Using Multiple Time Frames to Get the Big Picture

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Excessive Greed: Know when to Exit the Bitcoin

“Be fearful when others are greedy and greedy when others are fearful.”

That’s one of the trading philosophies of billionaire Warren Buffett.

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Technical Analysis 101: The Parabolic SAR

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.

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Technical Analysis: The Next Stop for Bitcoin

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.

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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. 

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Technical Analysis: The Trade That May Perk You up Again

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. 

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Technical Analysis: Bollinger Bands and Williams %R

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.

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Technical Analysis: The Hottest Metal Story of 2017

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. 

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Technical Analysis: A Forgotten, But Useful Indicator

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.

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Technical Analysis: Silver Could Be about to Run

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.

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Technical Analysis: The Importance of Money Flow

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.

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Technical Analysis: Copper Close to Breakout

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.

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Technical Analysis: Gold Could Retest $1,268

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.

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Shocker: U.S. Dollar Second Worst Currency of 2017

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.

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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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