I describe trading candidates and possible action for selected, low-risk trade ideas to review.
The last time I posted on SnapChat (SNAP) I clearly highlighted the “Aggressive Bottom Fishing” taking place. Here’s the successful outcome of that bullish “fade/reversal” play as price crept strongly higher toward our falling EMA target. Let’s take a look and see what the plan is from here: Again, take a look at my August…
Ford (F) gives us plenty of educational examples of how a market sets up a trend reversal and the stages price goes through ahead of these excellent opportunities, especially for swing and even intraday traders. Let’s take a moment to study this perfect progression for our educational resources: Before we step inside this chart, take…
We like to buy pullbacks in strong trends with rising volume and momentum. A stock you’ve probably not heard of – Applied Optoelectronics (AAOI) – serves as the most recent example of this core trading concept. Here’s the uptrend, flags, and outcome so far as another “strong stock keeps getting stronger:” As explained in far…
Google (GOOGL) rallied a second time into a key reversal or “fade” set-up and delivered the goods. Let’s take a look at this “Divergence plus Upper Bollinger” pattern and learn what we can from this example. Most trades are either taken in the direction of a prevailing trend or against it. While I prefer pro-trend…
The “Three Push” Reversal pattern is one of my favorite chart patterns and set-ups to trade. When it works, it can produce explosive gains quickly – often overnight. Finisar (FNSR) gives us the most recent example of the Three Push Pattern on Negative Divergences via today’s collapse from the high instantly to a new chart…
If you’re a new trader interested in Reversal Strategies, SHLD has a powerful lesson example for you. Let’s study the setup and plot the trade as price continues its expected, tradable reversal off the lows. Sears Holding (SHLD) developed support a the $11.00 per share level. The FIRST thing you should do in planning a…
What’s about to happen with Consumer Staples?! We’re seeing a compression or triangle form between key moving averages ahead of a decisive breakout. The “EMA Squeeze” is one of my favorite patterns and we don’t see it often. While we can see a normal short-term TRIANGLE in price, the key factor is that the triangle…
How do we trade a bullish stock that’s breaking out? The easiest strategy is to buy pullbacks as price swings its way higher. Let’s see an example of how to do this quickly via the recent breakout in Amazon (AMZN): For a bit of background, take a moment to read my prior update: “AMZN Bullish…
Southwestern Energy (SWN) gives us a textbook example of the cycles a stock goes through from beginning to end. It’s part of the “Life Cycle” of a stock move, and we have few examples better than this one. Let’s highlight the progression from Accumulation through Realization to Distribution and back to where we started over…
We’re seeing a number of stocks build similar patterns but I wanted to highlight Harley Davidson as a great example of a stock building a base ahead of a rally on positive divergences. Let’s note the example and then plan possible targets now that buyers have revved up this stock from support. Here’s the Weekly…