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Market Math
Understanding intermarket relationships with scatterplots
Please read my last post first, before you begin this one. I ended the last post by suggesting that we were probably more interested in changes than in price levels. If this isn’t immediately intuitive, then think about it like this: when you put on a position, it’s
Chart of the Day
Here's a kind of chart you should be using more
As I mentioned in my social media posts, I’m travelling this week and next so I will be a bit slower to get posts out. (I think an interesting topic is “vacation” for a trader. I’m writing this from my private terrace in Rome, but I’ve also
Support / Resistance
Chartschool: The importance of the previous day's high / low
Risk Management
Trailing stops: 9 ideas you can use today
Trade management is at least as important as trade entry, and maybe a lot more important. There are two main tools for trading management: profit targets and stops. From these two simple tools, complexities explode because there are many choices—where do we put them initially? Do we move them?
Breakout
Price action triggers: how much patience is too much?
Take a look at the chart below. We were looking to enter a short in gold (or silver), based on the long downtrend, and then a bounce that was likely setting up to be a bear flag. We also knew that there was reason to be cautious and to expect
Technical Patterns
Chartschool: do your own homework
In this video, I show you how to use an Excel spreadsheet and, in just a few minutes, get some basic answers about market tendencies and market stats.
Chart of the Day
TLRY and other Pot stocks: trading extreme moves
Pot stocks are the new cryptocurrencies, at least in terms of volatility and bubble potential. Take a look at the chart of TLRY below. A few thoughts: * First, this chart is log-scaled. (One good reason to use log scaling instead of linear scaling is when there is a very large
General Comments
Chartschool: Is the move significant or not?
Trader Development
Another way to get your questions answered
The new podcast is taking off--reviews and feedback have been outstanding, and I'm thinking maybe I underestimated the power of this format. It's a great way to really dig into topics in a personal way. Of course, you have to listen to a little rambling sometimes,
Market Math
Revisiting streaks
In a previous post, I gave a look at my published swing trade record, with a title on the post of Trading is Hard! Let's revisit that concept, almost exactly a month later. The point of that post was that outcomes are "streakier" than we wish--we
Technical Patterns
Slide along the bands: a trend pattern you should know
Just a quick post here to point out a trending pattern that should be in your toolkit. Take a look at the chart of SEAS above, which shows a particularly powerful trending pattern I have called "slide along the bands". Characteristics of this type of trend are: * It