Current Technical Situation: S&P 500
A failure test that justifies flipping a long position to a short position.
Small Stops, Big Risks?
[dc]S[/dc]ome of the most persistent myths about trading revolve around the idea of low-risk trades. You will often hear traders say that they took a trade because the risk was…
Two Statistical Studies
[dc]I[/dc] want to share two statistical "studies" with you. Both of these were done this weekend, using the cash S&P index from 1/2/1987 - 10/14/2011. Both show a strong and…
Careful With Correlations
A casual understanding of mathematical concepts can often lead to incorrect conclusions. This post shows that the direction of markets on charts does not necessarily reveal anything about the correlation between those two markets.
What Do You Really Want From the Market?
A look at the true reasons and motivations behind our trading.
Know Your Risk
[dc]"F[/dc]irst, know your risk." Every trader has heard this, and for good reason: It truly is one of the most important elements of successful trading. Amateur traders get into a…
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…
Anatomy of a Trade: Nested Pullback in ANR
[dc]I[/dc] want to share with today an example of an actual trade I made in September. Two points before we begin: this is, perhaps, a slightly complex example. If you…
The Art and Science: A Deeper Look (2/2)
This is the second post in a two-part series, taking a deeper look at the contents of my new book, The Art and Science of Technical Analysis, to be published…
The Art and Science: A Deeper Look (1/2)
PART I: THE FOUNDATION OF TECHNICAL TRADING CHAPTER 1: THE TRADER’S EDGE Most losing traders lose because they do not truly understand the nature of the challenge before them.…
So You Want To Be a Trader? (reading list 3/3)
This is the third post in a series. Please read part 1 and part 2 first. So if you've gotten this far you see the title of this series maybe…
Proposal for a Training Course
Adam asks what the community would like to see in an Introduction to Technical Analysis training course.
Domestic Stock Index Analysis (10/6/11)
A look at the technical position of the S&P Index 10/6/11. Illustrates use of simple technical patterns and relationships to derive an edge.
Market Pattern: The Failure Test
There is a theory of market behavior that essentially says that markets exist to create trading activity and volume; whether this is precisely true, or whether it completely explains all…
So You Want to be a Trader? (Reading list 2/3)
This post is a continuation from the first post in this series, and the last post can be found here. In that first post, I suggested a set of books…
My Approach to Markets and Trading
A summary of my core beliefs about markets.