In the previous research post on “Buying or Fading a Keltner Channel Breakout,” I described a simple breakout (or ‘fade’) strategy and revealed the performance metrics on the strategy. In this post, I wanted to dig a little deeper to see if we could reduce some of the larger losing trades and try to enhance…
If price pushes above an upper Keltner Channel – which is an indication of Average True Range and Volatility – should we buy the breakout in hopes of an impulsive upward move or else ‘fade’ the breakout by short-selling an overbought/extended swing? A quick strategy backtest with simple parameters gives us the foundation to answer…
We’ve seen more “parabolic arc” or emotion-fueled impulsve ‘blow-off’ price movements lately, and DDD gives us another example of how these patterns form and resolve. We can also take a look at basic trading tactics of how to manage risk, avoid emotion (which fuels the pattern) and seek to profit for those with strong risk-tolerance….
How do you recognize an intraday “Rounded Reversal” developing in real time? Let’s take a look at the near-textbook example from October 1st and learn three factors that tend to precede – or trigger – an intraday Rounded Reversal or “Failed Trend Day” pattern. Here’s the 5-min @ES Futures chart with the three main factors…
When playing a breakout trading opportunity, a trader must be aware of the possibility of a “Kiss” outcome where price retraces directly back to the trendline only to continue the breakout. There’s a couple of trading lessons we can learn from Gold’s recent “Breakout and Kiss” Outcome, so let’s take a look at what insights…
When studying a stock or a market to trade, we often need to study the current volatility cycle to determine which strategy to use – or avoid. Measuring volatility is especially important if you wish to use any sort of option strategy with a stock or ETF. Let’s take a look at three quick tools…
Even if you don’t trade Netflix (NFLX), you’ll probably find it interesting that shares are challenging all-time highs into the impressive $300 per share level from 2011. Let’s take a quick overview of the “Battle to Break $300” in spite of the Divergences and Bearish Rising Wedge Pattern in motion currently. Here’s a Weekly View…
For traders new to trading chart patterns, a textbook example of the Bearish Rising Wedge pattern developed in textbook fashion which can serve as an excellent real-world example for you. Let’s take a moment to identify the Bearish Rising Wedge Pattern and how it played out perfectly in HPQ shares. Here’s the bigger picture on…
August 27th’s intraday trading session gave us a great example of early recognition and trading tactics on Trend Days as they develop. Let’s take a brief moment to learn the lessons from this textbook trend day session which extends the educational reference archive post “21 Posts on Trend Days.” 5-min @ES E-mini ‘trend day’ basic…
The market reversed course with an initial Bull Trap event after a breakthrough above the known 1,700 key index target level. Let’s step inside the failed breakout, identify key factors that hinted at the reversal, and compare this outcome to recent Bull Traps. Here’s the intraday SP500 index chart with Internals: In general, a breakthrough…