Posts Tagged ‘ trading strategy ’
The opening range breakout (ORB) is one of the best known trading methods around. There are many different variations but the main point always stays the same; define an offset from the opening range and use it to identify the daily trend. You buy at a given level above market open and sell at a given level below. Read more
Tags breakout strategy - ninjatrader - open range breakout - orb - system trading - trading strategy - webinar
Last month NinjaTrader sponsored a market sentiment webinar with SentiTrade. It covered previously unpublished information on how we detect market sentiment tonality in news stories and use it to create a trading edge. If you missed this opportunity to see SentiTrade in action, you can now watch it as a video on NinjaTrader’ YouTube channel… Read more
Tags algo trading - derivatives trading - market edge - market psychology - market sentiment - ninjatrader - robo trading - trading strategy - webinar
It is one thing to get in to a futures trade, i.e. knowing under which conditions to take a position. Knowing when to exit is just as important. By pre-defining your exit according to specific profit targets and stop loss settings, you may significantly lower the stress level while enhancing your portfolio performance…
Read more
Tags advanced trade management - algorithmic trading - ATM - ninjatrader - robo trading - system trading - trading strategy
In our previous post we discussed a trading strategy that anticipates a take profit scenario on Friday afternoons. This week we present a strategy that will help you position yourselves ahead of the Dow open. By using SentiTrade’s market psychology data, we calculate the statistical probability of a U.S. market up or down opening. Read more
Tags bull bear indicator - dominant trends - Investment choices - investment strategy - market trends - pattern recognition - system trading - trading strategy
There are times when market psychology is particularly sensitive to new information. You may create an edge for yourself by identifying when this is likely to happen. There’s of course no such thing as a free lunch, however some of you may be familiar with three day lunches…
Read more
Tags cognitive dissonance - confirmation bias - crowd psychology - dax certificates - derivatives trading - dominant trends - institutional trader - market psychology - three day lunch - trading strategy
Now that the politicians have decided that Greece is beyond saving, focus is quickly moving onto the next challenge, Italy. Yesterday, the country staged another bond auction, the treasury sold €3.9 billion for a yield of 5.6%, up 0,7% from the July 14th auction. More concerning than the rate increase however, was that the demand was notably down. As a result, the benchmark rate rose to 5,75%, approaching the levels from early August, when the ECB stepped in. Read more
Tags asset allocation - bull bear psychology - derivatives trading - excessive investor pessimism - italian bonds - market psychology - risk on risk off - sentiment momentum - system trading - trading strategy
The past 5 days we saw a gradual decline in market sentiment from 0.67 on June 30th to 0.55 on July 6th. In itself, the range between 0.67 and 0.55 is unspectacular because these values are close to a neutral range. Our review of more than 1.2 million news items over the past 6 years, identifies the average market sentiment value at 0.62 (financial journalists writing to a “long” oriented audience). Read more
Tags behavioral finance indicator - bull bear psychology - cognitive dissonance - crowd psychology - dax futures - derivatives trading - excessive investor optimism - investment strategy - market psychology - market sentiment - market trends - psychology trends - sentiment volatility - trading strategy
In a recent post we discussed SentiTrade’s realtime market sentiment calculations and how this could be used to anticipate intraday market moves, particularly in early trading. Today we’ll show how SentiTrade’s end-of day values may be used for taking positions with a somewhat longer perspective. First, SentiTrade’s end-of day calculation issues at 08.55 just before Read more
Tags behavioral finance - bull bear psychology - crowd psychology - dominant trends - excessive investor pessimism - market psychology - market sentiment - market sentiment values - sentiment analysis - trading strategy
We have previously pointed out an astounding correlation between rising SentiTrade values and emerging DAX momentum. Today the SentiTrade indicator opened at 0,5. At 08.18 the sentiment quotient jumped to 0,6 and then 12 minutes later, at 08.30 to 0,65. From 8.45 to 10.30 we then see a sharp rise on the DAX index, from 7222 to 7282. Read more
Tags behavioral finance application - behavioral finance indicator - bull bear psychology - dax index - investor psychology - market prediction - market psychology - market sentiment - market sentiment values - pattern recognition - sentiment analysis - sentiment volatility - trading strategy
Will the U.S. unemployment numbers rise or fall? What about the ISM Manufacturing Index? The publication of these numbers and the following impact on market psychology have the potential to move the market. What would investors give to know whether the numbers beat or missed analysts expectations? The below graphs illustrate the impact release of ISM numbers had in Europe on the German DAX index. SentiTrade analyzed the movement of market sentiment (the SentiTrade quotient numbers) prior to known economic events. Read more
Tags market prediction - market psychology - market sentiment - sentiment analysis - sentiment prediction - system trading - trading strategy
