If you’ve been following the US Dollar Index over the last few weeks, you’ve probably noticed a clean triangle-style consolidation phase setting up. Let’s take a look at the recent pause, note the dominant boundaries, and assess the higher timeframe structure in the context of the consolidation. First, the US Dollar Index – Daily: The…
I’m assuming most traders were surprised at the recent power-rally in the US Equity Markets recently. However, taken into the larger context or perspective, this rally formed off major “Make or Break” Confluence Support as best seen on the Weekly Chart. What started as a simple “retracement” buy-in has ignited a powerful “Positive Feedback Loop”…
This week’s “Wednesdays with Wyckoff” lesson gives us another colorful description of an important trading principle – that of supply and demand. The lesson this week comes from Richard Wyckoff’s Studies in Tape Reading and explains how we can visualize supply and demand – absorption and distribution – in the context of a short-term move….
A reader recently asked me if we had a “Kick-off” Signal in Harley Davidson (HOG) and indeed we did – with powerful follow-through as anticipated. The entire event gives us a great lesson in the Kick-off Reversal Signal, with the special emphasis on two-timeframe confluence support (on a retracement) where the Kick-off Reversal Signal formed…
When learning to trade certain patterns or trade set-ups, it’s best to start with “ideal” real-world examples to understand the logic of the set-up. Doing so allows us to recognize similar patterns or set-ups in real time as they develop, which calls us into trading action (entry, management, exit). Crude Oil recently (June 28) gave…
It’s time for another “Wednesdays with Wyckoff” Lesson! If you’ve been following along, you know that Richard Wyckoff – an early technical analysis thinker – often mixes entertaining if not colorful imagery into his practical lessons about supply/demand and stock market movement. Today’s lesson is no exception! In his Studies in Tape Reading series of…
I wanted to invite you to attend a Webinar (Wednesday, June 29th at 3:30pm CST)as part of the Trader Kingdom “Technical Trading 101” educational series where I will be discussing an important set-up/trade signal that often signals an early trend reversal. Entitled: “The Momentum Kick-off – Identify and Trade Trend Reversals Ahead of the Crowd,”…
Intraday traders must take into account volatility cycles when using the TICK intraday for trading decisions. An intraday TICK reading of plus or minus 1,000 – often a trading entry or exit signal for some traders – means different things at different times in terms of the volatility cycles of both the market (high or…
There seems to be a clean pattern repeating itself today that developed exactly one year ago which I’m finding interesting. Let’s take a look at the pattern then, compare it to now, and over the next few weeks, see if the current future pathway of the pattern plays out as it did back in July…
Well this is certainty a very interesting predicament – the Daily Charts of the three major US Equity Indexes are all showing EMA compression. Short-term daily moving averages are falling as long-term averages are rising, and price is distinctly trapped BETWEEN these averages that are on a collision course with each other and price will…