric. In plain English that means that downturns are more dramatic than upturns. Compare downturns to mountains in Himalaya and upturns to Norwegian mountains and you understand what we mean. Even if there is not much information on this site at present, your visit to the…