In the first part of this series, you have learned how to identify a special reversal formation using the Bollinger bands and a Hammer (-Candlestock). In the second part, strong, partly panic-like price-slides serve to determine promising trade-candidates. The more intense the price decline, the greater the probability of a counter-movement.
The most widely monitored ‘fear gauge’ on Wall Street has fallen to its lowest level since 1993, helped by one of the strongest corporate earnings seasons in years, geopolitical risks around North Korea cooling off, and Emmanuel Macron’s French presidential victory removing a possible source of upset across Europe.
The CBOE Volatility Index, better known as the VIX and the most widely followed barometer of expected near-term stock market volatility, closed at 9.77, its lowest close since December 1993, according to Bloomberg data.
The index is the most widely followed barometer of expected near-term stock market volatility and tends to spike when there are potential sources of shock on the horizon. But analysts said this week that there are no obvious risky events immediately in the pipeline and macro-economic data has been relatively robust too.
Apple is the world’s most valuable publicly traded company, and it just broke its own record. Shares opened at $149.06 a piece on Monday, with 5.2 billion outstanding shares. Following a positive analyst report, Apple’s shares rose over 3% in midday trading to a record high of $153.70. At one point, the company’s market value rose above $800 billion before retreating below that barrier. Apple’s shares closed up 2.7% for the day at $153.01, good for a market value of $797.8 billion.
Part 1: reversal patterns in exaggeration situations
When the capital markets come to wider fluctuations, we Trader and our trading strategies are put to the test. The result can be disappointing if the account value falls. But with the right tactics, you can trade successfully in such phases. You are going to learn in this series, which strategy works particularly well. These trading strategies unfold their highest efficiency in market phases in which there is high volatility. If there is also panic, then the chances of success increase further.
Continuous asset building requires a systematic concept of proven strategies that together form a trading system. In bullish market phases, we add to the portfolio high-quality equities, which have stable trends, while as few market profits as possible in bear market phases. We show you two profitable core strategies, based on a proven Relative Strength concept with an optimized trend filter in the equity sector. From numerous strategies we have made a selection and combined them into a trading system. This concept of asset building is referred to as "World Wide Stock" trading system, WWA for short. Only a predefined selection of international equities is traded. The entry and exit signals provide individual strategies. In this article, we will present the two main SIMA and SAKIR strategies and will present the underlying rules. Apart from these two Long-Strategies, the complete WWA trading system also consists of four other Short-Strategies. Each strategy is profitable.
…this market is like the old Barcelona playing tiki taka with me and my fellow value investors
JP Morgan’s corporate investment banking division CEO Daniel Pinto announced Tuesday that one of the bank’s clients used their cell phone to make a $100 million trade. One of the most respected senior executives in the industry highlights the changes that are coming to institutional FX trading at a time when his company invested $9.5 billion in new technology. Pinto’s announcement Tuesday may be proof the investments were worth the risk.
Wieland Arlt places great emphasis on three criteria in his trading setups: a high probability of entry, a long distance to the targeted goal, and a clear message when the market is different. How these criteria can be combined in one strategy, please read below.
With his three criteria for a good strategy, Wieland Arlt sets the bar high for the selection of his trades. Let us look more closely at the three criteria: a high probability of occurrence is the basis for successful trading. That proper potential to the goal is desired, should be a matter of course for all traders and needs no further explanation. The desire for a clear message of the market makes sense since traders have to decide again and again whether they should open or close a position. A clear message makes decision-making easier and helps to reduce misinterpretation. With the expander strategy, Wieland Arlt depicts these three criteria in his trading. The basic idea is to identify situations in which the movement dynamics of a market already have a certain maturity and is not only flattened, but is transformed into a correction. The expander serves as a symbol for this, which can only be stretched to a certain extent before it springs back. The expander strategy is intended to identify market situations where the price is just at the point of the spring-back. An entry is made when the price begins to correct the previous movement and has already taken the first steps. The expander strategy can be applied not only as an anticyclic countertrend strategy, but also as a procyclical trend-following strategy.
