Chart of the Day: Multiple Inside Days in FRX
Two inside days can set up a good breakout trade.
Chart of the Day: AAPL
Volatility contraction sets the stage for a selloff.
Chart of the Day: Long-term S&P 500 Bias
Today's chart of the day will be a little different. Take a look at this table which shows 2 week, 1, 3, 6, and 12 month returns for every trading…
Chart of the Day: Breakout in the S&P 500
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…
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,…
Two Modes of Market Behavior (1/2)
[dc]W[/dc]hen trying to master any complex subject, it can be helpful to reduce things, as much as possible, to basic elements. Price movements in markets are very complex; so many…
Volatility Compression
[dc]I[/dc] will write more about this in the future, but I want to introduce you to an important concept called volatility compression. From a theoretical perspective, markets tend to operate…