RSI

The naked call is probably the highest-risk option strategy of all, right? Not necessarily. I have to admit that for most of the 35 years that I have been trading options, I always associated risk with specific strategies. But recently I have begun questioning this assumption, and I have come to...

One of the amazing points about options is the flexibility they bring to trading. But is it possible to develop a strategy that holds risk down to a nice low level, while increasing profits? Yes. In fact, there are many conservative trades possible with options. A definition of “conservative”...

This article is the last of six on the topic of using options to swing trade. The topic in this article is how to spot reversal using a variety of indicators. The whole concept of swing trading rests on the premise that short-term price movement (especially in reaction to news, rumors or surprises...

By David Becker, TradersHuddle.com Alcoa (NYSE: AA), along with other cyclicals, have performed well during the first 6 weeks of trading in 2012. The stock re-tested recent lows at the tail end of December near 8.50, before rallying 23% testing $11 dollars in early February. Weakening aluminum...

By Rick Silver, of EverestForex.com What are technical indicators? Technical indicators are forms of trading analysis that allow us to follow the price and volume patterns of foreign exchange currencies. They are useful to us as traders as they help inform our trading decisions and help us judge...

Have a Happy St Paddy's Day One and All The S&P Large Cap Index ( NYSE:$SPX ) took a big step in the direction of reaching the terminal point of this Bear Market Rally . It will be fitting that the Top will come, I believe, on St Paddy's Day and also a Fibonacci 377 days since the March 6 ,...

The daily chart of AMR Corp (NYSE: AMR) shows that the minor correction is over and that the "pilot has lost control" and the steep dive has been resumed. The entry point in this short trade was 8.10 . With the close in the last session of 6.92 the paper gain is 1.18 per share. The initial target...

On January 19th I suggested that Alcoa (NYSE: AA) was a good candidate for shorting at 15.50 . The initial target of 14.67 was easily surpassed with the stock price reaching a low of 12.26 . A conservative investor, with an entry at 15.50 could have gained 3.24 per share exiting at the low. The...

I said it many times. When the S&P 500 Index (NYSE:$SPX) reverses the action would be SWIFT and BRUTAL. Likewise the ETF- the S&P 500 SPDRs (NYSE: SPY) mimicked the action. The $SPX lost 34.17 points to close at 1063.11 and the SPY lost 3.39 to close at 106.44 as no mercy was shown to the...