General Comments
Simplify, simplify, simplify…
Thoughts on the value of simplicity in trading...
AdamHGrimes
Breakout
Chart of the Day: Gold
[dc]T[/dc]echnically speaking, the chart of Gold is complicated and unclear. To recap: the second half of 2011 saw a sharp collapse in prices. This selloff found support around 1600 (1,550 on this back-adjusted chart), a level which was tested at least 4 times on the weekly
General Comments
A Problem with ETF Charts
One possible issue with "overnight" gaps affecting short-term patterns on ETP charts. Consider carefully whether you should be using futures or cash instead.
Anti
Short setup in Technology (XLK)
There is a clear bearish Anti setup in the Technology Sector SPDR (NYSE: XLK.) Linda Raschke first wrote about this pattern, and created the name for it. I have found it to be one of my most reliable trading patterns, and cover it in detail in The Art & Science
Failure Test
Chart of the Day: Pattern Breakdown in Corn
Grains have had dramatic uptrends for most of the summer. At A on this chart, we were looking at a possible long entry—had prices quickly recovered back above the bottom of the range, this would have been a classic Wyckoff spring, and a strong signal to buy for at
General Comments
Chart of the Day: Relative Strength Leaders
[dc]N[/dc]ot exactly a chart of the day today, but here is something that will be useful to both stock traders and longer-term investors: a list of liquid stocks, ranked by current relative strength. Now, a few points to consider. First of all, a relative strength ranking is
General Comments
Chart of the Day: Spring Setup in Corn
Corn is engaging the broad support zone at the bottom of the range. Watch for reversals and enter long positions on strong upward closes, which would put in classic Wyckoff springs. Close stops and active position management are essential—if the trade works it should move immediately and smartly higher,
Failure Test
Chart of the Day: Failure Test in AAPL
This chart shows a clean failure test in AAPL. The pattern is a brief probe above resistance, followed by an immediate failure and sharp reversal. Many traders would be reluctant to short after a move like this, as it is always possible to point to any number of "levels&
Breakout
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 day in the S&P 500 from 2/3/1960 – present (13,241 trading days.) Notice first
Breakout
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 tool is also discussed in The Art & Science of Technical Analysis .) This gives an important perspective on
General Comments
Chart of the Day: Bullish Consolidation in Gold
The small consolidation (B) above the top of the parallel trend channel should provide another spot to add to or to initiate long positions on further strength. One way to trade this pattern would be to simply enter a long on a strong close above this resistance, though an intraday
General Comments
Chart of the Day: Bull flag in Gold
Though I have written before about a potential longer-term timeframe short setup in precious metals, Gold and Silver both show overtly bullish patterns. Longs are justified on upside breakouts in either metal. // < ![CDATA[ <span style="overflow:hidden;line-height:0px" data-mce-style="overflow:hidden;line-height:0px"