Using Multiple Time Frames to Get the Big Picture

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Two of the Greatest Momentum Oscillators

Fear and greed are the greatest tools a trader can use.

If I spot fear raging out of control in a stock, I want to know exactly when that fear is likely to dissipate. Or, if I find a trade where buyers are tripping over one another with greed, I want to be aware of it.  That’s because if I can spot where either is out of control, the easier it is for me to make money. 

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The Best Time to Enter a Trade

“Opportunity is missed by most people because it is dressed in overalls and looks like work.”

Those very words of Thomas Edison still hold true today.

But rest assured, that’s a mistake – a potentially costly one that’s cost investors millions, especially when they overlook game-changing opportunities.

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Will the U.S. Dollar Ever Rebound?

One of the most difficult questions to answer is when the U.S. dollar could rebound. 

On the heels of President Trump’s strong dollar comments, lower inflation, failure to repeal Obama Care, and a very real possibility of no more rate hikes in 2017, no one had much of an answer for quite some time.

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Three of the Oddest Candlesticks to Trade

When new traders first hear about candlesticks like dark cloud cover, evening stars, shooting stars, white soldiers, three black crows or even the abandoned baby bottom, the ADD kicks in and they’re completely lost.

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The Importance of Confirmation to Identify Setups

When it comes to technical analysis, laziness leads to loss.

It doesn’t matter how oversold your relative strength (RSI) indicator may be, for example, if you fail to confirm it, you could set yourself up for a loss.

There’s an easy way to fix it, though.  For one, don’t rely on just the RSI. Look for confirmation.

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What the VIX tells us Below 10

Wall Street’s “fear gauge” plummeted to a 24-year low of 9.31 in late July 2017, stoking concerns that traders had become far too complacent.

While many don't pay attention to such a gauge, as markets rally, it’s well worth paying attention to. You see each time the VIX has closed below 10, we’ve seen big spikes in volatility shortly after. In fact, the last time the VIX closed under 10 in late June 2017, the VIX exploded from a low of 9.75 to 13 in days, resulting in a pullback in major indices.

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Technical Analysis 101: Triple Tops and Bottoms

Fear and greed dictate just about everything.

And if we can spot where either has become overdone, it can present opportunities.

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The Most Important Concept in Technical Analysis

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.

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Powerful Candlestick Patterns: Morning Stars and Evening Stars

A few weekends ago, I had a family get-together.

They’re always fun.  I get to see relatives I haven’t seen for years. 

Unfortunately, they’re also always full of people you wish you could ignore. My Uncle David is one of those people. The guy who thinks he knows everything about everything, especially about trading the markets.

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The Magic of Moving Average Crossovers

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.

All we have to do is wait for a crossover to do so.

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What Does Technical Analysis Tell us about the US Dollar?

One look at the US Dollar in July 2017, and you just felt sick.

Unless, of course, you were short the currency or held gold at the time. 

But for those with hopes for a near-term recovery in July 2017, it was best to just find somewhere else to park an investment. 

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Bollinger Bands and the Rubber Band Effect

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.

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Stop/Loss Management: Where Should I Place My Stops?

Money management is an essential part of any trade.

If a trade begins to go against you, or even if a trade did exactly as you had hoped, knowing when to get out, is important. Look at the U.S. dollar for example. Let’s say you bought the currency around 97.30 in November 2016 before it began to run to a high of 103.81 by late 2017.

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Japanese Candlestick Patterns: What Can a Doji Tell You?

To the average trader, candlestick patterns are just a bunch of crosses and odd shapes with weird names, like the abandoned baby, three white soldiers, and piercing lines.

But as odd as they may sound, even the craziest one can help give you a significant trading edge.


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Trading Support and Resistance with Currencies

When it comes to trading, none of us have a crystal ball.

We can’t tell you with obscene accuracy what’s coming next. 

But what we can help you do is attempt to gauge the possible intentions of buyers and sellers.  One of the easiest ways to do that is by simply identifying patterns of historical support and resistance, which lets us know where buyers and sellers are reaching a point of exhaustion.

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Technical Analysis 101: Flag and Pennant Patterns

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.

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