How to Identify Flag and Pennant Setups

How to Use Full Stochastics in Your Trading

Fear can destroy a stock in seconds.

But it can also lead to quite a bit of opportunity.

Look at Coca-Cola (KO), for example in late February 2019. 

How to Use the Parabolic Stop and Reverse (SAR) Indicator in Your Trading

The Parabolic Stop and Reverse (SAR), commonly known as Parabolic SAR is a trend following indicator that highlights current price direction.

It also provides entry and exit signals as well with dotted lines.

Technical Education 101: Channel Trading

When it comes to technical analysis, there are thousands of patterns to watch for, decipher and understand along the way. 

They’re not so tough to understand. 

In fact, one of the easiest ones to understand is the channel, defined as two parallel trend lines within a tight trading range.  The upper line connects the price peaks in the channel while the lower line connects the price lows. 

Technical Analysis: RSI Can Lead to 80% Success

Traders are often told to buy excessive fear or greed.

Unfortunately, many aren’t aware of when to actually pull the trigger, or realize when fear or greed have gotten way out of control.

But there’s a simple way to know exactly when to buy and when to sell.

Trading the J-Hook Continuation Pattern

Technical analysts attempt to predict direction by studying past price action and charts. And understandably, there are critics. In fact, some see it a pseudo-nonsense. 

Forbes for example says it’s fundamentally flawed.

The Easiest Way to Spot Options Opportunities

We’re often told to “Never buy a stock hitting a 52-week low.”

“Stocks in downtrends tend to stay in downtrends.”

“Any stock hitting a 52-week low will always be weak.”

Or, “nothing is more destructive to amateur investors than thinking that a stock trading near a 52-week low is a good buy.”

However, none of that is true. 

The Exact Time to Jump out of Any Trade

It’s not about having the perfect strategy.

It’s about the rule you abide by with each trade. 

One of the biggest issues facing all walks of traders is a severe lack of discipline and structure in stock buying habits. Many fail to use stop losses, or even protect gains with a simple trailing stop loss strategy. Others risk far too much.

Williams’ %R: One of the Most Essential Technical Indicators

One of the best ways to become a great trader is to try new things.

Unfortunately, there’s no such thing as a perfect strategy. But if you’re willing to trade outside of the box, you can become a better trader.

Three of the Most Powerful Technical Pivot Indicators

When bungee jumpers plummet off a bridge, what happens?

They pop back up, right?

The very same thing happens with stocks when they become too overbought or oversold. And if we can position ourselves for the exact moment the “snap back” happens, we can make money. And it’s actually quite easy to spot.

Gap Trading Fundamentals

All of a sudden, there’s a gap in the chart of your favorite stock.

Surprise news, earnings, something unexpected caused a bout of extreme optimism or pessimism that resulted in the move.

Look at Palo Alto Networks (PANW), for example.  In early June 2017, shares closed at $118.59.  However, shortly after the close, news of a massive cyber attack began hitting headlines.  Orders come flooding in overnight.  The next day, the stock opens at $140.

The Two-Step Process to Uncovering Value after a Pullback

Why would I want to touch a stock that just plummeted?”

My answer, “Why not?”

What many traders don’t understand is that many pullbacks create opportunities, especially when it happens to a well-known stock. 

How to Use the Chande Trend Meter (CTM) with 80% Success

Unbelievably, technical analysis is still written off as useless.

In fact, some denounce it as a laughable study of charts, patterns, and squiggly lines without any concrete or profitable results. Others argue it’s only good for short-term trading.

However, none of that is true.

Using Multiple Time Frames to Get the Big Picture

One of the best ways to lose money on any trade is to ignore multiple time frames.

For example, if I just rely on a six-month time frame, I miss the bigger picture trend that a one-year, two-year, and even a five-year time frame can offer. Looking at a six-month chart of the iShares NASDAQ Biotech ETF (IBB), it’s tough to gauge anything. It’s full of “noise” and not a lot of direction.

How to Identify Flag and Pennant Setups

Once you begin to understand technical analysis, you’re literally looking at a consolidated view of the very forces of supply and demand – the two key forces that drive markets. 

We’ve already discussed some of the most powerful and most used patterns, like Bollinger Bands, Fibonacci retracements, relative strength, head and shoulder patterns, breakouts, and even how to use candlesticks.

How the Relative Strength Indicator Can Give You an Edge

Traders are often told to buy excessive fear or greed.

Unfortunately, many of those traders aren’t aware of when to pull the trigger, or realize when fear or greed have gotten way out of control. Then, when they finally do decide to make the trade, the stock has already begun to pivot.

And more often than not, they miss the profit opportunity.

Always Look for Agreement with These Technical Indicators

I love when traders tell me technical analysis doesn’t work. 

While they’re entitled to be wrong, the fact remains that technical analysis does work, sometimes by up to 80% of the time. Granted, there is no Holy Grail, but if we use the right indicators, we increase our odds of success. Especially if we apply those indicators to well known stocks that may only be down temporarily.