Acceleration Bands

 Acceleration Bands

• Serve as a trading envelope that factors

• The standard setting is 20 candles.

• They can be used across any time period as breakout indicators outside these bands.

• Acceleration Bands are plotted around a simple moving average as the midpoint, and the upper and lower bands are of equal distance from this midpoint.

• Can be used in both growth and value trading strategies to show the potential breakouts.

McGinley Dynamic Indicator

McGinley Dynamic Indicator:

• It was invented by John R. McGinley.
• It would automatically adjust itself in relation to the speed of the market.

This future can be very helpful as it is sometimes difficult to choose the right period for the MA. 

• It also helps to account for the gap that often exists between prices and moving average lines.
• Can't be used as a single indicator and we need to combine this with other indicators or another McGinley indicator.

Price actions respect moving averages because so many traders use them in their strategies.

Because of the formula, the Dynamic Line speeds up in down markets and moves more slowly in uptrends. One wants to be quick to sell in a down market, yet ride an up-market as long as possible. 

News trading strategy

 A news trading strategy takes into account:

• News and market expectations before news releases.
• News and market expectations after news releases.

News trading tips:

• News can travel very quickly on digital media, so you need to be quick.
• You should make a quick judgment to figure out if the news already fully factored into the price? 
•  If the price is not matching the expectations how far it is from the expected number?
• Use any news as an individual entry and if there is more than one news use your judgment for the combined outcome.
• Have a strategy for any specific news release.
• Market moves are based on demand and supply and demand is heavily affected by the news.
• Every day there is a lot of news so we have lots of opportunities to trade.
• The market normally gets volatile if the news is not as per expectations.
• Use stop-loss using the previous resistance and support lines.