How to Properly Catch a Falling Knife

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Technical Analysis 101: Which Chart is Best for You?

Since the 1700s, analysts have been using charts to identify patterns.

In fact, at one time, Tokyo rice traders used them to look at prices over a fixed time frame to find patterns, especially candlestick patterns – which would allow them to gauge the probable actions of rice buyers and sellers.

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One of the World’s Most Unstable Currencies

Global investors are fleeing the Mexican peso en masse again.

The worst performing currency of 2017 (down 20% against US dollar) is now down another 5% in the first 11 days of the New Year.  And there are no signs of relief, in part because Donald Trump just told automakers that higher taxes would be levied on vehicles made in Mexico.

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Five Technical Analysis Myths Debunked

Technical analysis has always been rejected as a study of lines and charts without any real concrete or profitable results. And clearly, an exhaustive debate on its usefulness would be long-winded, especially against those that only subscribe to fundamental analysis, as Warren Buffett does.

But as any technician will tell you, it does work well with understanding.

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Technical Analysis: Gold May Have Just Bottomed

2016 began well for gold prices.

Between January and June, gold bugs were quite pleased, as the metal soared from $1,070 to $1,364.  Then came the second half of the year, and it all went south.

In fact, since June, gold hasn’t been the greatest trade to hold at all.

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Two Stock Patterns Every Trader Should Know

When it comes to trading, none of us have a crystal ball.

We can’t tell you with obscene accuracy what’s coming next. 

But what we can help you do is attempt to gauge the possible intentions of buyers and sellers.  One of the best ways to do just that is with charting… where you’re looking at a consolidated view of the forces of supply and demand.

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Technical Analysis: Bitcoin Rally Still Has Legs

It’s one of the best-performing assets of 2016.

Since the start of the year, Bitcoin is up nearly 90%, having just recently hit a two-year high of $918.95.  Near-term projections put the currency in range of $1,000 to $1,200.  New Year 2017 projections put it as high as $1,216, as demand explodes for alternative investments.

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Technical Analysis: Copper Popped as Expected, But…

In late November 2016, we noted copper was overdue for a higher move, thanks in part to a pick up in global manufacturing and infrastructure spending in the U.S.

We were hopeful for a rebound from $2.43 support, retesting a prior high of $2.733.

And that’s exactly what happened. 

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A Technical Picture of Human Emotion

Traders are often told to ignore the art of technical analysis.

“Technical analysis is fundamentally flawed,” says Forbes.

“The poor reputation of technical analysis is well deserved, noted another analyst.

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Technical Education: The Rubber Band Theory

Pull out a rubber band.  Now pull it with all your might in one direction. 

What happens at the point where you can’t stretch it any more?  It snaps back, right?

That very same thing happens to most stocks, indexes and ETFs, too.

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Coffee Prices Oversold, Ready to Bounce

Americans still love their coffee.

But prices have soured as traders predict a surplus, instead of a deficit. 

That, coupled with a stronger US dollar has sent coffee prices from a November 2016 high of $1.76 to $1.42.  Despite rising consumption, favorable Brazilian weather conditions are pointing to a stronger than expected harvest for the New Year.

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Charting 101: The Omen You Cannot Ignore

The U.S. markets are in a super bubble.

But if the latest technical setup is right, the bubble could soon burst.

Known as the Hindenburg Omen, it typically warns of the possibility of stock market crashes.  The last time it appeared, investors foolishly ignored it in December 2015.

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EUR-USD Technical Analysis: Where can it go from Here?

Italy put on quite the show the other night.

Shortly after the country voted “no” on reforms that could have stripped the Senate of its powers, modernizing the legal framework, it was chaos.

Prime Minister Matteo Renzi resigned.

The euro would hit 1.0507 -- its lowest point against the US dollar since March 2015.

 

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