One of my favorite intraday patterns is the bull and bear flags. How do you identify and then trade these patterns? Let’s focus just on the bull flag for this post. Why do I like this pattern? It is relatively simple to identify, only uses price (no complex indicators), and the stop-loss along with profit…
Traders frequently combine volume studies with price studies and indicators to gather a larger picture of where prices may be headed in the future. In the futures market, traders can utilize signals from Open Interest in combination with price and volume for and enhanced picture. Open interest for any futures contract, be it index, agricultural,…
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…
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…
Not only is Akamai Technologies (AKAM) triggering another successful breakout trade right now, but we can step inside the history of repeated breakouts and learn a real-world trading lesson from this stock from prior outcomes. Let’s start with the Weekly Chart, highlight the breakout, and focus on what this stock can teach us now: I…
Netflix (NFLX) broke powerfully higher overnight on earnings, continuing a multi-year uptrend and confirming the concept of “what is strong tends to get stronger.” Let’s view the Monthly, Weekly, and now Daily Chart to highlight where price has come and where it might be going now. As a bonus, we’ll step inside today’s intraday action…
Twitter (TWTR) is back in the news with a bullish breakout and a strong recent rally. There’s an important pattern in price, momentum, and volume aligning that suggest even higher price highs are more likely to come in the near-term future. Let’s see the pattern and chart the levels in the relatively new stock Twitter…
It’s easy to get caught up in thinking “The market will go up forever!” when in reality, the rules of gravity have not been permanently amended. What goes up must come down, and trends (even intraday ones) must eventually retrace. Divergences are great warning signs that a mature trend may soon reverse. Let’s revisit this…
A reader asked me to take a look at MannKind (MNKD) and I wanted to highlight a couple of important lessons from the stock and what levels are important at the moment. Let’s learn a quick lesson about momentum divergences and trend reversals from this stock. Let’s take this chart one step at a time….
You may not be aware that Disney (DIS) is one of the strongest trending stocks in the Dow Jones and S&P 500 right now and has been since its breakout in mid-2012. Let’s start with the Monthly Chart (where the magic is) and study this stock from there: I wanted to focus this post on…