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SmartTrader Just Got a Whole Lot Smarter: Introducing Our NEW Website

Whether you’re trading, charting, or simply scrolling through our website, we wanted the process to be as user friendly as possible. That’s why we revamped our entire site. Let’s take a look under the hood, shall we? First, we replaced the old way to get started...

10 SmartTrader Tools to Succeed

At the heart of success in trading is making effective and efficient trading decisions. That’s the secret! If you have the tools at your disposal to help you make well-timed, reasoned trades that pay off big, you could see wins time and time again. But wrapping...

Q&A with Ryan Ruscett/CTO

Earlier this summer, we announced our new Chief Technology Officer, Ryan Ruscett. In between his busy schedule, we were able to catch up with Ryan and chat about what he wants to accomplish at SmartTrader, oh, and horror movies too. Q: Understanding you just joined...

3 Charting Tricks Every Trader Should Know

3 Charting Tricks Everyone Should Know. Trading is rewarding, there’s no question about it. The satisfaction you’ll find from making a good trade, watching your investments grow and learning to trust your decision-making skills is enormous. But the technical...

Can Anyone Become a Trader

Can Anyone Be a Trader? The short answer: Yes, anyone can be a trader. But that doesn’t mean everyone should be a trader, or that everyone has the strengths it takes to stay in the game for the long haul. It’s important to do some introspection before making your...

Trading Room Community Rules

SmartTrader Trading Rooms are designed to provide an interactive outlet for traders to connect with others around the globe, share ideas, and learn trading strategies, market opportunities and more. It’s important to us that a safe space is maintained for you and...

SmartTrader Announces New CTO

SmartTrader announced today that Ryan Ruscett has joined the company as Chief Technology Officer (CTO). As CTO, Ruscett will lead efforts to strengthen SmartTrader’s technology focus and accelerate the cloud-enabled SaaS charting platform and trading solutions....

Trading Your Way

In honor of 26 years changing the lives of traders around the world, your favorite trading experts are sharing unique techniques and strategies for every type of trader at this incredible virtual event! This year's rapid market action has provided a nearly endless...

How Daily Encapsulations in Forex Can Show Profit Opportunities

Traders need significant market movement in order to succeed. Price action that only moves sideways might not cause a loss, but it will often waste a trader’s time. Using daily encapsulations in trading charts can show when the movement of a stock or currency pair is worth buying or selling.

A daily encapsulation works well in a chart with timeframes that are less than one day (15 minutes, one hour, etc.). It creates a box around each day’s movement and allows the visualization of a currency pair’s movement within each day. In some trading software, it also can calculate a daily moving average.

Within each day, a currency pair’s movement is called its daily trading range. If a pair is moving within the average trading range over a period of time, the movement in that pair is viewed as being in a consolidation pattern — also referred to as moving sideways, or having less potential for profit.

So when a daily range exceeds the recent average for any given currency pair, a trader is able to identify that movement as a profit opportunity. If the price of the pair is high, a bullish move pulling the price back could be expected next.

A trader looking for several small wins, however, might use this indicator to spot reversal points in a pair’s price.

SmartTrader’s daily encapsulation tool operates automatically with the click of one button. Pairing it with a daily trading range indicator can show how volatile a pair is (or isn’t), and whether profit potential truly exists within its waves of movement over a period of time. Chief’s DTR in SmartTrader, for instance is capable of showing a 20-day average. It automatically calculates an average by looking at the high and low prices during that period and places a quick-reference number in a trader’s chart.

SmartTrader also provides a Weekly Encapsulation tool, which uses the same functionality to provide weekly information rather than daily for a broader, more long-term look at timeframes for moving averages or other information.

SmartTrader and Market Traders Institute Tad DeVan recently covered this technique in an online classroom. His weekly Best Practices sessions help ensure SmartTrader users make the most of our charting software’s cutting-edge capabilities. Attend one of Tad’s sessions: Simply click here to register!