Testing a trend-following approach in futures
In this post, we'll take a look at a common trend-following trading idea: channel breakouts (also called Donchian channels). I want to share with you a way of looking at…
Five charts to start the week
I thought it might be useful to star the week with a look at trends and possible inflections in a number of major markets. Here's a quick look at stocks,…
The trend is your friend, except at the end…
Let's talk about endings today. If we can better understand the patterns that often occur when trends end, we are better equipped to manage risk, place stops, and, in general,…
Slip and slide (along the bands)
Effective trading patterns are usually simple. The more complicated an idea is, the more likely it is the result of trying to fit very random data (i.e., the market) into…
Video blog: using the daily market stats
An in-depth look at the intraday market stats page on this blog, with some ideas for using these stats to enter and manage trades. This is not just a tool…
Video blog: time to buy crude oil?
http://youtu.be/wCUW_KIwxEk A look at current conditions in crude oil, and some general comments on how to fade a trend.
Reading sector relative strength
[dc]R[/dc]elative strength is an important trading concept, and there are a lot of ways to define, monitor, and trade these relationships. Looking at the sector relative strength within the US…