It’s rare when a particular moving average will capture (halt) the price action exactly, but these averages often serve as areas of support or resistance. Today’s action was no exception; in fact, the Dow tagged the 50 period MA and the Nasdaq ‘tagged’ the average almost to the penny before rallying sharply to close up…
Monday was an absolutely wild day for traders, with a large volatility price swing. As hectic as the trading day was, an interesting pattern emerged. The intraday low coincided with the rising 50 EMA and with the round number 13,300. This was a significant support area. The high of the day coincided with the flattening…
I had to point the Blackstone IPO (BX) chart out to readers, simply for its major irony to me. I watched a television report where it showed a montage of news sources that were literally giddy with excitement discussing the Blackstone Financial Group IPO and how it will make investors so much money and how…
Dr. Steenbarger recently posted on the topic of “Trading Regimes,” which are ‘relationships which exist between one or more variables and prospective price changes in a trading instrument.’ The relationships tend to be temporary, and one must discover various relationships and be open to the possibility of variance in analysis. Rather, regimes should be analyzed…
Here are some daily and weekly views of some of the major indexes for your study: Daily Charts of the Dow and Russell 2000: Weekly Charts of the Russell and S&P 500: As an added bonus, consider pulling trade ideas from these strongest industries (via Prophet.net) over the last three months: Notice the major jump…
Dr. Steenbarger recently shared his personal story with readers regarding a recent life-threatening medical emergency he encountered. We are so glad he is doing better and that he has shared his experience with us, including lessons learned. Not only do the three lessons relate back to trading, but to life in general. Dr. Brett’s three…
“If you are in the right sector at the right time, you can make a lot of money very fast” –Peter Lynch Sector Rotation Theory can help you invest (or trade) in the key sectors that are outperforming the market right now. There are always stocks in certain sectors that are “on fire” or “out…
I admit that I have not studied EquiVolume Charts extensively, so I wanted to give a brief overview and cite some relevent sources for further study. What differentiates an EquiVolume Chart from a standard Candle or Bar chart is the fact that the volume data is factored into the shape of the ‘bar’ or box,…
Here are a few bonus charts for your education: Potash (one of my darlings) We were stopped out of a 7+ day swing trade in Potash today when price was identified as ‘parabolic’ and we began trailing a stop beneath yesterday’s low which worked until today, and this method saved about $2.00 of profit that…
Today did some technical damage to the major indexes, with the Dow being spared breaking its 20 period moving average, as the other indexes have done. We are seeing possible unwinding of developing momentum divergences in many of the indexes (especially the Dow). We also see price rejection in the indexes as well as we…