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Putting momentum to work for you

Financial markets are confusing–there’s no doubt about that. Sudden reversals, spikes, dull dead periods exploding into panic, fakeouts and fakeouts of fakeouts… the list goes on, but traders and investors quickly discover that reading the market is... read more

Staying in step: finding rhythm of the market

Rhythm is a fundamental aspect of the human experience: our bodies pulse with the rhythm of blood and breath. We experience the rhythms of day and night, and the longer cycles of the seasons. Rhythm is fundamental to music, whether it’s the relentless pounding bass of... read more

Video blog: market conditions and trend structure

I wanted to share a video that I do weekly for my research subscribers. (More information and a free trial is available here.) This is something a bit different from what I usually do here on this blog; I tend to keep the blog a bit more “classroom”... read more

Down in the trenches with trading tactics

In my last blog post, I made an argument that the details of patterns do not matter–get the idea and the big picture right, and everything else is much easier. While I firmly believe that this is true, it does leave some important questions unanswered: mostly,... read more

What’s going on? Thinking conceptually about patterns.

When I started trading, like many people, I was drawn to traditional technical analysis. I spent hours and hours studying different variations of patterns, often after creating the charts myself on graph paper. I measured ratios, looked at different kinds of averages,... read more

Four things you need to know about quiet markets

How many emails do you get promising to show you how to find “hot stocks now”? How many screeners out there want to show you the movers and shakers in the market? How much attention does the media focus on big movers, and how much does social media explode... read more

Lessons from a reader: trade review of CREE

I received a good question from a long-time reader on a trade he executed in CREE. Here’s Jim’s (edited) question: I’ve been trying to swing trade for a few years now… Regrettably, the broad market indices usually leave me in the dust each month. An... read more

Trading Edge vs trading edge

I did an interview a week or so ago with Abraham Thomas, one of the co-founders of Quandl. I love doing interviews because a thoughtful interviewer makes me ask questions and think about things in a new way. (Stay tuned for some more insights from that interview, and... read more

Four steps to mastering your fear of trading

Every trader faces fear, sooner or later. In a perfect world, we’d be fearful at exactly the right times and use that fear to manage our risk, but we all know it doesn’t work like this–markets naturally seem to provoke the “wrong”... read more

AUDUSD: Short-term inflections or trend change?

One of the key challenges for discretionary traders is balancing short-term and longer-term information. Err too far on either side, and bad things will happen: Focus too much on short-term, and we are overly responsive to every jiggle of the market, constantly... read more

Exits: know when to hold ’em, know when to fold ’em

We all focus a lot of attention, perhaps too much attention, on where to buy and sell a market, on where to enter trades. Today, let’s spend some time looking at the other side: where are you getting out? Some categories are useful here, and they are not... read more

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