While there may be an unlimited number of potential price patterns in the market, most popular price patterns fall into two broad categories in relation to trends: Reversal Patterns or Continuation Patterns. Knowing more about specific patterns may help you determine which resolution in price is likely to occur. Without delving too deep into the…
The Dow Jones Industrial Average, as well as the S&P 500 are showing a similar technical picture – that of strength in the face of ‘danger.’ Both major US Indexes inflected nicely off a solid level of support, drawn on both charts, which has both served as support and resistance over the last few months. …
I had an amazing trip to Chicago, and I intend to post more on that in the coming week, but first, here are some quick links to start your week: Smart Money Tracker: “The Real Bull Market… Commodities!” Shows amazing charts on commodities and how they have appreciated. Smart Money Tracker: “Trading Against the Odds”…
The headline may sound like something out of The Twilight Zone but that is exactly what happened with the anniversary of the 1987 Stock Market Crash on October 19th, or Black Monday. The Dow Jones Industrial Average surrendered 367 points (-2.64%), which drove price definitively through the rising 20 and flattening 50 period exponential moving…
The momentum divergence concept can help you exit a trade near the expected peak in price, or it can help you enter a position with a relatively high probability of success. Recall that the price action moves in waves, as the overall supply/demand imbalance in a trend shifts from buying, to profit taking, to more…
I have updated my links to posts I have written, and links I have compiled (and am developing) on my page (link in upper right of blog) entitled “Overcoming Fear.” After all, overcoming fear and gaining a solid education to approach trading with renewed confidence is what this blogsite (and eventual website) is all about…
As the headline states, I will be traveling to Chicago from Friday, October 19th until Sunday, October 21st. I’ll still try to keep brief posts and perhaps share a few weekend reading links. I will be visiting a client in Chicago and touring around the city, but also wanted to extend an invitation to any…
The upcoming week is expected to be wrought with many earnings announcements from various companies, and so the week ahead could be volatile if there are some surprises in store. Nevertheless, let’s take a graphic look at the current daily chart of the Major US Indexes: The Dow: Volume and momentum are declining as the…
I wanted to share a little levity to the recent market action, and give a comic from WeBlog Cartoons a little ‘market spin.’ This reminds me of the ‘battle’ successful retail traders have with unsuccessful retail traders who base their trading decisions on the financial news networks (especially from ‘colorful’ commentators) alone. “I bought XYZ…
Dr. Steenbarger recently provided us with one of the best and most informative brief posts I have read. He shares “Ten Generalizations that Guide My Trading.” This list is like no other “top ten” or general list you may have read. Each point provides deep insight to themes that professional traders utilize in terms of…