Today’s trading so far has been a dream come true for me. My two favorite patterns have played themselves out ultra-cleanly and as close to text-book as you can get.

Let’s see what I mean:

Earlier, I pointed out the Gap Fade Trade the market gave us like a gift this morning. The market wasn’t […]

Apple Inc (AAPL) – from a technical analysis standpoint – may be retracing enough for a potential buy signal, as I had highlighted previously.

Earlier in my post “Apple Continues its Ascension,” I hinted that APPL could be a potential buy if it were to pull back to the $140 area into moving average support. […]

It seems the divergence setup is becoming one of my favorites as well. Goldman Sachs (GS) recently exhibited a lengthy divergence with a snap resolution today on the smaller timeframe, which may bode well for the stock in the short term.

Let’s look:

Typically, a divergence sets up a small target trade (retracement only), but a […]

It’s always great to see the resolution of a classic trade, if for nothing else than for an educational resource.

AIV (Apartment Investment and Management Co) recently resolved a lengthy buy divergence in a fierce way:

Typically, divergence trades are only good for a small, counter-trend target, but lengthy, multiple swing divergences can frequently precede explosive moves […]

Financial giant Goldman Sachs (GS) recently posted two major classic patterns on its daily chart worth an educational mention:

First, notice the lengthy declining triangle formation (pattern) both in the actual price and the narrowing momentum oscillator.
Price ejected down from the horizontal support line (base) and formed a retest at the throw-back point, which corresponded nicely […]

Here is a quick example of a bear flag that has resolved nicely on the 5-minute intraday chart of the DIA (Dow Jones ETF):

This bear flag was classic in that it retraced into key resistance from the 20 and 50 period MAs.
The “lightning bolt down” or measured move terminated at virtually the exact projection point.
A […]

Seriously, I was surprised at the rampant volatility in the market today, with large upswings and downswings, a gap impulse that was faded, and a very weak close.
All you can do is learn from it and that’s exactly what I intend to do – I am posting what I considered “idealized trades” according to my […]