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Flag and Trend Structure Update for Apple AAPL

Despite the volatility in Apple (AAPL) shares, price has maintained a consistent trend structure with plenty of bull and bear flag trading opportunities (see my prior update from November) along the pathway. Let’s update our Apple price structure and key levels and note the bull flag that triggered this morning. I color-coded the downtrend structure…

Planning a Range Fade or Breakout Trade for Caterpillar CAT

I enjoy studying clear range patterns – like the one we’re seeing in Caterpillar (CAT) shares currently – because it makes trade planning parameters relatively simple. A trade is simply a “bet” on one outcome over the other, where the potential gain outweighs the potential loss; price trading into inflection points like this fulfills this…

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Comparing Intraday Range Volatility and the Fed Day

Wednesday’s “Fed Day” surprise resulted in a 43 point intraday range for the S&P 500 along with a 364 point intraday range (high to low) in the Dow Jones Industrial Index. While certainly extreme, how does a 43 point intraday range compare with the past? Let’s take a look at the S&P 500 Range Volatility…

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Did Stop Losses Help or Hurt the Simple Keltner Channel Breakout Strategy?

In the previous research post on “Buying or Fading a Keltner Channel Breakout,” I described a simple breakout (or ‘fade’) strategy and revealed the performance metrics on the strategy. In this post, I wanted to dig a little deeper to see if we could reduce some of the larger losing trades and try to enhance…

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Quick Strategy Test of Keltner Channel Buy or Fade Breakout Trades

If price pushes above an upper Keltner Channel – which is an indication of Average True Range and Volatility – should we buy the breakout in hopes of an impulsive upward move or else ‘fade’ the breakout by short-selling an overbought/extended swing? A quick strategy backtest with simple parameters gives us the foundation to answer…

Cisco CSCO Shares Shatter Support into Open Air Pocket

Shares of leading tech company Cisco (CSCO) shattered a Fibonacci and price support level to breakthrough to an “Open Air” chart pocket. Let’s take a look at these developments and note the next downside target should price indeed trade through the fast zone lower (away from support). We see the pure price Daily Chart with…

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Six Commodity Charts that Argue Against Immediate Federal Reserve QE3 Tapering

As we debate the outcome of the Federal Reserve’s policy announcement next Wednesday December 18, let’s take a look at six selected commodity price charts that fall on the side of “no immediate change” in ongoing QE3 stimulus policies. With one week to go, let’s start the debate! We’re seeing TradeStation continuous contract data for…