I wanted to show a nice setup that developed just a few minutes ago in the Dow Jones ETF – DIA (5-minute chart): Notice the consolidation and ‘triangulation’ that formed as a result of the convergence of the 50 period MA above and the rising 20 period MA below. Aggressive traders could have positioned themselves…
What do these three stocks or indexes have in common? Each is showing a strong impulse sell move that is just confirming and is underway. First, let’s look at the Dow Jones Index: Observations: Price is in a confirmed daily downtrend. Price failed to muster enough strength to test the falling 50 period MA Price…
Dr. Steenbarger at TraderFeed posted an excellent resource and checklist to evaluate your specific (and unique) coping style as a market participant. This is the fifth post in a series relating to stress and coping in market trading. Dr. Brett asks, “How do you handle adversity in the market?” Some styles of coping are preferable…
Today’s intraday Dow Jones ETF action was less than stellar according to my strategies, as you’re about to see. Trade setups were in small supply, and endured a ‘rinse’ or ‘wash’ prior to achieving their target. Let’s look at the ‘ideal’ setups for the day on the 5-minute DIA chart: In the morning, there was…
Let’s look at what the Sector Flow Model is showing us, both on a short-time frame and longer out. First, let’s look at the Inter-market Chart from StockCharts.com: This chart may be a bit complex to understand, but let me just focus on one point: View only two lines: The Purple Line (bottom) which is…
Traders were relieved to see the recent upswing in the markets, leading to a weekly gain of 2.29% in the Dow Jones Index. I wanted to make a few quick points from a technical analysis standpoint regarding the current price position of the Dow and similar pattern of the S&P 500. Volume declined significantly during…
Dr. Bruce Hong posted 25 rules he uses when trading options. He states that he enjoys swing trading using options, which is absolutely a valid strategy used by many traders either to increase leverage, put on more positions, or trade with a smaller account. Dr. Hong presents short but well-explained strategies and rules for traders…
I wanted to create a new series on the Afraid to Trade.com blog, entitled “Idealized Trades of the Day.” What I am attempting to accomplish is to highlight the most ‘perfect’ trade setups – whether resulting in a profit or loss – based on my system and interpretation of intraday market action, in order to…
Dr. Steenbarger at TraderFeed offers a series of recent blog posts on the topics of Stress and Coping Mechanisms for traders and provides wonderful insights. The series is the following: Emotional Style vs. Content: What it Means for Trading Coping Strategies: An Overview Stress, Coping, and Trading: The Role of Appraisal In these articles, Dr….
It pays to be selective with your trade set-ups and entries. Sub-prime setups often lead to sub-optimal trading results. How can you be sure you’re taking the highest probability trades? While a discussion on high probability trading is well beyond the scope of any singular blog post, it helps to be able to articulate –…