One of the best ways to spot reversals is by spotting excessive fear.
To do so, we typically watch for agreement among Bollinger Bands (2,20), MACD, Relative Strength (RSI) and Williams’ %R in either overbought or oversold territory. However, we can also strengthen what those indicators say by adding in the Money Flow Index (MFI).Read More
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.Read More
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.Read More
The trend is the most important concept in technical analysis.
Its strength or weakness can dictate the overall direction of your favorite stock or index. Potential uptrends can be characterized by a series of higher highs. Potential downtrends can be characterized by lower lows.Read More
“Explosive growth with minimum risk!” Does that sound too good to be true?
Covered calls are typically portrayed as a conservative strategy. A way for investors to generate additional income based on stocks they have in their portfolio without taking on significant risks.Read More
If you pull a rubber band too far, too fast, what happens?
It snaps back, right? The same thing happens with stocks, indexes, and currencies. If they’re pulled too far in one direction, eventually they’ll snap back and revert to back to the mean. In fact, we see it happen all the time.Read More
By now, you’re well aware of how to find trends using simple moving averages, such as the 50- and 200-day moving averages. But you should also know how to potentially spot when a trend could stop dead in its tracks, or birth a new trend.Read More
Support and resistance are two of the most powerful technical indicators on the market.
Without watching either, you may just buy or sell at the wrong time.Read More
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.Read More
There are many traders that just won’t subscribe to technical analysis.
What technical analysis allows us to do is pinpoint where fear and greed are getting a bit out of hand. They allow us to measure market psychology, if you will.Read More
2018 was quite a year for IPOs.
There were 188 of them, raising up to $45.7 billion. By the way, that’s about 47% greater than 2017. More than likely, we would have seen more if it weren’t for the crazed volatility.Read More
Candlestick patterns may have some odd names.
Abandoned baby bottom, three black crows, dark cloud cover, for example. But these are some of the most powerful tools you can add to your strategy, including these three.Read More
2018 will go down in history as one of the most volatile on record.
But believe it or not, one of the most consistent ways to make money on the market is by trading excessive fear, as dictated by the Volatility Index.Read More
Stocks may be struggling in the latter part of 2018, but some real bargains are emerging.
And one of the best ways to profit from the most oversold stocks – especially those that pay consistent dividends is by investing in the Dogs of the Dow.Read More
It’s time to think about year-end strategies.
We already know:
In late November 2018, there was a considerable fear the Russell 2000 was setting up to fall even further. All thanks to the appearance of a “death cross.” However, more often than not, the death cross on the Russell 2000 can lead to a buying opportunity.
When it comes to technical analysis, moving averages are essential.Read More