Some hard questions.
[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…
Chart of the Day: HAIN
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…
Chart of the Day: Volume
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,…
A little mental trick…
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…
Chart of the Day: Consolidation in AAPL
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…
Chart of the Day: Parallel Trendline in Gold
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…
Chart of the Day: Context in ABX
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…
Chart of the Day: Potential Failure Test in Beans
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…
Working on Exit Skills
[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…
Chart of the Day: Bear Flag in EURUSD
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…
Chart of the Day: Volatility Contraction in Soybeans
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 question: Range or Flag in the AUDJPY?
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…
Chart of the Day: Consolidation Near Bottom of Range in Corn Futures
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.…
Reader question: Color Rules
[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…
Chart of the Day: Volatility Contraction in Corn Futures
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…
Chart of the Day: Bullish pattern in the AUDJPY
This is potentially a very bullish pattern on the AUDJPY, targeting a move into the high 87's over the next several weeks. Trades should be entered on strength above the…