I’ve been covering the price breakout and impulsive trend move up for Caterpillar (CAT) shares. Recently, shares reached a key price target which gives us a chance to study a quick lesson and plan the next potential swing for this Dow Jones stock. Let’s start with the Triangle Pattern Target that has been achieved (and…
Bull Traps are the enemy of Breakout Traders, and it’s important to learn the educational reference lessons when these scenarios trigger. Goal #1 is to protect yourself from escalating losses on a breakout opportunity that failed and Goal #2 (for aggressive traders only) is to profit from a trade outcome failure by playing into the…
With today’s Stick-Save intervention buying power propelling the market higher after a morning downside gap, let’s take a quick look at a few similar examples to compare what happened then to what may be playing out for the rest of the day. Doing this exercise can help you focus on concepts rather than the tiny…
For intraday traders, it’s often difficult to buy a strong stock in a strong intraday trend. The minute you buy will be the minute the trend reverses, you think. However, this can be an excellent strategy for new traders to practice, particularly when trying out trading pro-trend or retracement strategies. Let’s take a look at…
In the series of posts on “Chart Art,” let’s take a look at a confluence of Andrews Pitchfork lines into a key level for Google (GOOG) shares. We’ll use this as a focal point for additional analysis beyond the converging lines. The chart above is the combination of four Andrews Pitchfork tools using the standard…
I wanted to highlight another example of the “Timing Intraday Reversals with TICK Channels” concept which just triggered from yesterday’s low to today’s mid-day bearish reversal. For additional background on this important concept for intraday traders, see my prior update: “TICK Deterioration and Intraday Reversals” Here’s the current example and outcome using the @ES Futures:…
One of the greatest challenges as a trader is to determine whether a trend in motion is likely to continue or reverse. Reversing a trend is a process, similar to reversing a freight train, and a stock tends to signal reversals we can see on a price chart. Let’s take a closer look at four…
One of my favorite short-term trading set-ups is the concept of a lower timeframe multi-swing divergence into a known higher timeframe support level. Crude Oil finally bounced strongly off support – after extending its positive divergence pattern – and we now monitor how high the bounce will take price. Let’s take a look at this…
For intraday traders of stocks, ETFs, or index futures, it can be very advantageous to compare mini-trends in the NYSE TICK with the S&P 500 (or Dow, NASDAQ, or Russell 2000). One main way of studying TICK Trends is to spot a clear deterioration or visual trend divergence with price (the index) and the NYSE…
One of the main principles of Technical Analysis is tha t”trends, once established, have greater odds of continuing than of reversing.” Recent price activity in Corn, Oat, and Wheat provide evidence of this concept, and even if you don’t trade these markets, it’s a good idea to take a look at the recent “violent” price…