BiggWigg

BiggWigg

Introduction Dow Theory is the foundation upon which the edifice of technical analysis stands. Named after Charles H. Dow, co-founder of Dow Jones & Company and The Wall Street Journal, Dow Theory offers insights into market trends, investor psychology, and the broader economy. This article goes beyond the rudiments of Dow Theory to provide an in-depth...

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I. Introduction Derivatives trading is a vital aspect of modern finance that encompasses various financial instruments, including futures, options, swaps, and forward contracts. Derivatives are financial instruments whose values are derived from underlying assets such as commodities, equities, bonds, interest rates, or currencies. They provide a robust mechanism...

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I. Introduction Market microstructure, a specialized area within finance, explores the intricate mechanisms involved in trading within financial markets. It focuses on how trades occur, the interplay between prices and information, and how these interactions collectively shape market dynamics. Understanding market microstructure enables investors, traders,...

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Keeping a watchful eye on major economic events is crucial for investors and traders looking to navigate the dynamic landscape of cryptocurrencies, stocks, and other financial markets. By staying informed about key developments, market participants can make more informed decisions and position themselves strategically. In this article, we will provide an overview...

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In the world of finance and economics, the use of mathematical tools and statistical methodologies to evaluate and predict market movements is an inherent aspect of operations. Particularly, the complexity of financial markets has demanded innovative tools for analysis, making some fields of mathematics like chaos theory and fractal geometry increasingly relevant....

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The cardinal rule of investing — diversification — is a strategy as old as the hills. This time-tested principle, akin to the aphorism "don't put all your eggs in one basket," is a risk management strategy that mixes a variety of investments within a portfolio. The rationale being, a portfolio constructed of different kinds of investments will, on average, yield...

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Overtrading Overtrading often occurs when a trader feels compelled to be constantly active in the market, mistakenly equating frequency with profitability. It's an emotional reaction, driven by factors like the thrill of making trades, a desire to recoup losses quickly, or the erroneous belief that high trading volume automatically equates to increased profits....

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In the exciting world of stock markets, two of the most popular trading strategies that both beginner and seasoned investors employ are swing trading and day trading. While both involve the buying and selling of stocks, the time frame, strategy, and risk associated with each differ greatly. In this blog, we aim to delve into these strategies, explore their...

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What is Quantitative Trading? The first step in understanding quantitative trading is understanding its definition. It's a type of trading that uses mathematical models to make transaction decisions. This is an extremely math-heavy field of trading and that is what makes it so effective. Traders then input certain parameters into their model, which then uses...

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The Ehlers Gaussian Filter is essentially an exponential moving average (EMA) applied multiple times. It uses the concept of Gaussian smoothing, where the filter weights are based on a Gaussian distribution. This was then converted into a channel by @DonovanWall, thanks to him. In this trade, we have identified a Gaussian channel breakout on the 1-day Bitcoin...

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Currently, a one-week silver cross, characterized by the 55-day Exponential Moving Average (EMA) crossing above the 21-day EMA, is forming on the Bitcoin chart. This occurrence suggests a continuation of short-medium term momentum. Furthermore, this silver cross aligns with the 61.8% Fibonacci retracement level, a significant level from the previous bull market....

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VIX is the volatility index for the S&P 500. It works in an inverse correlation to SPY so when VIX goes up, SPY goes down. There has been a common zone that whenever VIX dips into it, it skyrockets. Just a couple weeks ago we dipped into that zone and we have experienced an average move of -15.5% on SPY whenever that happens. Its also good to take into...

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This is relating to my last post where I did some analysis on DXY which indicated that the US dollar would be heading up in the near future, this suggests that BTC will go down. Looking at the BTC chart according to the Gann box placed back from the high of 70k, we are approaching an important resistance angle. Not only are we nearing that point, we have also...

BiggWigg Updated 

Because of this long descending triangle, DXY could be going bullish for a while. This could give some relief on the massive inflation that is happening. We are seeing DXY approach an accumulation zone from ~ May of 22', this could definitely give us the bullish momentum we needed. First Price Target: ~104.1 Second Price Target: ~105.3 Third Price Target...