It’s relatively rare when a monthly trendline or moving average is tested by the major US Stock Market Indexes, but we currently have the Dow Jones testing the rising 20 period moving average, which either reaffirms or threatens the strong uptrend that’s been in place since 2003 at the same time the S&P 500 appears…
The Lonely Trader recently posted a very detailed post entitled “What I would look for in a Trading Coach“. I highly recommend the post and offer a few points in summary from the article: “[Avoid] coach or mentor with too many endorsements on internet….” “[Avoid] someone who appears to take a cookbook approach, or has…
Fewer patterns are more pure than the recent price rejection at upper resistance via the falling 20 period moving average in the US Dollar Index. It is an example of how to use two time frames for confirmation. First, let’s look at the structure of the daily chart with a few possible thoughts: First, we…
Apple (AAPL) recently completed an ideal momentum divergence which has resolved to the downside. Imagine momentum divergences as you would a coiled spring that is building up pressure. To release the pressure, the spring must resolve to a neutral position, but it doesn’t always have to do so all at once. Apple recently showed us…
Ray Barros at the Blog for Trading Success recently treated readers to one of the best examples I have ever seen of a freely offered trading business plan at the conclusion of his post entitled “Routine and Habits: The Trading Plan“. He provides a brief commentary and sample outline for readers to consider when completing…
Google has been a leading stock in 2007, and traders expect it to continue to outperform. A classic pattern in technical analysis is forming which we can monitor for resolution, or potentially trade for profit. Google is forming a triangle consolidation, out of which price can be expected to trend for a sustained period following…
As mentioned previously, early recognition of a trend day can lead to significant intraday profits, especially if you use leverage or margin. Today is showing signs so far of some of the conditions that precede trend days. First, we had the expected release of a major economic report which has been known to shock the…
Bonddad at the Bonddad Blog recently posted brief analysis entitled “Will the Correct SPY Please Stand Up?” that offers multiple perspectives on the current technical chart/perspective of the S&P 500 Exchange Traded Fund, which also highlights why technical analysis is more of an “art” than a science. The current analysis of market conditions is indeed…
Today’s action was a classic example of the “Trend Day” concept, where price swings carry the index value lower, and up-swings become key opportunities to ‘get short’ or re-establish a core position. DIA (Dow Jones ETF) 5-minute chart: We had a large momentum impulse to the downside to start the day, and the failure of…
While nothing is certain in the markets, if we use basic principles of technical analysis, it would appear that oil prices are expected to continue their uptrend higher, and there is no resistance in sight, but there are clear support levels beneath. First and foremost, trends – once established – have greater odds of continuation…