Though I have written before about a potential longer-term timeframe short setup in precious metals, Gold and Silver both show overtly bullish patterns. Longs are justified on upside breakouts in…
[dc]I[/dc] want to share a few thoughts today on technical trading in general. The points in bold come from the end of the first part of my recent book, The…
Long-time market leader consistently outperforming broad market, sector and peers. Check. Positive earnings surprise. Check. Several days of tight consolidation at highs. Check. This is an excellent technical setup to…
This is a chart of NYSE Total Volume with 1 week (red) and 1 month (blue) moving averages applied. There is a seasonal pattern to volume, volatility and trading activity,…
I want to share a quick thought with you today--a little trick in thinking that made a big difference in my trading a few years ago. One of the problems…
One of the reasons we watch and study market leaders is that they can sometimes provide clues to market direction. Yes, they often get harder than the broad market at…
When markets are in consolidation (i.e., moving sideways) it is very difficult to find strong edges. Markets tend to be more random, and no consistent profits are possible in a…
This daily chart of ABX shows a stock that may have found a bottom: after several potential bottoming formations, the rally has carried the stock the upper Keltner channel, suggesting…
The most important levels in markets are those that are clearly visible to all market participants. The July pivot high in Soybeans is a good example of an important level…
[dc]O[/dc]ne of the challenges developing traders face is learning to manage positions effectively. Think about it for a minute—how many books do you know that show patterns and setups for…
The bear flag is a pattern that plays out in all markets, though it tends to resolve less clearly (i.e., with more fakeouts and false breakouts) in currencies. Why? I'm…
Volatility contraction is an important element of market action. Essentially, when a market has been quiet for a period of time, there is a higher chance of breakout trades working,…
Reader Greg asks this question: [dc]R[/dc]egarding your Chart of the day: Bullish Pattern in Aud/Jpy, which as you predicted broke out to the upside. My question is simple...why did you…
Two things to note on this chart of Corn futures: 1) The clean failure test above the summer's highs, followed by a sharp selloff to the bottom of the range.…
[dc]R[/dc]eader Jayram asks, "Can you tell what is the significance of the blue & red bar coloring in your charts on the blog?" Sure, Jayram. I use various color rules…
Markets alternate between periods of range expansion (usually during trends) and volatility contraction. Breakouts from periods of volatility contraction tend to be strong, and highly directional. This chart pattern in…