I describe trading candidates and possible action for selected, low-risk trade ideas to review.
Under Armor topped our stock scanning list this morning, and I wanted to expand on the analysis with a discussion – and trade planning – from the Weekly and Daily perspective. We’ll start with the weekly chart structure and trend: The trend remains bullish to the upside as evidenced by higher price lows and higher…
Like many other similar stocks today, Netflix (NFLX) generated a potential breakout buy signal on a shattering of overhead resistance. Let’s focus our attention on a near-term upside target along with an Open Air breakout pathway should the next higher target also fail to hold the onslaught of recent buying pressure. Here’s a simple planning…
Keurig Green Mountain (GMCR) triggered a Bull Flag support bounce and breakout play on the Daily Chart I wanted to highlight – it can serve as a candidate and great educational lesson. Let’s study the chart, note the levels, and learn a quick lesson from this popular pattern. Generally, a breakout is a sign of…
Bull Traps are the enemy of Breakout Traders, and it’s important to learn the educational reference lessons when these scenarios trigger. Goal #1 is to protect yourself from escalating losses on a breakout opportunity that failed and Goal #2 (for aggressive traders only) is to profit from a trade outcome failure by playing into the…
With today’s Stick-Save intervention buying power propelling the market higher after a morning downside gap, let’s take a quick look at a few similar examples to compare what happened then to what may be playing out for the rest of the day. Doing this exercise can help you focus on concepts rather than the tiny…
One of the greatest challenges as a trader is to determine whether a trend in motion is likely to continue or reverse. Reversing a trend is a process, similar to reversing a freight train, and a stock tends to signal reversals we can see on a price chart. Let’s take a closer look at four…
One of my favorite short-term trading set-ups is the concept of a lower timeframe multi-swing divergence into a known higher timeframe support level. Crude Oil finally bounced strongly off support – after extending its positive divergence pattern – and we now monitor how high the bounce will take price. Let’s take a look at this…
For intraday traders of stocks, ETFs, or index futures, it can be very advantageous to compare mini-trends in the NYSE TICK with the S&P 500 (or Dow, NASDAQ, or Russell 2000). One main way of studying TICK Trends is to spot a clear deterioration or visual trend divergence with price (the index) and the NYSE…
One of my favorite short-term trading (breakout) patterns is the “EMA Squeeze” or “EMA Compression” Play. Priceline shares (PCLN) are forming one of these rare but tradable patterns on the Daily Chart so let’s take a look, set up parameters, and study the lesson from the future outcome. Here’s the Daily Chart broader picture in…
How do you recognize an intraday “Rounded Reversal” developing in real time? Let’s take a look at the near-textbook example from October 1st and learn three factors that tend to precede – or trigger – an intraday Rounded Reversal or “Failed Trend Day” pattern. Here’s the 5-min @ES Futures chart with the three main factors…