August 27th’s intraday trading session gave us a great example of early recognition and trading tactics on Trend Days as they develop. Let’s take a brief moment to learn the lessons from this textbook trend day session which extends the educational reference archive post “21 Posts on Trend Days.” 5-min @ES E-mini ‘trend day’ basic…
In the trading and investment landscape, stocks that are initially strong tend to get stronger over time. GameStop (GME) shares continue to show a powerful example of this statement with today’s gap-up and breakout event. Let’s take a look at what brought us here and then study prior highs with structure on the Weekly Chart…
The market reversed course with an initial Bull Trap event after a breakthrough above the known 1,700 key index target level. Let’s step inside the failed breakout, identify key factors that hinted at the reversal, and compare this outcome to recent Bull Traps. Here’s the intraday SP500 index chart with Internals: In general, a breakthrough…
When studying price charts, it’s important to note historical ‘repeat’ patterns or echoes from the past, which is what we’re seeing right now in eBay shares. Let’s take a look at a prior lengthy “Box” pattern from 2011 along with the current “Rectangle Range:” Starting in 2011, eBay shares stalled into resistance at the $35.00…
What is a “Normal” monthly percentage performance for the SP500? Is the current performance for July normal or not normal? Is it totally unprecedented? I had a member ask a question along these lines and I thought it would be interesting to try to answer the question what is “normal” for the SP500. For that,…
With the SP500 recently closing up eight sessions in a row, let’s scan for the stocks in the SP500 that also showed the greatest number of consecutive daily and weekly chart closes to the upside to continue an uptrend in a bull market. These stocks may not otherwise show up on other types of scans…
A member asked a question regarding the short-term and intraday trends of the current SP500 and I wanted to take a moment to update the current “Market Structure” view of the trend and what reversed from the recent sell-off. We’ll start with the Daily Chart then note two intraday timeframes to compare ongoing Structure: Market…
We have one more educational lesson to add to our previous “Lessons from Three Bull Traps and Reversal Pathways” post – Crude Oil similarly triggered an initial breakout with divergences then returned back under the breakout trendline, signaling a potential collapse toward the lower support line. Let’s take a look at this development and add…
There have been three recent “Bull Traps” or initial breakouts that resulted in a sudden failure (reversal) of price and it’s always helpful to study the lessons from these recurring patterns. Let’s take a look at three intermarket examples (Treasuries, the US Dollar Index, and the US Stock Market) and find the insights these examples…
With all the literature out there, it’s easy to find trade set-ups and entry strategies, but the real money is often made with proper exit logic/strategies. What did classical thinker Richard Wyckoff say about closing a trading position? In his book Studies in Tape Reading, Wyckoff identifies four specific reasons to close a trade: “A…