Support / Resistance
[dc]T[/dc]his chart shows a potentially actionable short setup in the stock of SanDisk Corp. (Nasdaq: SNDK). Yes, this is a stock sitting "on support", but the tight consolidation right on that support is more indicative of support failing than holding. Also, note the volatility compression
Pullback
[dc]W[/dc]hen faced with a strong uptrend with no pullbacks, as we've recently had in major domestic stock indexes (S&P 500 futures pictured in this chart), traders have a difficult decision: One, this contracting volatility makes the market vulnerable to a sharp selloff as
Anti
[dc]C[/dc]ontinuing from this post, I thought it might be useful to show the initial outcome of the APOL Anti trade. As a refresher: * A: Overextension. (In this case 3 pushes and climax beyond the upper Keltner channel.) * B: Sharp countertrend momentum indicating that sentiment and control has
Pullback
[dc]T[/dc]his chart shows the bull flag in JAZZ that tested the previous swing high and failed. As this stock was nearing that previous pivot, I tweeted that it was breaking out, but not to chase it. Why? Because this day was pretty close to a worst-case scenario
Climax
Trends end in one of two ways [dc]T[/dc]he last lecture looked at the power of an intact trend. Of course, trends do not go one forever. They do end, and they tend to end in one of two predictable ways. Consider an established uptrend that has shown
Pullback
[dc]T[/dc]he bull flag is a simple, classic pattern that is a fundamental expression of the ebb and flow of buying pressure in an uptrend. In this case, we entered a position in Jazz Pharmaceuticals pcl (Nasdaq: JAZZ) intraday, but the position could also be initiated on the
General Comments
2: Trends are more likely to continue than to end [dc]T[/dc]he previous post in this series considered the first principle of price behavior: that markets tend to alternate between periods of trends and trading ranges. This post will dig a little deeper into the power of an
Individual Traders
The first principle of price behavior: Markets alternate between trends and trading ranges.
Anti
[dc]T[/dc]his chart shows an Anti pattern in the chart of Apollo Group, Inc (Nasdaq: APOL). This is an important trend termination that often leads to some very clean trades. This is a repeatable pattern in all timeframes: * A: Overextension. (In this case 3 pushes and climax beyond
Individual Traders
The building blocks of market structure and price action. [dc]T[/dc]echnical analysis is the art and science of predicting the future direction, timing, and/or magnitude of a market’s movements, mainly by using information contained in the price changes of that market. The term technical analysis is
General Comments
[dc]T[/dc]his chart of Natural Gas futures shows a classic pattern: parabolic acceleration outside the Keltner Channel and the parallel trendline. It is difficult to play a move like this as a fade (i.e., buying for a long) due to potentially unmanageable volatility, but it is always
General Comments
[dc]T[/dc]his pullback in Gold futures could offer an opportunity for a short. Positions could be established on a weak close, looking for a first leg to retest previous lows (1,525 - 1,540 basis February contract).