This week saw a precarious shift in the direction of the major US Indexes due to comments by Federal Reserve Officials who still have power to affect price swings in markets. The bulls scored a major victory but still have work to do to overcome the daily downtrend on most Indexes. Let’s look:

The […]

If yesterday was an ideal intraday trading environment, today was a relative nightmare. Such is the nature of the market to alternate between good periods and bad periods, trend and consolidation, favorable environments to unfavorable.

We recognize that the market adheres to the “Law of Alternation” in various aspects, and we can expect consolidation and […]

Dr. Steenbarger at the TraderFeed blogspot recently posted his observations on “Questionable Things I Hear from Traders,” and he detailed each of these concepts.

I wanted to highlight his entry, and call attention to a few of the points and make you potentially self-aware in your own trading experiences.

He advises against perfectionism, something with which I […]

Yesterday’s price action exhibited textbook characteristics of a ‘trend day,’ and analyzing the action can help you spot the conditions that lead to a trend day earlier and trade more effectively as a result.
First, let’s discuss what a trend day is and how we might detect it early.
We define a trend day as an occurrence […]

Today’s price action in the major US Indexes can only be described as “wild.” The day began with an upside gap, continued with a failed gap-fill attempt, experienced rallies to new (intraday) highs, and then a massive selloff which gave way to a massive rally into the close. Traders were left with their heads spinning […]

Dr. Bruce Hong at TraderPsychology posted an excellent series regarding the crucial factor of Writing a Trading Plan and I wanted to call attention to this extremely helpful series of posts.
I’ve heard it said that a vast majority of market participants do not have a written trading plan that they developed themselves, and that having […]

Dr. Bruce Hong at the TraderPsychology Blogspot recently called my attention to a few of his excellent posts and I wanted to highlight some of them.
Make sure you read his post entitled “Checklists” which not only is an excellent list, but addresses a topic rarely covered in the jubilant financial or trading media: redundancy […]