There are hundreds – if not thousands -- of ways to study a chart.
Look through Steve B. Achelis’ Technical Analysis from A to Z if you have a chance. There are nearly 330 pages worth of examples, including the Parabolic SAR, or the Parabolic Stop and Reverse, which can help indicate momentum. It can also be used to indicate a higher probability of pivoting and switching direction.Read More
It’s hard to argue the Bitcoin has become one of the most volatile – but rewarding currencies of the last year. Up nearly 180% in a year, there are no clear signs the rally could stall.
Instead, should momentum continue, the crypto-currency could hit $1,216 before long.Read More
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.Read More
As it turns out, Americans still love their coffee.
In December 2016, a predicted surplus coupled with a stronger U.S. dollar, sent coffee prices screaming to a low of $1.42. But it was at that point that coffee hit an unsustainable low with incredibly oversold momentum metrics, including Relative Strength, MACD and Money Flow.Read More
Every day, thousands of traders under- and overreact to news, which can create incredibly oversold or overbought conditions in a matter of minutes.
However, once that news has been fully baked into a security, it can leave the stock still dangling in severely oversold or overbought territory. And it’s at that very moment, you want to pounce on the track for potential mean reversion, or a snap back to the average.Read More
It may not be one the most attractive, sexy trade ideas you’ve ever heard. But this is a metal breakout you may not want to ignore for much longer.Read More
When we typically think of technical analysis, we think of Bollinger Bands, moving average convergence divergence (MACD), relative strength (RSI), Williams’ %R, moving averages, and a host of other strong indicators.Read More
2016 began well for silver.
And then, well… it got worse.
In the first few months of last year, silver ran from near $14 to $21. But by June, the party was over. Silver would plummet from its sky-high valuation to $15.96.Read More
When it comes to trading, one of the best ways to tell what’s happening is by paying attention to the flow of money in and out of a stock. None of us want to buy a stock if money is flowing out, right? Of course not… It’s a great way to lose money. Instead, we want to buy if we’re seeing money flow in.Read More
If copper can hold current support around $2.50, the metal has a chance at pivoting higher and retesting prior highs, as we noted December 22, 2016.
And that’s exactly what happened.Read More
Well, that was easy.
In early January 2017, we argued that gold could have just bottomed out after finding strong support at $1,125. Now, just weeks later, the yellow metal is up to $1,215 with its sights set at $1,268 an ounce. All it needs to do is break above prior resistance at 1,233.10 and it could run.Read More
Apparently, the buck stops with Trump.
After a 13% run from May 2016 lows, the U.S. dollar is beginning to slip, having just broken below its 50-day moving average to the downside. At this pace, it could challenge a December 2016 low of $99.25 before long, infuriating those who are long the currency.Read More
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.Read More
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.Read More
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.Read More