Gold: a big drop in the big picture?
I thought it might be useful to step back and take a look at gold from a much longer-term perspective. First, the monthly chart (difference back-adjusted continuous futures): The first…
A new tool to measure trend strength: the Grimes Efficiency Ratio
Is a market trending or not? Even this simple question, which is at the heart of most of our thinking about markets, is not easy to answer. Definitions of trend…
Lessons from pattern failures in gold
I thought it might be useful to take a look at one of the most common trading patterns, the flag, and, more importantly, to see what happens when it doesn't…
How to trade pullbacks
I'm starting a short series of posts here on pattern recognition, focusing on simple patterns that I have found useful in actual trading. Some of my readers may have questions…
A look at the current market conditions: trades, risks, and opportunities
I thought this was a good time to take a look at current market conditions in US stocks. This is certainly a time when risk, emotions, and volatility are elevated,…