We have one more educational lesson to add to our previous “Lessons from Three Bull Traps and Reversal Pathways” post – Crude Oil similarly triggered an initial breakout with divergences then returned back under the breakout trendline, signaling a potential collapse toward the lower support line. Let’s take a look at this development and add…
There have been three recent “Bull Traps” or initial breakouts that resulted in a sudden failure (reversal) of price and it’s always helpful to study the lessons from these recurring patterns. Let’s take a look at three intermarket examples (Treasuries, the US Dollar Index, and the US Stock Market) and find the insights these examples…
It’s helpful to study the trades of the day to learn important lessons we can apply to future sessions. We want to know if we made any mistakes and thus need to correct them, or whether the market gave a valid trade signal yet real-time developments overruled the original trade, resulting in a loss. Sometimes…
As a trader, I’m drawn to key price or trendline inflection points that generate simple “IF/THEN” strategy planning events depending on how price interacts at a critical reference level. At the moment, Amazon (AMZN) shares are trading down from a critical inflection point that will set the stage for short-term trading strategies for the stock….
What looks like a “can’t miss” trading opportunity on one timeframe may be an equally compelling “can’t miss” opportunity on a higher timeframe, but in the exact opposite direction. In other words, what looks like a grand breakdown opportunity on a Daily Chart may be a high probability bull-flag retracement set-up into support on the…
If you use the NYSE TICK (or related Market Internal) in your trading decisions or analysis, it’s important to note changes in the indicator that occur as a result of volatility. In other words, a registered TICK reading of plus or minus 1,000 (a popular level) means one thing in a low volatility environment and…
The S&P 500 Index began trading in a Rising Range pattern as we turned the corner into December and so far has continued bouncing between the trendline boundaries of the pattern. Let’s take a moment to learn a key trading lesson from recognizing and trading this popular price pattern – the tip is to drop…
December 4th’s intraday trading session provided an intraday reversal opportunity and I wanted to take a moment to review the main lessons in anticipating – in real time – and then trading an intraday stock market reversal. Let’s review the steps a market tends to take prior to an intraday reversal and then highlight the…
What is the current “Market Structure” and why will the next swing be so important to determine the trend structure for the “Big 3” US Stock Market Indexes? Let’s take a look at core market structure and what the next price swing will reveal with regard to a bearish reversal or bullish trend continuation. Here’s…
If you are an intraday trader and use the NYSE (or related) TICK indicator in your trading decisions, it’s very important to calibrate important TICK Levels with respect to volatility. In simple terms, a TICK Value of 1,000 means different things during periods of high or low broad market volatility, and you can easily make…