Let’s take a quick look at Baidu (BIDU) which has turned out to be one of the stocks that “keeps on giving” to investors and traders in 2009. Let’s learn a couple of lessons from its steady uptrend price rise so far.
There have been two interesting patterns in the recent chart both in crude oil and in the US Oil Fund (exchange traded fund), including a “Bear Trap” and today’s “Stop Pop” and price breakout. Let’s take a look.
With today’s break to new highs both in the Dow and the S&P 500, I thought it would be interesting to take a look at the 12 most recently “failed” or “busted” sell signals in the S&P 500 to see if we can note a pattern.
Reference back to my prior post on “Recent Failed Short-Sale Signals and Short Squeezes in the SPY” and “If History Repeats, Will it Mean New High for SP500?” (answer “yes!”) for more perspective.
The morning session – continuing over from a pattern into yesterday’s close – gave us an excellent example of a bear flag that I’d like to show you as an educational reference on trading tactics and “Enhanced Flags.” Let’s take a look:
Like October 7th, Friday’s intraday trading action in the SPY or @ES futures gave us a range day, where the best trades came from ‘fading extremes,’ or particularly, in watching for tests of Bollinger Band extremes on TICK and/or momentum divergences. I described these tactics in a previous post “Bollinger Bands, Divergences, and Candles on Range Days.”
I wanted to share a lesson from today’s “Idealized Trades” report – namely on the importance of recognizing “Type of Day Structure” which then leads you to adopt more appropriate trading strategies.
For example, on today’s range day trading environment, the best trades came from watching these three concepts: Bollinger Band Extremes, Candle Shadows or Reversal Candles, and TICK or Momentum Divergence. Let’s take a quick look at some of the trades you could have taken using a combination of these concepts.
Recently, I had the opportunity to interview top trader Larry Connors, CEO and founder of TradingMarkets.com, and author of many popular trading books including Street Smarts (with Linda Raschke), High Probability ETF Trading, How Markets Really Work, and Short Term Strategies that Work. His full biography page (link) is listed at Trading Markets.com.
I wanted to do a quick update post to show the “Rounded Reversal” pattern that formed recently on the intraday charts in GLD (Gold Tracking ETF). Let’s see it on the 15-min frame.
With Gold (and the Gold ETF of GLD) making a sudden and sharp reversal back to the downside, I thought it would be a good idea to highlight the “Three Push” pattern – one of my favorite patterns – that preceded the reversal and how you might have anticipated and then traded the reversal intraday. Let’s see it.
I wanted to show a quick ‘advanced’ chart of the US Dollar Index to note different levels of Fibonacci ‘extension’ confluence at the $77 level which we need to watch. Let’s take a look: