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.Read More
Investors piled into gold in June 2019, sending the precious metal to a six-year high.
All thanks to tensions with China, a more dovish Federal Reserve, and the latest “hard-hitting” sanctions on Iran after a U.S. drone was shot down. Remember, gold is a safe haven and a good store of value during times of a weaker dollar, slowing economic activity, and geo-tensions.Read More
In early June 2019, markets pulled back sharply.
And it wasn’t just because of the trade war. This time, falling knives in big tech forced the NASDAQ into correction territory. All thanks to antitrust regulator’s plans that could lead to broader oversight on Facebook, Google, and Amazon.Read More
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.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
One of the best ways to make money on the Street is by spotting excessive bouts of fear and greed.
In fact, that’s how some of the most famous investors made their money.
In short, they were buying when others were scared, and selling when others got too greedy. They were exploiting the very psychology of herd mentality.
And we can do much of the same.Read More
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.Read More
There are hundreds of technical patterns to be aware of.
In fact, if you pick up Steven B. Achelis’ Technical Analysis from A to Z, you can see most of them in 400 pages. But after 20 years of trading, I can personally tell you the most powerful momentum indicators a trader can use include Bollinger Bands (2,20) moving average convergence divergence (MACD), Relative Strength (RSI), an Williams’ %R (W%R).Read More
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.Read More
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.Read More
Oftentimes, technical analysis is written off as worthless.
However, as it has been proven time and time again, it should never be ignored because it gives us a very clear, defined picture of fear and greed. Or, the very psychology that drives stocks.
In fact, by simply using a unique combination of Bollinger Bands, MACD, Relative Strength, and Williams’ %R, we can spot pivots up to 80% of the time. However, it always pays to confirm even those indicators. Here are three other technical points to be well aware of.Read More
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.Read More
Some analysts may write off the Dogs of the Dow theory as antiquated.
In fact, back in 2007, Barron’s noted the strategy no longer works. However, history teaches us that it works very well.Read More
Boeing was the top stock to avoid in early March 2019.
The stock had just fallen more than 35 points in two days on news that an Ethiopian Airlines flight crashed, sadly leaving no survivors. That came just comes after another deadly crash involving the same model in Indonesia, which also left no survivors after five months ago.Read More
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.
Over the last 20 years, I’ve combined hundreds of different technical strategies.Read More
Markets are a fickle beast.
Even with the U.S. and China nearing a trade deal, markets began to pull back in March 2019.
While many shifted blame to the President for the move lower, we had to consider that markets were technically stretched. We were overdue for a pullback.Read More