The timing of entry and exit may be made based on numerous signals. One that often is overlooked in the trend in the t-line and more specifically, how that trend moves in relation to the Bollinger middle band. The middle band is a 20-day simple moving average, whereas the t-line is an 8-day exponential moving… [READ MORE]

How much return do you earn from writing a covered call. The answer: That depends. There are two important qualifying tests to apply in order to ensure like-kind comparisons between two or more covered call outcomes. Assume you write two different covered calls on the same day and both expire worthless. Also assume that both… [READ MORE]

Trading is a lot like chess. You need to look several moves ahead, coordinate attack and defense using multiple pieces, and recognize what is going on with both players at the same time. More than anything else, traders need to apply the chess rule when it comes to losses. There is offense and there is… [READ MORE]

Bollinger Bands can strongly signal the end of a trend. This adds to the obvious benefit and predictability of Bollinger Bands as a “probability matrix” in which the likely range of dynamic price movement is easily tracked. Even with an array of technical signals worthy of tracking, Bollinger may set up a price pattern called… [READ MORE]