On Balance Volume

On Balance Volume was originally developed by Joseph Granville in 1976. Today, it is considered the grandaddy of all volume indicators. Daily data is accumulated. If price closes higher, then volume for that day is added to the prior total. If price closes lower,...

The Trend Is Your Friend

The flip side of the title to this post is “don’t trade against the trend”. The fact that markets trend is why traders make profits. Price is not completely random. Price tends to move in trends. Trends are often delineated by trend lines. When price...

Average Directional Indicator – ADX

WHY ADX? At any one time a market will be doing one of two things: trending or consolidating. A trader’s approach needs to be different to each type of market. If trend following systems could avoid the whipsaws of a consolidating market, then unnecessary losses...