What tends to happen when gold forms an intraday “Three Push” price pattern on multiple-swing negative divergences into an overhead “Round Number” price resistance level? Let’s take a look at another excellent example of this important trading concept/set-up that triggered successfully at $1,800 on August 11th and just recently on August 22nd: Take a moment…
Since uniting in 1998, US Equities have displayed a strong positive relationship with the 10-Year Treasury Note Yield, and we can gather insights from that relationship. Let’s start with the monthly frame and work down to the daily chart to assess the relationship and the current signals from this important Inter-market Pair: There’s a little…
I wanted to follow-up from the post “Lessons from Gold’s Three-Push Divergence into $1,800” from last week with an additional trading example of how to piece together the chart puzzle into a successful low-risk, high probability trade on the very short-term structure. Let’s take a look at the chart and study the lesson from the…
Intraday traders had a great example of the “Three Push” pattern complete with multi-swing negative divergences into an overhead “Round Number” resistance level in Gold. Let’s take a look at how the classic pattern set-up and learn the trading lessons from this event: First, let me say that REVERSAL style trades (like this) are inherently…
Traders of today can learn lessons from historical events where Politics and the Stock Market collided – with negative results. Current Congressional gridlock is threatening another potential market crash via two separate but related events: The US Debt Ceiling Negotiations ahead of August 2nd and the “Big Three” Credit Agencies warning that the US may…
What did Richard Wyckoff have to say about general trading rules? As you develop as a trader, your rules should become automatic and routine, especially during the trading day. Let’s take a look at another colorful quote from Richard Wyckoff as he discusses Trading Rules in Studies in Tape Reading: “A friend to whom I…
With bad earnings putting Bank of America (BAC) in focus today, what is the message from the triple-timeframe structure of the charts in the stock? Let’s take a look starting with the monthly frame and drilling down to the daily chart, noting key levels and lessons along the way. With the exception of a “Last…
This week’s lesson from Richard Wyckoff serves as a reminder of the importance of doing analysis (charting) on the broader stock market indexes instead of relying exclusively on the price chart of an individual stock you are considering trading. Why? And how does that affect us today? Let’s hear what Wyckoff has to say on…
So far, there’s been no stopping the bullish power trend in gold, but that doesn’t mean you should rush out and put on an aggressive gold position just because price continues to rise steadily. Let’s do a quick review of a simple retracement strategy you can use to minimize risk and maximize opportunities in the…
We’ve all been hearing conflicting analysis as to whether the market will “certainly” be going up or down in the near future, but the reality is that the market is caught in a “year to date” tug-of-war between buyers and sellers which has given us clear reference areas to monitor. Let’s cut through all the…