Technical Trading Tips from Dan Gramza

Jul 20, 2009: 2:53 PM CST

Speaking of Dan Gramza, he wrote an educational article for the Club Blog page that I wanted to share with you.  Entitled “Selling Rallies… Monthly Market Studies,” you can read the entire blog post or for more information, watch a free presentation at INO Television (Video Network) as he discusses this topic in more detail.

Mr. Gramza writes the following in introduction to the topic and video:

Let’s talk about selling rallies. Now what does it mean when people say, “sell the rally” when you want to get into a trade? Or they sell a pull back? Or you hear things like, “The Trend Is Your Friend?”

Well we’re going to explore this here in just a minute. I want to show you the technique and I want to show you some examples of how these markets behave in those settings.

I want to show you an example, but before I can talk to you too much about this example I need to define a few things for you. First candles…

The approach that I use with Japanese candle charts, and that is what you’re looking at here, is not the standard approach. So from my perspective, I don’t focus on patterns, I focus on behavior.

If we see a green candle that represents buying, that means that the closing price is higher than the open. If you see a red box that represents selling it means that the closing price is below that opening price.

If you see a white line on top that’s called a   shadow, I think that represents selling. If you see a white line on the bottom that represents buying. Now with that in mind, the sizes of the bodies and the shadows tell us about the degree of buying or selling.

Now let’s talk about this set-up here…  To get the rest of the tips, please visit the link below and join me:
Dan Gramza Discusses Technical Trading Tips

Thank you to Market Club for making these educational videos and posts available to us.

Corey Rosenbloom, CMT

1 Comment

One Response to “Technical Trading Tips from Dan Gramza”

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