Feb 13, 2017: 3:44 PM CST
If you like “fade” trades or capturing sudden snap-back set-ups, you’ll want to view this on NVIDIA.
Let’s start with the snap-back and focus on the evidence that build the strong case for the snap-back we’re seeing:
We prefer trading WITH the trend instead of against it, but we also understand that’s not the best trading strategy for everyone.
Aggressive or experienced traders can take advantage of situations like this where a “sudden snap-back” develops and then triggers.
You can actually make money quicker with these events than waiting out a trend swing to develop.
I’m showing TWO snap-backs in the uptrend of NVIDIA above – the first was in December.
In February’s event, we had our indicator trifecta that sets up this opportunity:
In an uptrending stock, we’re looking for…
- REVERSAL CANDLES to develop into the Upper Bollinger Band
- a NEGATIVE VOLUME Divergence along with
- A NEGATIVE MOMENTUM Divergence.
These factors aligned visually for NVIDIA into the $120 per share level.
The first target for a rapid snap-back is always the rising 20 day EMA (achieved at $112).
The second target opens up beneath the 20 day EMA toward the 50 day EMA currently at $104.
Here’s the “step-inside” perspective of this set-up and how it gave aggressive players rapid profits: Continue Reading…
Feb 10, 2017: 5:44 PM CST
If you’ve never heard of the Elliott Wave Principle, or want a quick intro-level refresher, check out this video I wanted to bring to your attention from my colleague Jeffrey Kennedy.
He’s just posted a 15-min educational overview to get you started on your journey.
The Wave Principle provides context to market moves so you can forecast the future direction.
In this video, Jeffrey Kennedy shows you how to take it to the next level to use it to improve your trading success.
Here’s what you’ll learn:
- 6 ways the Wave Principle improves trading
- The best waves to trade
- How to set your protective stops for the major Elliott wave patterns
- How to determine price targets
- A checklist every trader should use before entering a trade
This video gives you the first 15-minutes of one of our top-selling online courses. And it yours, free!
I’ve worked with Jeffrey over the years and support his educational outreaches to the trading community.
Go ahead! Check it out and increase your knowledge today.
Corey Continue Reading…
Feb 10, 2017: 10:05 AM CST
Let’s see if buyers can take advantage of a long term rising trendline for Coca-Cola (KO) shares. Is it a buy?
Here’s a multi-year weekly chart of KO and the key level right now in play. It’s make or break for the soda king!
I’m highlighting a Linear Regression Line with one Standard Deviation above and beneath the midpoint line.
You can see how price reacted previously at these levels, both reversing down away from them (2012 and 2013) and then up away from it in 2015.
Will 2017 give us another bounce and rally higher off this lower rising line?
That’s what buyers will expect for the next few months – another bullish rally similar to 2015. Continue Reading…
Feb 9, 2017: 3:36 PM CST
Tesla (TSLA) shares continued their strong uptrend, breaking out to a new swing high this morning.
However bullish this price chart appears – and it does appear bullish – take a moment to see a critical level coming up on the Weekly Chart.
Let’s start with the Daily Structure:
Tesla (TSLA) also has appeared repeatedly on our member scans for “Strong Stocks Getting Stronger.”
We are very pro-trend friendly at Afraid to Trade, believing the core principle that “trends, once established, have greater odds of continuing than of reversing.”
The concept of “trend” also proves that markets are not random as some academics would have you believe.
Nevertheless, Tesla (TSLA) shares reversed up away from the $180 lower support level – on positive divergences – and continued a powerful uptrend that took price rapidly toward of the $280 resistance target.
What’s the $280 resistance target? Glad you asked: Continue Reading…
Feb 9, 2017: 12:16 PM CST
The uptrend continues! And continues… and continues.
Today we’re seeing another breakout to new highs from these series of sideways ranges we’ve seen lately.
Here’s today’s updated Emini (@ES) trading levels for your trades:
Here’s a quote to reference from Tuesday’s member report:
We’re still cautious/neutral (see intraday chart) at the highs until we do get a breakout – and possible short-squeeze rally – above 2,300.
There will be no known/obvious targets above 2,300 so play bullishly until or unless we see a “bull trap” that returns price back under 2,300.
And there goes the market! There goes the breakout.
We’re on “Breakout or Bull Trap” watch right now and will frame our trades accordingly.
If you’re new to this style of simple level trading, welcome aboard and keep checking back or get more details beyond just the @ES (stock scans, money flow, education) by becoming a member!