In a follow-up to yesterday’s “Color-Charting the S&P 500 Trend Structure with 100 week Moving Average,” I received a few suggestions to normalize the chart using percentage terms – and that’s an excellent idea. Let’s take a look not just at the recent bull/bear trend structure and percentage performance of the S&P 500 to its…
Following up from prior research “Research on Buying or Fading Breakouts from the Keltner Channel,” let’s take a different perspective and view the S&P 500 from the perspective of a longer-term Keltner Channel indicator. Here’s the S&P 500 with an expanded Keltner Channel (ATR) Band: While the standard Keltner Channel indicator calculates and displays two…
Despite the volatility in Apple (AAPL) shares, price has maintained a consistent trend structure with plenty of bull and bear flag trading opportunities (see my prior update from November) along the pathway. Let’s update our Apple price structure and key levels and note the bull flag that triggered this morning. I color-coded the downtrend structure…
Wednesday’s “Fed Day” surprise resulted in a 43 point intraday range for the S&P 500 along with a 364 point intraday range (high to low) in the Dow Jones Industrial Index. While certainly extreme, how does a 43 point intraday range compare with the past? Let’s take a look at the S&P 500 Range Volatility…
In the previous research post on “Buying or Fading a Keltner Channel Breakout,” I described a simple breakout (or ‘fade’) strategy and revealed the performance metrics on the strategy. In this post, I wanted to dig a little deeper to see if we could reduce some of the larger losing trades and try to enhance…
If price pushes above an upper Keltner Channel – which is an indication of Average True Range and Volatility – should we buy the breakout in hopes of an impulsive upward move or else ‘fade’ the breakout by short-selling an overbought/extended swing? A quick strategy backtest with simple parameters gives us the foundation to answer…
We’ve seen more “parabolic arc” or emotion-fueled impulsve ‘blow-off’ price movements lately, and DDD gives us another example of how these patterns form and resolve. We can also take a look at basic trading tactics of how to manage risk, avoid emotion (which fuels the pattern) and seek to profit for those with strong risk-tolerance….
If you use the NYSE TICK in any way for intraday or swing trading decisions, it’s essential to update how you measure TICK readings in the context of periods of high or low volatility. One can’t assume a TICK reading of +1,000 or -1,000 is equivalent or even a valid trading entry/exit signal in all…
We continue to watch Amazon.com (AMZN) trade within what seems to be the latter stages of a parabolic arc or explosive vertical impulse pattern. I’m a big fan of these “parabolic arc trendline” patterns – let’s update the current chart of Amazon’s (AMZN) textbook parabolic arc trend structure. Amazon.com shares have traded steadily between rising…
Binary Options are unique because you have the entire trading universe at your fingertips. Unfortunately that can also lull you into a false sense of being comfortable in trading such a large group of choices. The reality is somewhat different; too many choices can also lead to a lot of confusion and chaos if not…