I wanted to follow-up from the post “Lessons from Gold’s Three-Push Divergence into $1,800” from last week with an additional trading example of how to piece together the chart puzzle into a successful low-risk, high probability trade on the very short-term structure. Let’s take a look at the chart and study the lesson from the…
Intraday traders had a great example of the “Three Push” pattern complete with multi-swing negative divergences into an overhead “Round Number” resistance level in Gold. Let’s take a look at how the classic pattern set-up and learn the trading lessons from this event: First, let me say that REVERSAL style trades (like this) are inherently…
Well, here we are at the well-known Make or Break chart support at Dow 12,000. This is what I mean when I say refer to critical chart reference levels to make objective sense of all the good and bad – often confusing – economic/political headlines affecting the market at the moment. It’s really as simple…
This week’s lesson from Richard Wyckoff serves as a reminder of the importance of doing analysis (charting) on the broader stock market indexes instead of relying exclusively on the price chart of an individual stock you are considering trading. Why? And how does that affect us today? Let’s hear what Wyckoff has to say on…
So far, there’s been no stopping the bullish power trend in gold, but that doesn’t mean you should rush out and put on an aggressive gold position just because price continues to rise steadily. Let’s do a quick review of a simple retracement strategy you can use to minimize risk and maximize opportunities in the…
This week’s “Wednesdays with Wyckoff” lesson gives us another colorful description of an important trading principle – that of supply and demand. The lesson this week comes from Richard Wyckoff’s Studies in Tape Reading and explains how we can visualize supply and demand – absorption and distribution – in the context of a short-term move….
A reader recently asked me if we had a “Kick-off” Signal in Harley Davidson (HOG) and indeed we did – with powerful follow-through as anticipated. The entire event gives us a great lesson in the Kick-off Reversal Signal, with the special emphasis on two-timeframe confluence support (on a retracement) where the Kick-off Reversal Signal formed…
When learning to trade certain patterns or trade set-ups, it’s best to start with “ideal” real-world examples to understand the logic of the set-up. Doing so allows us to recognize similar patterns or set-ups in real time as they develop, which calls us into trading action (entry, management, exit). Crude Oil recently (June 28) gave…
Intraday traders must take into account volatility cycles when using the TICK intraday for trading decisions. An intraday TICK reading of plus or minus 1,000 – often a trading entry or exit signal for some traders – means different things at different times in terms of the volatility cycles of both the market (high or…
Do you know how to quantify price structure? It’s not a difficult concept at all, yet many traders miss the benefit of taking a moment to assess objective price structure in the context of a developing trend. Doing so allows you to assess objectively the next likely swing, and thus the most probable trading strategy…