Reader question: why do patterns work?
A really interesting discussion developed in the comments to this post on pullbacks. Since you're capable of clicking the link and reading the comments, I won't copy the whole discussion…
A really interesting discussion developed in the comments to this post on pullbacks. Since you're capable of clicking the link and reading the comments, I won't copy the whole discussion…
I've written quite a bit lately on things that don't work, and tried to point out some errors in common practical technical analysis. Yes, I'll do more of that in…
Here are a few trading ideas. Some may be immediately executable; some may need to go on a watchlist. In most cases, these are consolidation plays and could be entered…
[dc]O[/dc]ur trading ideas, "setups", if you will, must change with market conditions. Certain types of trades are more relevant at certain times. For instance, if the market is dramatically overextended,…
https://www.youtube.com/watch?v=ElbjW1k4saw&feature=youtu.be This video takes a look at a possible setup developing in the US Stock market: what could potentially be the first pullback following at attempted trend change. (You could…
[dc]I[/dc] want to share a brief look at longer-term market structure in the Canadian dollar today. We have a situation in which a few timeframes appear to be in conflict…
[dc]T[/dc]oday I want to take a look at the recent move in India's stock market. I will discuss how we traded it (and signaled the move far in advance) in…
[dc]A[/dc] few weeks ago, I discussed a possible impending breakout in the British pound in this post. This is a good time to take another look at the pattern, how…
By way of history, we have been bearish on Gold for quite some time in the research I write daily for Waverly Advisors, and we hold a short that was…
Yesterday's weak closes in major stock indexes do threaten trend integrity, at least on the intermediate term: though fairly small on a nominal basis, these moves were large on a…
The daily chart of the DJ Europe Stock Index shows a two-legged pullback that could be read as a complex consolidation. This is typically a strongly bullish pattern, and we…
[dc]I[/dc] want to share the thinking and reasons supporting a technically-motivated short position in Treasury Futures. I think it is possible to simplify the trading of patterns too much, and…
Sometimes, important technical patterns are easy to miss. A small bar near the extreme of a recent thrust (near the extreme means near the low of a downthrust or the…
One of the tools I use to evaluate market action is the standard deviation spike, which expresses each day's return a standard deviation of the previous 20 trading days. (This…
The small consolidation (B) above the top of the parallel trend channel should provide another spot to add to or to initiate long positions on further strength. One way to…
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…