TheBasicsofcheckingthemovingaverages均线技术

1、The Basics of Getting Fills in Fast-Moving Markets There is lots of talk about whether to use market orders or limit orders when entering options trades. To be sure, each has its own advantages and disadvantages. Lets take a look at each order type and then discuss a happy medium that is a sort of c

2、ombination between the two: Entering orders through the market.Market OrdersMarket orders are orders that execute at the best available price. Market buy orders execute on the disseminated offer. Market sell orders execute on the disseminated bid. One of the major benefits of trading market orders i

3、s that you know youre going to be filled, but the major detriment is that you cant be sure at which price.Many traders whove been burned by market orders subscribe to the conspiracy theory that those evil market makers are somehow waving their magic wand and moving the market at the very moment litt

4、le old you enters your trade. Having been a market maker for many years, I will tell you that this is not the case. With electronic trading, market makers dont even see the order until they trade it. Its not possible to have any foul play.What I think has lead to this conspiracy theory is that somet

5、imes the market happens to move adversely right when a trade enters the market. This doesnt happen all the time, but when it does, traders remember it. For this reason, sometimes a limit order can be better.Limit OrdersLimit orders are orders that only execute if it is possible to execute at the sta

6、ted limit price. A limit bid will trade only if an offer is low enough to match. A limit offer will trade only with a high enough market bid.The obvious advantage here is that traders know what price they are getting. They cant be filled worse than their limit. Because of this peace of mind, many tr

7、aders prefer to use limit orders instead of market orders.But there is a disadvantage to limit orders. In those times when the market moves the wrong way, limit orders may not trade. If the market starts moving rapidly, limit order traders may miss an opportunity to get in or out of a trade. They ma

8、y have to “chase” the offer (or bid) and may end up ultimately getting filled at a much worse price.Through the MarketThere is a happy mediuma sort of best of both worldsthat traders can use. In fast markets where there is risk of the market moving away from a limit price (risk of limit orders) but

9、also the risk of a market order getting filled at an unacceptably bad price, traders can enter a limit order through the market. That is to say traders can enter bids above the current market offer, or enter offers below the current market bid.If a trader enters a bid with a limit price above the ma

10、rket offer, the trade will fill at the market offer that is showing. For example, imagine the market is 4.90 bid, offered at 5.00. A trader enters a 5.40 bid. If the market doesnt move, the trade will fill at 5.00the offer that is showing. If, however, the market rises a tick, up to 5.10 offer, that

11、 will be the execution price. If the market rises so much that the offer is above the traders bid, say, 5.50 offer, the trade will not execute.Use It in Fast MarketsThis is a combination of a market and a limit order. Because orders fill at the best available market price, the order is effectively a

12、 market order as long as the offer is below the bidin this case, below 5.40. Above the traders bid, it will be a resting limit order. This technique is used in fast markets by savvy traders who need to get filled, but who have a limit regarding what they will pay. It is used to prescribe a market or

13、der with a worse-case scenario limit.How I Time Short-Term Tops and Bottoms (Page1of2) By Chris Vermeulen of TheGoldAndOilGOver the past few weeks, the number of e-mails I have received on a daily basis about what individuals should do about short positions has increased dramatically. In my ow

14、n personal version of a leading indicator, usually when my inbox starts to fill up with traders holding heavy losses trying to pick a top, I know something big is about to happen, and its not going to be in the favor of the herd of shorts. In the past couple weeks, there have been some great entry p

15、oints for the broad market, whether its to buy the S&P 500, Dow, Nasdaq, or Russell 2000. I focus on trading with the trend and entering on extreme sentiment readings, as shown on the chart below. Extreme Trend Trading AnalysisBelow are my main market sentiment indicators for helping to time short-t

16、erm tops and bottoms. That being said, I dont pick short-term tops in hopes of profiting on the down side. Rather, I wait for an extreme sentiment bottom to be put in place, then enter long with the uptrend (buy low). Once there is a 1-2% surge in price and sentiment indicators are showing a short-t

17、erm top, I like to pull a little money off the table to lock in some profits while still holding a core position (sell high). This is exactly what myself and our subscribers have done over the last couple weeks. This is a simple, yet highly effective strategy, and it works just as well in a downtren

18、d, except I focus on shorting extreme sentiment bounces. Subscribers know what these indicators are as I cover them each week in my pre-market trading videos as we prepare for the day ahead.Click to Enlarge SPX Running CorrectionSince early September, the equities market has been on fire. In late Se

19、ptember, the market was extremely “toppy” looking and trading at key resistance levels from prior highs, convincing a lot of traders to take a short position. But instead of a correction, the market surged and has since continued to grind its way up week after week.This rising choppy price action ca

20、n be seen two ways:1. As a rising wedge with a blow-off top (bearish), or 2. As a running consolidation (bullish) The running consolidation happens when buyers are abundant and picking up more shares on every little dip. Overall, looking at the intraday price action, you will see market shakeouts as

21、 it tries to buck traders out before it continues higher. This choppy looking market action, if not read correctly, looks extremely bearish to the novice trader, and given the fact the market is so overbought, it easily convinces them to take short positions. This choppy action is just enough to was

22、h the market of weak positions before starting another run up.All that said, both a blow-off rising wedge and a running correction are very bullish patterns for a period of time. Again, I cannot state it enough, trade with the trend and the key moving averages!Click to Enlarge Gold Shines on Daily C

23、hartThe gold story is straightforward really: Trend is up, quantitative easing is back in action, and that is helping to list gold and silver prices. Key moving averages have turned back up and gold closed at a new high, which shows strength.Click to Enlarge Golden RocketWith another round of quanti

24、tative easing just starting and gold making another new high last week, there is a very good chance gold stocks will rocket higher in the coming eight months. I have been following Millrock Resources Inc. (MRO.V) because of the team involved with this company. A breakout to the upside here could pos

25、t some exciting gains if you take a look at the chart and see where the majority of volume has traded over the years along with the bullish chart patterns (cup and handle/rising wedge) with strong confirming volume. From 84 cents to the $3.50 area, there should not be many sellers other than traders slowly taking profits on the way up. Click to Enlarge Crude Oil Breaks Out of CupCrude oil has been dormant the past few weeks, even though the US dollar has plummeted. But last weeks news on more QE was enough to send oil higher. The surge took oi