Breakout
[dc]I[/dc] wanted to follow up on my recent post about trading the rally in India. I ended that post with a question: We were planning to enter EPI (an earnings-weighted India ETF) on a breakout above a long daily consolidation. However, the market gapped open far above our
General Comments
[dc]A[/dc]s I promised last week, I'm going to start posting on some different topics and broadening the scope of this blog a little bit. (Depending on the reception, maybe a lot, but we will see.) Let's jump off today by starting to think
Breakout
[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 the research I write for Waverly Advisors, but, even more importantly, there are lessons for
General Comments
Reader Andrew asks (paraphrased question): Can I first of all say that I recently discovered this website and your book and I think they are fantastic! I would like to congratulate you on a great job with both of them. I have only read the first few pages of your
General Comments
Today, I want to write a bit about the value of keeping charts by hand. I've written on this topic before, but I think it is so important it's worth another reminder here. Though it is time consuming and is probably one of the oldest of
General Comments
[dc]O[/dc]ver the past few months, I've been doing a lot of thinking and researching, and have been exploring some exciting new directions. Some of you have worked through my free trading course. (If you haven't, I'd encourage you to check it
General Comments
[dc]R[/dc]eader Wei asks: From the examples in the book, you are clearly a long term trader using daily and weekly time frames. But what combination of time frames would you think is the best to apply the concepts and strategies in your book to day trading? Wei,
Failure Test
[dc]I[/dc] want to write what might be a complicated blog post, but stick with me. I'll try to make it as clear as possible, because there is a good lesson here. Today, I want to look at volatility, how volatility evolves (changes), and how we can
General Comments
[dc]R[/dc]ichard asks: "I saw a trade setup, but also saw reasons not to take it. [MACD divergence] A news release was also scheduled soon, and a large move before the report set up the trade again. I didn't take the trade, but the report
Failure Test
[dc]T[/dc]he chart above is a daily chart of the EURUSD. I've written before about some of the challenges with using technical analysis in currencies—it's not that it can't be done, but it does require, in my opinion, a slightly different
General Comments
[dc]I[/dc] wanted to share a few thoughts and some analysis that we published in our research a week ago, looking at the supposed "sell in May…" effect. There are a few lessons here, ranging from how to think about the market statistically, to how to factor
Breakout
[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 it has developed, and see if we can derive some trading ideas. First, the driving concept here is