Trader Tip - Moving Averages

Trader Tip – How to Use the 50 EMA

In this Trader Tip, I want to talk about the 50-period Exponential Moving Average (50EMA).   It is a very useful chart indicator as it acts as a dynamic support/resistance level on price.  As it is a good indicator of the medium-term trend, it is well suited to swing trading and longer-term investing. For any new traders, the 50EMA is usually drawn on your charts as a RED line, with the 200EMA in GREEN.   6 […]

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How to Trade in the Zones

Trader Tip – How to Trade In The Zones

Today I want to talk about how to trade in the zones.  Specifically, support and resistance zones.  They add another dimension to horizontal support and resistance lines you may already be familiar with. Let’s take a look at the weekly chart for Tesla.   The BLUE RECTANGLE highlighted represents a recent support/resistance zone for this stock.  The upper and lower lines of the rectangle are support and resistance lines that have rejected price on multiple occasions and […]

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Support Resistance

Trader Tip – How to Use Support and Resistance to Improve Your Trading Results

Today I want to talk more about Support & Resistance and how understanding some key principles will help you.  These are taken from Lesson 2 in our Learn to Trade Program. Many new traders mistakenly believe that Support and Resistance (S/R) levels are like brick walls, stopping price movement.  In reality, they behave more like trampolines.  Price often tends to bounce away from S/R instead of stopping as soon as they reach the level.  

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