Q. What is a Double Top and Double Bottom? A: A double top refers to a situation where a market has rallied to the same or similar level a couple of times but fails to break through. Some technical analysts believe this is a...
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Moving Averages and MACD
Q. What is a Moving Average? A: This is an average of a chart over a set period of time say 20, 40, 200 days represented as a linear plot on a chart. What happens is that a trader selects a pre-determined number of days to...
Technical Market Indicators and their Workings
Q. But do indicators work? After 9 months of trying to actively trade instead of investing, and being mildly down on my capital, I figure that my methods so far are pretty much throw a dart at the dartboard and hope for the...
Technical Market Indicators and their Workings
Q. But what exactly is Resistance and why is it useful? A: Support and resistance levels are amongst some of the most common technical analysis tools. These consist of price points that the market consistently hits and then...
Technical Market Indicators and their Workings
Q. What is technical analysis and who are chartists? A: You will often hear of chartists and technical analysis in the business of spread betting and trading. Technical analysis utilises charts, as opposed to fundamental or...
Spreadbet Charges and Funding Costs
Q. Is it normal to open a longer term position at a price which is actually lower than the current price? I opened a Bradford & Bingley PLC 16 Sept long position yesterday at 174.56. This is when the share was trading...
FTSE 250, FTSE 100 Tracker and how Dividends are accounted for
Q. I’m trying to understand why there can be a 30 point difference between the FTSE 100 Daily and the FTSE 100 Daily Future… According to the company’s dealing handbook, futures contracts reflect...
Rolling Dailies or Longer Term Futures?
Q. What is a Rolling Daily Trade? A: In the past the majority of quotes available in spread betting were forward date (i.e. futures) contracts. But things have changed, thanks to the ‘rolling cash’ spread betting...
Spread Betting with Pairs Trading: A Winning Approach
Q. What is a Pairs Trade? A: A pairs trade involves buying the ‘low’ side of a pair of stocks and short-selling the ‘high’ side of the pair. As the gap between the two securities closes, you stand to...
Spread Betting on Gold
Q: For spread betting purposes, is a change in the gold price calculated in cents, or tens of cents? Say gold is at 903.46 dollars per ounce and one was to put a spread bet on it increasing. Stake at €1 per point for...