I’m a big fan of Parabolic Arc Patterns or Parabolic Trendlines, and FedEx (FDX) shares have morphed into a classic Arc Trendline Pattern after its weekly breakout as buying pressure accelerated. Let’s start with the initial breakout then study the Arc Pattern currently in motion: After a lengthy Ascending Triangle from 2011 until the 2013…
Chipotle (CMG) offers plenty of lessons of pro-trend trading tactics such as retracement and breakout trades in a strongly trending stock. Let’s start with the Weekly Chart and study the lessons and current activity in this strongly trending popular stock. The main concept I wanted to highlight is the “persistence of rally” or sustained uptrend…
In our last update of Google (GOOG), we noted the “Sideways Range and Key Levels for Trading Google,” and we now note the upside breakout of the trading range not just to new all-time highs, but beyond the $1,000 per share reference level which is sure to generate headlines. Let’s update the Google chart with…
Speaking of instability of Market Internals from today’s earlier post, let’s take a moment to update our TICK Volatility Charts and make note of the recent changes to the popular market internal. We’ll start with a view of the “TICK Volatility” chart: For a quick review of how to interpret the data, see the following…
When assessing Market Internals, it’s helpful to classify the current state of internals as “stable” or “unstable” as I’ve shown in prior updates. The last week has shown a period of instability or “chaos” in Market Internals due to the recent volatile price action surprisingly continued within a clear trading range. Let’s update the “Big…
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…
When playing a breakout trading opportunity, a trader must be aware of the possibility of a “Kiss” outcome where price retraces directly back to the trendline only to continue the breakout. There’s a couple of trading lessons we can learn from Gold’s recent “Breakout and Kiss” Outcome, so let’s take a look at what insights…
When studying a stock or a market to trade, we often need to study the current volatility cycle to determine which strategy to use – or avoid. Measuring volatility is especially important if you wish to use any sort of option strategy with a stock or ETF. Let’s take a look at three quick tools…
Even if you don’t trade Netflix (NFLX), you’ll probably find it interesting that shares are challenging all-time highs into the impressive $300 per share level from 2011. Let’s take a quick overview of the “Battle to Break $300” in spite of the Divergences and Bearish Rising Wedge Pattern in motion currently. Here’s a Weekly View…
For traders new to trading chart patterns, a textbook example of the Bearish Rising Wedge pattern developed in textbook fashion which can serve as an excellent real-world example for you. Let’s take a moment to identify the Bearish Rising Wedge Pattern and how it played out perfectly in HPQ shares. Here’s the bigger picture on…