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…
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…
Technical traders across the world are monitoring current US Equity Indexes as they interact with the “Zone of Resistance” from their prior 2011 price highs. Let’s take a quick check-up on where the “Big Three” markets stand at the moment in relation to “The Zone.” First, the S&P 500 which hasn’t quite cleared the Resistance…
AutoZone (AZO) is a stock I’ve been watching – and amazed by – for a while, mainly because it just doesn’t seem capable of a full trend reversal! Let’s take a look at the strongly trending price action from 2010 to present, and note the change in “angular momentum” or “angles of ascension” (trendlines) and…
It’s that time of year again! The Los Angeles Trader’s Expo is now two months away so it’s time to make plans now to attend! The mid-year Expo will take place from Wednesday – Saturday, June 9 – 12. The Traders Expos are great places to meet fellow traders, network with other traders and enthusiasts,…
Monday morning brings us another week-starting post from Andrew Horowitz as he shares his “Indicators the Disciplined Investor is Watching.” This morning’s posts focuses on charts and earnings, and the update is titled: “Earnings Season Trends and Directions.” Andrew writes: “Gold looks prime to rip higher as inflation concerns emerge and oil bulls are having…
In one of those strange occurrences that feels like you’re in the Twilight Zone, all four major US Equity Indexes are bumping into “Round Number” levels all at the same time. That’s generally an unusual occurrence.
So, it pays to take a quick look at all four indexes as they challenge these overhead levels – for better or worse!
As a follow-up from my prior “Best of 2009 Part 1” post, I’m pleased to present Afraid to Trade’s best posts of 2009 Part 2, spanning from February to March 2009: Educational Set-ups/Patterns: 5 and 15 Minutes of Downside Doom in the DIA Extreme Divergence and Rounded Reversal in USO US Oil Rounded Reversal in…
Tim Bourquin of Trader Interviews.com released a fresh, new interview entitled “Strategies of a Successful Swing Trader.” The 60-min interview covers some of Trader Evan’s specific rules and observations on execution and trade management, including what methods and indicators help pin-point opportunities. With permission, Tim allowed me to provide a brief clip of the full…
I often advocate pulling all the indicators off the charts – at least for a few minutes – and taking a ‘price purism’ look at any major price move.
This can give you clarity that others miss, especially if they are caught up in viewing what all sorts of indicators are saying. Indicators are important, but it’s helpful to assess the ‘character’ or structure of the market, which can be obscured by lines and oscillators.