Technical Patterns
Last week, I covered pullback trading, which is one of the most common and most important with-trend trading patterns. This week, I will dig deeper into some different patterns, but I thought it was worthwhile to first think a bit about the differences between with trend and countertrend trading. This
Nested Pullback
This is the third article in my series on pattern recognition, and the last on pullbacks. Most patterns in markets are relatively simple, and most patterns were labeled long ago. True, there are many variations and refinements on pattern names, but there just aren't that many "new&
Pullback
This is the second in a series of posts on pattern recognition, following up on yesterday's post that dealt with trading simple pullbacks. The pullback truly is one of the most useful trading patterns, and many traders find success with a program focusing on pullbacks for trade entry.
Pullback
I'm starting a short series of posts here on pattern recognition, focusing on simple patterns that I have found useful in actual trading. Some of my readers may have questions as to whether it is possible to trade profitably based on simple patterns, given that so much modern
Market Math
Reader Tom asks: I have been reading your blog for a few weeks and I don't see any mention of sentiment. I also see you trade futures but you do not talk about Commitment of Traders like on the Euro recently. Is this stuff you use but don&
General Comments
This is an obvious issue, but one that is often ignored. The argument of many academics is that you can’t make money trading; your best bet is to put your money in a diversified fund and reap the baseline drift compounded over many years. (For most investors, this is
Readers Questions
I recently received a couple questions on the same topic: people asking where the bumper music I used for the videos for my (free) trading course comes from, with a few extremely flattering guesses as to who the composer was. :) As I've said before, I was a musician
Chart of the Day
Markets normally move in alternating waves of with-trend impulse moves interspersed with lower volatility pullbacks. This is a reliable trend pattern, and, in fact, is enough to base a trading plan on. Typically, a market will make a sharp move in one direction, will consolidate somewhere near the extreme of
Technical Patterns
I post a lot of critical thoughts, and spend a lot of time encouraging people to think deeply about the technical tools they use. Recently, I've received a lot of questions about what I think actually works. Though I've answered this in some depth before (and
Market Math
Continuing from my previous post on moving averages, let's take a look at using a moving average as a trend indicator. Again, here is some material from the unpublished part of my book, on using the slope of a moving average as a trend indicator, and a look
Market Math
Ok, so I'll warn you up front: this one's going to be a little bit difficult. The response to my post on the 200 day moving average in the DJIA and the S&P 500 was very positive, and I received many thought-provoking questions and
Chart of the Day
I thought this was a good time to take a look at current market conditions in US stocks. This is certainly a time when risk, emotions, and volatility are elevated, but it is also a market that is still within "normal parameters". Probabilities favor a snapback, but there