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…
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.…
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…
Video Blog: the Failure Test
This video blog is a follow up from this post, and digs into some of the details behind the Failure Test trade in a little more depth.
Trading Pattern: the Failure Test
[dc]I[/dc] want to do a small series of posts looking at some of the most important trading patterns I've used over the years. Rather than go in-depth with multiple examples,…
Chart of the Day: The need for entry triggers
This is why we have entry triggers. I posted this chart pointing out a bear flag in EL on the day marked with an arrow, suggesting that a good entry…
Chart of the Day: Russell 2000 Index
I tend to believe it's usually counterproductive to do too much in-depth technical analysis on different market cap or sector indexes. Everything is so tightly correlated anyway, so differences often…
Tracking the Stock Market Intraday
[dc]O[/dc]ne of the main challenges for stock traders is understanding the ebb and flow of the broad market on the shortest timeframes. There is so much noise in price movement…
Chart of the Day: Bear Flag in EL
The daily chart of Estee Lauder Companies Inc (NYSE: EL) shows a clear bear flag, which sets up a potential trade on any breakdown. Note that this is only a…
Chart of the Day: EURUSD set for breakdown?
Longer-term patterns in the EURUSD are strongly supportive of a bearish trade, perhaps targeting parity or lower. This is an aggressive entry, but it is often possible to enter after…
Daily Chart: Weekly Market Structure in S&P 500
Note the weekly bear flag on the S&P 500 index. You may call it by a number of different names (wedge, pullback, anti, flag, etc.), but the concept is the…
Chart of the Day: Breakout Setup in DFS
Watch DFS in a breakout above resistance (roughly 34.45 – 34.75.) Resistance levels are usually not clear lines, but rather rough "zones" where selling pressure has previously been able to…
First Principles in Technical Analysis (5/?)
Fourth principle: Price Action Around Support / Resistance continued from this post... and if you are just starting, go here and read the posts in order (from the bottom up.)…