Dogs of the Dow 2019: Three Stocks to Keep an Eye On

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How to Use MACD Effectively

When it comes to pattern recognition on a chart, we could spend hours looking at daily, weekly, monthly, one-year and five-year chart. 

We can examine every wiggle, every bounce, and every dip for hours. 

In fact, look at the U.S. dollar. 

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How to Trade Collapsing Currencies

Since 2017 began, the Mexican Peso has been an absolute mess.

In fact, since January, it fell 16% from 22. 

However, as you can see in this chart of the $USD-MXN, it sat at an extreme low at double-bottom support dating back to November 2016. Will support hold, or will the Peso continue to fall?

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Education 101: The Most Common Trading Question

Risk tolerance comes up in a lot of trading conversations.

And the usual response I give is – well…  how much can you afford to lose?  What’s your personal risk tolerance?  It may seem like a ridiculous question, but it’s also one of the most ignored.  In fact, some traders are so focused on hitting that jackpot trade, they never stop to ask themselves how much they can really afford to lose.

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Technical Analysis 101: Why Chart Patterns Matter

Whether you trade currencies, commodities, or even just ordinary stocks, understanding technical analysis is crucial to your success.  Unfortunately, many traders continue to fall into the same trap of ignoring the basics like resistance, channels and false breakouts.

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Technical Analysis: The One Certainty of the Markets

If you want strong returns when markets are on another wild ride, always keep an eye on the VIX, or the Volatility Index, which measures implied volatility of S&P 500 options.  Always… It’ll tell you exactly when to go long.

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Update: The Technical Argument for Gold

In early April 2017, we made a technical argument for further downside in the U.S. dollar.  In fact, after drawing our trend lines, a falling wedge pattern became apparent, exposing overhead resistance at 100.95.  We argued that if the currency failed at that point, it was likely to reverse lower and stay within the pattern.

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How to Really Let your Winners Run

We’ve all seen fortunes made.

Unfortunately, we’ve also seen fortunes lost in a matter of seconds.

To this day, one of the biggest reasons for sizable losses is failure to protect profits and cut losses timely with tools, such as the trailing stop loss.  But we have to realize that without any kind of exit strategy in place, emotions could come into play. 

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Technical Analysis: How to Spot Pivots in Currencies

When it comes to trading currencies, technical analysis is just as important as the global chaos impacting them.  While the importance of such analysis varies from trader to trader, we must be aware that currency markets are greatly influenced by it.

That’s because this analysis – especially with currencies – helps to remove that urge to trade on gut reactions and what may be happening in the world.  It removes the noise.

Let’s start with the USD/JPY.  

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Technical Analysis: How to Tell When the Dollar Could Pivot

We wanted to bring your attention back to the U.S. dollar to highlight why technical analysis is essential.   Days after the currency found double top resistance at 102.10, it began to descend rather quickly as the Trump trade began to unwind.

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One of the Most Powerful Momentum Indicators

Harness the power of herd mentality, and you set yourself apart.

Easier said than done, though.  Right? 

We already know that following the herd blindly can have major consequences and potential losses, especially given that it has become very easy for one trader to influence other traders. 

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Technical Analysis: The Fibonacci Retracement

It’s all about getting ahead of the pack.

The more well prepared you are, the more likely it will happen.  While we’ve spoken in-depth about many momentum indicators up until this point to do just that, there’s another one that deserves just as much attention –Fibonacci Retracement Levels.

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The Technical Argument for Gold

Let's put Gold under a technical microscope. In March 2017, gold ran on the perfect storm.

Leading up to the hike in interest rates, the price of gold pulled back from a high of $1,264.90 to $1,200 on fears the yellow metal would quickly fall out of favor. Instead, shortly after that pullback, it caught and held double bottom support at $1,200 where buyers began to accumulate the metal on global uncertainty with elections.

 

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Trading Psychology 101: The Most Dangerous Trade

“Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one,” noted Charles Mackay in Extraordinary Popular Delusions and the Madness of Crowds.

Granted, that was written in 1841.

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Technical Analysis: U.S. Dollar in Free Fall, But…

The U.S. dollar looks like it caught the flu. And apparently, it would appear that bullish bets on a higher U.S. dollar, sparked by Trump’s win and his pledge on tax cuts, deregulation and federal spending programs has managed to unwind.

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Technical Analysis 101: Three Great Technical Tools

When it comes to technical analysis, it’s very easy to become overwhelmed with the shear number of indicators.  Everything from Bollinger Bands and MACD, to moving averages and accumulation/distribution lines can make even the most seasoned pros a bit cross-eyed and batty after awhile.

 

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Technical Analysis: The Hottest Commodity of 2017?

One of the rarest precious metals is having its best showing in years.

Not even gold (up 10% from a low of $1,146.50), silver (up 15% from $15.94) or even copper (up 6% from a low of $2.448) can touch it. 

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