Although the next chart may seem garbled, it is actually detailing recent simple bull and bear retracement patterns on the 15-minute chart. This serves as a great educational example: I also call bull and bear flags “lightning bolts,” though technically I should only call bear flags lightning bolt patterns because of the equivalent downwards thrusts….
Crude Oil prices slipped off the recent $100 per barrel record, and are now completing a sell swing lower. But how long will the recent sell swing last? New price highs NOT confirmed by new momentum highs Resistance is clearly at $100 per barrel Rising trendline has been broken (beneath $96) Rising 20 period moving…
I was reading Mark Douglas’ book Trading in the Zone and came across a most perplexing yet interesting quote I thought I should share. In chapter 7, Douglas is discussing “The Trader’s Edge” and about certainty and writes the following: “[Traders often] crave the sense of certainty that market analysis appears to give them. The…
Apollo Group (APOL) has shown amazing relative strength in the current market environment, and has actually ‘launched’ to new highs not seen since 2005. Having nothing to do with space exploration, the Apollo Group is actually an educational ‘umbrella’ company, with subsidiaries such as the University of Phoenix and Insight Schools. It provides education at…
Despite all the bad press and media in terms of “recession” and “bankruptcies” as well as technical analysis pattern breakdowns, the market has shrugged off all this news and rallied strongly the last two days. Here’s a look at a “Swing Chart” I view in TradeStation: Despite being in a confirmed downtrend, and making new…
Apple Inc (AAPL) dealt some pain to traders who were short Apple stock or options today with a rambunctious end-of-day rally that took price where the proper ‘short-entry’ occurred. Typically, you want to short moving average (or support) breakdowns at the point of confirmation, or break-point, which would have been just above $180. My guess…
Today’s intraday action was quite nauseating, I thought, in terms of the early swing up, mid-day swing down, and then strong rally into the close. It made for an interesting chart, but also made many traders nautious. First, let’s pull the perspective back to the daily chart and then drill down: New Momentum Low New…
The market has behaved extremely poorly in 2008, but do you know how dramatic the decline has been for 2008? Let’s compare major US Markets on a percentage basis: Both the NASDAQ and Russell 2000, which are more volatile and have higher beta, often lead the market both up and down. If that is true…
Earlier, I highlighted a momentum divergence in the DIA (Dow Jones ETF) which resolved as expected to the upside. However, shortly after completing that divergence pattern and achieving its target, the market sold off extremely hard and beyond any technical analysis predictions. Notice that as price made lower lows on the intraday chart (which later…
As of Noon Eastern, a positive momentum divergence has been forming on the DIA (Dow Jones ETF) chart on the 15-minute time frame which could coincide with the potential for higher prices in the very near future. This bit of information is also in conjunction with monthly support levels and daily/weekly support levels. It appears…