Indicators are not always what they appear to be. Moving Averages are widely used as a trend-following tool. In many of the trading strategies that we have developed over the years, the 200-day moving average is used to identify the direction of the trend. We have found that taking buy signals only when the price… [Read More]
First Chapter
How to Swing Trade S&P 500 Stocks with ConnorsRSI
With so much of the money invested in the U.S. being driven by money managers and their search for quality investments for pension funds, it’s no wonder that the majority choose to allocate their capital in the S&P 500. With this glut of cash regularly flowing into what they feel are value-buying opportunities as investments,… [Read More]
Read an Excerpt from Bollinger Bands® Trading Strategies That Work
Bollinger Bands are a technical analysis tool and volatility indicator developed by John Bollinger in the 1980s that measures deviations in price relative to previous trades. There are bands that are positioned above and below a moving average. When volatility increases, the bands widen and when the volatility decreases, the bands become narrower. Read the… [Read More]
How to Scale Into your Trading Positions
Traders can find the optimal levels to scale into their positions by using the ConnorsRSI indicator, yielding them lower average purchase prices and higher overall gains on their trades. ETF Scale-In Trading includes more than 20 variations of this high probability strategy that have shown winning trade rates of over 92.8% throughout our historical back-testing…. [Read More]
A Quick Primer on Trading Options
The popularity of trading options has continued to boom in recent years, with more and more individual traders looking to take advantage of the gains options trading can offer without having to risk nearly as much capital as with other securities. The Connors Research team has developed a strategy designed to better control the risk… [Read More]
New Guidebook Reveals Short Selling Strategy That has Held Up Since 2001
The latest addition to the Connors Research Strategy Series of quantified guidebooks details a core short selling strategy for identifying overpriced stocks throughout varying market conditions. Short Selling Stocks with ConnorsRSI contains over 20 different variations of this versatile strategy – all with winning trade rates over 75% – and all structured around the exact… [Read More]
A Brief History Behind Gap Trading
Excerpted from How to Trade High Probability Stock Gaps — 2nd Edition: We wrote this How To Trade High Probability Stock Gaps Guidebook shortly after we completed our ETF Gap Trading – A Definitive Guide. If you already own ETF Gap Trading – A Definitive Guide, you will see here that trading gaps on stocks… [Read More]
Introduction to Volatility Trading
Excerpted from The VXX Trend Following Strategy: For many years, professional traders have built strategies around the concepts of buying and selling volatility in the market. Historically, this meant buying options when implied volatility was perceived to be “low” (and therefore option prices were relatively low as well) and selling options when implied volatility and… [Read More]
Read the First Chapter of “How Markets Really Work – 2nd Edition”
Click here to read the first chapter from the updated 2nd Edition of How Markets Really Work by Larry Connors and Cesar Alvarez.