You certainly don’t see patterns like this every day! Lesser-known stock DS Health Care (DSKX) just jumped to the top of one of my stock scan lists and I wanted to highlight the sweeping “Parabolic Arc” which is one of my favorite broader price patterns. Here’s the “Pure Arc” – we’ll delve into specifics on…
As traders, one of our responsibilities is to spot patterns in the market and then exploit them as long as they keep occurring. After spotting a specific pattern, we use it to guide our trading decisions until the pattern fails and a new one emerges in its place. There’s a specific short-term pattern that’s been…
How in the world do you make any actionable sense at all of this pattern seen below: Is it a Diamond? Is it a flat range? Where are the Trades? What in the world is going on?! When markets consolidate into a Sideways Trading Range, it can be difficult to feel confident about any trade…
When we last left Crude Oil in our updates, it was trading down into a known support level and we were planning for a support-bounce or else support-break outcome that would set up our next trade. With Crude Oil indeed bouncing off our support level, let’s step inside the price action to study a perfect…
There’s a quick and easy way to chart Volatility and assess whether we’re in a low or high volatility period and what’s likely to happen next in the cycle. Price alternates between periods of High Volatility to Low Volatility and it’s important to adjust your expectations and trading strategies as necessary. Let’s see one of…
What happens when price rallies into resistance with declining (diverging) volume? Let’s step inside this situation for clues on how volume can you anticipate a reversal… or at least suspected that ‘things aren’t quite right’ with price. Let’s step inside the Dow Jones Index on the 30 min chart: Price began a large momentum burst…
If you’re finding the current low volatility environment boring or lackluster, wait a few more days or weeks! The Bollinger Band/Sigma Volatility Chart model is suggesting a near-term spike in Volatility. Let’s update the chart of the S&P 500 and note what’s happened and what’s likely to happen next: If you’ve been trading for any…
If you’re trading Gold or the ETF GLD this week, you probably are suffering a case of whiplash from two traps that triggered this week. Let’s study these two events and then note the key Daily Chart planning levels to recuperate and get settled for the next move. Here’s the Hourly Chart which highlights the…
If you’re a developing trader, how would you describe your trading style? If you’re a new trader, it can be helpful to learn what different types of trading strategies are available and then focus on learning and practicing the ones that match your personality, risk-tolerance, and current understanding of the market (which will evolve in…
How do you identify and avoid a Failed Breakout or getting caught in a Bull Trap? Akamai Technologies (AKAM) – a strongly trending stock – offers a key lesson in this important topic. Be sure to study Part 1 of the “Lessons We Can Learn from the Breakouts in AKAM.” Failed breakouts or traps scare…