The “Rounded Arc” Reversal Pattern is one of my favorite trading opportunities when it appears. Why? Let’s take a look at Gold and note the ideal symmetry and forecasting aspect of this key reversal pattern: Gold established a base at the $1,250 level and then broke higher through April toward our $1,300 target. From there,…
Google (GOOGL) rallied a second time into a key reversal or “fade” set-up and delivered the goods. Let’s take a look at this “Divergence plus Upper Bollinger” pattern and learn what we can from this example. Most trades are either taken in the direction of a prevailing trend or against it. While I prefer pro-trend…
The “Three Push” Reversal pattern is one of my favorite chart patterns and set-ups to trade. When it works, it can produce explosive gains quickly – often overnight. Finisar (FNSR) gives us the most recent example of the Three Push Pattern on Negative Divergences via today’s collapse from the high instantly to a new chart…
“Stocks which are weak and downtrending tend to get weaker and go lower.” That’s precisely what’s happening right now with the gap-down collapse in L Brands (LB). Here’s the weekly chart, a key trading lesson (on reversals and downtrends), and what’s going on now. L Brands (LB) was a “strong uptrend stock getting stronger” through…
If you like “fade” trades or capturing sudden snap-back set-ups, you’ll want to view this on NVIDIA. Let’s start with the snap-back and focus on the evidence that build the strong case for the snap-back we’re seeing: We prefer trading WITH the trend instead of against it, but we also understand that’s not the best…
If you like trading Bull and Bear Flags as I do, you’ll probably want to look at Baidu (BIDU) right now. First, we have a textbook bear flag pattern to study and today we have a potential bull flag trade in motion. We have a special page for Bull and Bear Flags in our Educational…
If you’ve ever wondered why we chart momentum and volume along with price, BMY tells us why. Today shares literally collapsed back to the lows, down from the prior swing highs. Wouldn’t it have been nice to know this was a distinct possibility? Divergences warned us many days in advance. Let’s study this example from…
Crude Oil gives us a textbook example of a reversal pattern – with negative divergences – into resistance. If you missed trading this move, that’s fine as this pattern will repeat in various markets – including yours. Here’s the pattern and combination of reversal factors for your educational benefit: First, the $53/$54 price level in…
We’ve had NVIDIA (NVDA) on our trading radar for quite some time because it has consistently been a “strong stock getting stronger.” Our core trading philosophy at Afraid to Trade is that trends – once established – have greater odds of continuing than of reversing. We love trading – and teaching pullback strategies – on…
If you’re a Netflix NFLX investor, you’re pleased that share prices are making a bold run for new all-time highs. If you’re a trader, you’ve had good opportunities to trade pullbacks and breakouts in late 2016. Let’s update our plan for Netflix NFLX and see what the next swing may bring into 2017: First, take…