I know that today’s trading was frustrating for many reasons, but by the end of the day, we’d developed a successful gap-fade trade, a couple of bear flags, and a couple of positive momentum divergences – all of which are worth reviewing for educational purproses to build pattern recognition skills for the future. DIA 5-min…
To the surprise of many, the US Dollar Index – once feared to be in a hopeless downtrend – has resurfaced to new life and is forming a potentially bullish continuation pattern on strong technical strength. Let’s look at the daily chart to see these developments. US Dollar Index: Daily Chart Price bottomed in July…
Financial Giant turned bank Goldman Sachs (GS) formed a fresh five-year closing low on an interesting triple-swing positive divergence on the daily time frame. Let’s view this development as well as a monthly chart spanning back to 2001. Goldman Sachs (GS) Daily: Goldman had strong support about the $155 level, but once that broke cleanly…
With another week behind us, let’s take a look at some key insightful blog or financial posts courtesy Newsflashr’s Blog and Business pages. Dr. Brett Steenbarger at TraderFeed writes Learning to Trade: Viewing Yourself, Reviewing Your Trading as well as Learning to Win at Trading by Learning to Lose provide insights into the psychological world…
Much has been made about the recent rally into resistance on lower volume, and the subsequent sharp correction following Tuesday’s election. Let’s step inside this situation for clues on how volume could have helped you anticipate a reversal… or at least suspected that ‘things weren’t quite right’ with the recent rally. Let’s step inside the…
Just a day after I asked the same question, Adam Hewison of the Market Club released a nine-minute video and analysis of crude oil and explained their trading signals as well as tactics for trading with the recent trend that are of great interest. The video is entitled: “Where is the Bottom in Crude Oil”…
As depressing for the bulls as today’s equity index price action was, it allowed us to witness a near-perfect “trend day down” example. Let’s at least learn a lesson from today. Dow Jones 5-minute chart: Where do I start? First, the day began rather quietly, with price being beneath all key moving averages on the…
I must admit I’ve been shocked by the massive, unrelenting sell-off in crude oil. Let’s look at the current daily chart structure to see what clues we can glean from price information. Daily Crude Oil: Price peaked above $145 in July prior to the global recession realization (or anticipation thereof) and has slid to fresh…
Now that the United States has a new President Elect – Barack Obama – let’s take a current look at the Dow Jones average and take note of the current counter-trend retracement rally up into potential resistance areas ahead… and view an interesting triangle pattern that occurred early last night in the futures market. First,…
It’s certain that the US Election will have an effect on the equity markets and markets beyond, as the market anticipates the next president’s administration and shifts to reflect perceived policies he might create. Let’s turn to the current state-by-state polls to give us an overall electoral vote projection to see who that next president…