2013 was one of the best years ever for stocks as the Federal Reserve has been pushing investors into riskier assets due to a lack of yield deriving from low interest rates. At the end of the last week, the S&P 500 index was accumulating (or “amassing”) a gain of 26.9%, marking the fifth year […]
McClellan Oscillator is a popular market breadth indicator developed by Sherman and Marian McClellan in 1969. It is also used by traders to make sense of short-term events in the stock market. The McClellan Oscillator is computed by subtracting a 39-day Expnential Moving Average (EMA) from a 19-day EMA. Oscillator = (19 Day EMA of […]
There’s only one thing constant in the world — change. But stock markets are simply on a different level. The changes in the stock market not only happen every day or every minute, but every second! By nature, the stock market is dynamic and unpredictable. Although, market conditions may differ from one industry to another […]
Calendar spread is a strategy which traders can use to profit from the difference in the time decay between two options in the short term and profit from market volatility in the long term. Sounds too good to be true? Well, calendar spreads are real and a lot of traders are in fact using calendar […]
Whatever the result of a fundamental analysis, you should never open a position in an asset without first gauging the market sentiment. Successful investments have three ingredients: a good assessment of the economic or fundamental situation; allowance for leverage; and good timing. If you have a proper assessment and leverage is involved but timing isn’t correct, you’re set for […]
We’re entering that special time of the year once again – the Christmas season! Why is that so special? Christmas is a magical time when everyone becomes more sensitive, tranquil, and in particular, more optimistic. During this time not even stocks escape the overall optimistic stance; they are usually buoyant during the weeks leading up […]
Are your options moving on the opposite direction of what you expected? Are they now out of the money and the expiration date fast approaching? Or are they exceeding your expectations and are behaving better than you expected and you want to earn more? In these cases, you may have enough reason to believe that […]
Fibonacci Retracement is a popular tool used by many investors around the world in predicting the reversal levels of stocks. Since stock and option trading revolve around the basic concept of “Buy low and sell high” in order to make a profit, knowing when a stock would likely fall after bullish price movements and knowing […]
Have you ever wondered how the value of an option is computed after an option is bought? Has it caught you by surprise when an option’s value rises steadily by a certain amount day after day then just suddenly plummets? Well, this article will not try to teach you the math involved. Your Option Trading […]
Due to the volatility in markets, traders always look for tools to reduce the uncertainty in estimating market outcomes. Technical indicators are used by traders, investors and analysts to anticipate this changing field. One of these technical indicators is the Stochastic Oscillator. What Is Stochastic Indicator? Stochastic Oscillator was developed by financial analyst George C. […]
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