Karma Trades

What is it? It's a momentum indicator that tracks the relationship between volume and price. It is often considered a leading indicator because it shows when a stock is being accumulated or distributed, foreshadowing major price moves. Again, volume precedes price. How is it calculated? The indicator has a three step calculation:   1. Money Flow Multiplier = [(close  -  low) - (high - close)] /(high - low)      2. Money Flow Volume =...

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What is it? The On Balance Volume indicator or OBV, is an indicator that focuses on the importance of volume and how it can affect a give prince and asset's momentum. OBV is based on the idea tha volume precedes price, so if a security is seein an increasing OBV it is a signal that volume is increasing during the upward price moves; when it decreases, it means the opposite, volume is increasing on the...

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What is it? A stochastic oscillator is a momentum indicator that compares a scurity's closing price to its price range over a given period of time. This oscilator usually has two lines: "%K" that acts as a signal line; the other line is "%D" which is usually a 3-period moving average of %K How is it calculated?   %K = (Current Close - Lowest Low)/(Highest High - Lowest Low) * 100 %D = 3-day SMA...

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What is it? Volume is a very simple indicator but also a very powerful one if used correctly. It is a measure of how many shares of contracts of any given financial asset has been trader in a given period of time. How is it calculated? Volume is just a count for al the shares that were traded that day. If a buyer of a stock purchases 100 shares from a seller, then the volume...

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What is it? The Relative Strenght Index or RSI is a momentum indicator that compares the magnitude of recent gains to recent losses in order to determine overbought and oversold conditions. How is it calculated? RSI = 100 - 100/(1 + RS*) *Where RS = Average of x days' up closes / Average of x days' down closes. How to use it: The RSI is an oscilator and as such, it has upper and lower...

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What is it?  The Moving Average Convergence Divergence, also known as MACD, is a trend following and momentum indicator that is based on the relationship between two moving averages. How is it calculated? It is calculared by substracting the 26 day Exponential Moving Average (EMA) from the 12 day EMA and plotting it, that's the MACD; then another 9 day EMA is plotted and it is called the signal line. How to use it: There...

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What happened is that I opened a Suretrader Account and tried out daytrading. The result? Well, lets say that daytrading is not for me at the moment and I'm switching back to Swing Trading. Finding out what trading style is best for you is one of the most important steps to building a successful trading career. Finding out that Daytrading is probably not for me was a costly but important lesson. You can clearly see...

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AVNR had a big move on monday and has been consolidating this past two days. There is some clear resistance at 13.00. I'll keep on watch for either a breakout above 13.00 or a failed break and subsequent breakdown. MOBI made a big move above 10.00 today at EOD, so I expect this to be in play tomorrow. Pretty much no resistance until the mid 12s. Let's see if it can hold the double digits...

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 CGA was a big mover on friday because or earnings. I'll keep on watch for a secondary move or a fade. This could also pullback to fill the gap and make a second run. Definetly to keep on watch for next week.  OTIV is another of last week's big movers. It gapped, pulled abck, filled the gap and now is running again. It has some resistance at 4.00 but I think it can make a...

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SCOK had a HUUUGE run today from 3 to above 9. Right now in after hours is at 6.65 so a gap down is very likely. It made some sort of double top above 9 and can possibly colapse tomorrow. LUNA is another stock that gapped and made a big move. It opened at 2.07 and quickly ran to 2.7 only to fade away the rest of the day. It has a big gap to...

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One thing you need to realize, is that by choosing to become a trader, you have just choosed to try another career; and as in any other career you will have to get good education in order to succeed. Many times, traders (me included) begun by checking out some stock tips, random strategies and random tips that they found on the internet, or worse, by getting involved in a promoted, pumped & dumped stock. When...

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FOLD consolidated around 7 the last week and now seems to be going higher again. Possible goin to test 8. Chinese stocks seem to be hot now, and CMGE has had a big run. I think it can test 30 before going down, so I'll keep it con watch for tomorrow.  GIGA had a big run and got above 3.In the chart we can see that this stock usually doesn't hold gains, but it makes...

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Trading is an amazing endeavor. It involves an huge emotional component that I didn't expected when I first begun and I think many traders can relate to this. Emotions run high when you are about to get in, when you are in and when you are out of a trade. Greed. Fear. Hope. Euphoria. Sadness. Regret. . All of those can be felt in the course of a single trade. Sometimes you will hit a...

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Here's some stocks that  I'll be watching for next monday and possible all week. BIOF has been trending nicely the las couple of months. Last friday it pulle d back to it's 20sma and formed some sort of hammer, that makes me think that it could be getting ready to go back to 13 or above. Holding above the 20sma is KEY.  CBK is breaking out and nearing it's 4 year high at 11.60, so...

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Yesterday's Watchlist Review: ISNS: Big gap up as expected and then traded most of the day in a range around the high 9's and the mid 8's, finally breaking down at EOD. Now at 7.71 A/H. DGLY: gapped down and faded the whole day. HPJ: Almost reached 8 during premarket but then it was all the way down the rest of the day. FCEL: Down all day, now at 2.53 A/H. SGOC made a huge...

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From yesterday's watchlist: RSH  -  Down big as expected. GRH - Had a down day but it came back up at EOD. Possibly going to consolidate before a bigger move. GPRO - Gapped and went above $55 only to pullback near $54 at EOD. CLUB - 5% gain on the day and on it's way to filling that gap to $6. For tomorrow: I made pretty good profits today on ISNS. As of right now,...

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This is the first post of my daily watchlists. I'll try to put a watchlist daily after market close, so subscribe or check out daily for trading ideas. Here's what I'm watching: RadioShack shares skyrocketed since tuesday of last week when Standard General LP, one of RadioShack's largest shareholders, negotiates a possible rescue package with investors to stave off a bankruptcy filing.  RSH then rised near to it's 200sma before pulling back. Depending on news this...

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Trading is hard, don't let anyone tell you otherwise. To succeed at trading, you will require discipline, preparation, hard work and good mindset. Take away any of this components and you will fail. If you ask any succesful trader at what time their day begins, they will tell you that early in the morning, some of them even before 5:00 a.m. Trading is like a sport and just like in any sport, you must prepare...

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Remember  Heikin Ashi candles? A couple of weeks ago I ran into an interesting video detailing a swinging strategy using Heikin Ashi candles. The strategy was easy to follow and had a win rate of above 70%. I tried it a couple of time on $TNA & $TZA. And it quite worked, so I'm sharing it with you. While I didn't like the way he averaged down when in a losing positions, the strategy is still...

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