One of the main activities that trip up traders, especially new traders, is the concept of continual price movement in one direction without meaningful pullbacks – also known as “powerful trends,” “creeper trends,” or “positive feedback loops.” Let’s take a look at the current situation and put it in the context of prior S&P 500…
Amazon’s (AMZN) chart structure is creating an interesting breaking point of tension between the higher and lower timeframes. While the daily chart argues for potential reversal higher, the weekly chart shows a barrier of overhead resistance that must be broken before a reversal higher can take place. It’s a good example of how to incorporate…
If you use Intermarket or Cross-Market Analysis in your trading or investment decisions, you’ve probably noticed something very strange over the last few months. Let’s take a look at “What’s Going Wrong” from a classic Intermarket perspective which leads us to “What’s Gotta Give” in terms of a building reversal. First, the closer perspective of…
Dual intraday divergences can be very helpful in pinpointing short-term turns (reversal) in price which create ideal low-risk, high probability trade set-ups for the intraday index futures or ETF trader. Let’s highlight a good example reference from today’s action on January 13th using the @ES Futures contract as our proxy. Click for full-size image. Without…
Gold recently broke from its larger Symmetrical Triangle daily chart pattern, but the S&P 500 (Stock Market) hasn’t followed suit yet. Let’s update the current “Bigger Picture” Triangle Price Pattern, note key boundaries, and what to expect next. First, the S&P 500 standard Daily Chart: A Symmetrical Triangle Price Pattern – or any major consolidation/compression…
It’s understandable if you’ve forgotten about the bond market with all the activity centered on the stock market along with the recent multi-month sideways “rectangle” pattern in Bond Prices, but if you haven’t checked a recent leading Bond ETF chart, now might be a good time to do so. Let’s start with the popular 7-10…
Gold prices ejected downward from their Symmetrical Triangle bigger price pattern this week, resulting in a continuation breakdown move towards expected lower targets. Let’s take a look at the original “Symmetrical Triangle” prior update (ahead of the break) and now update what’s happened and where we are now, starting with the “Pure Price” pattern itself:…
How have market internals given us clues about the last two short-term stock market reversals, and what are they saying currently? Let’s check out the 30-min intraday S&P 500 Chart of Breadth-based Market Internals: What we’re seeing above (click for full image) is the S&P 500 with the NYSE Breadth and NYSE Volume Difference of…
Not to be outdone by the recent S&P 500 triangle pattern, Gold is forming a broader Symmetrical Triangle Consolidation Pattern that we’re following closely for any sign of a breakout from the converging trendlines. Let’s look at this situation from two perspectives, starting with the “pure price” intraday level: When discussing a Symmetrical Triangle, it’s…
When you’re studying a price chart to assess trading opportunities, what is your eye drawn to first? Is it the indicators? Is it moving averages? How about candles? And when you are looking to put on a trade, are you taking a moment to address the context in which you’re placing the trade? Is it…