Failure Test

Chart of the Day: Consolidation Near Bottom of Range in Corn Futures

AdamHGrimes

16 Aug 2012 — 1 min read

Two things to note on this chart of Corn futures: 1) The clean failure test above the summer's highs, followed by a sharp selloff to the bottom of the range. 2) Price is unable to rally strongly off of the support at the bottom of the range. This shows a lack of buying support, and sets up a good trade on a potential break below the bottom of the range. Note that this breakdown, should it occur, is another nail in the coffin of the summer's strong uptrend—this would be a serious challenge to trend integrity.

This is one of the advantages to understanding a set of trading patterns as I outline in the the book

. Whether you trade them as actual trades or not, they provide a good framework for market analysis and also give good insight into the balance of buying and selling pressure in the market at any time.// < ![CDATA[ // < ![CDATA[ <span style="overflow:hidden;line-height:0px" data-mce-style="overflow:hidden;line-height:0px" id="mce_0_start" data-mce-type="bookmark"> // ]]>

Markets Evolve. So Do We. Here's What's Next.

Everything changes—the only constant in life and markets. When we think we have it figured out, it changes. This is true in markets, life, and everywhere else. Over the past few months, I’ve been getting a lot of solid work done on the coding front. I’ve launched

One Mistake Can Kill: Why Almost Right Is Still Wrong

Here we are in the dog days of summer. For many traders, this time of the year is usually difficult. Lower trading activity, volume, and generally lower volatility conspire to keep a lid on many opportunities. This is a time of year when I get a lot of thinking done,

What We’re Doing (and Not Doing) with AI

TL;DR: AI is transforming everything, but not in the way most people think. The real threat isn’t conscious machines—it’s the flood of low-quality, low-effort content. At MarketLife, we use AI as a tool, not a creator. I still write all long-form content myself. We use AI

Chart Reading Isn’t About What’s Right. It’s About What Works

What’s the right way to read chart structure? That’s the wrong question. This post explains why context and utility matter more than correctness in trading charts.

Read more

Markets Evolve. So Do We. Here's What's Next.

One Mistake Can Kill: Why Almost Right Is Still Wrong

What We’re Doing (and Not Doing) with AI

Chart Reading Isn’t About What’s Right. It’s About What Works