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I received a good question from a long-time reader on a trade he executed in CREE. Here's Jim's (edited) question: I’ve been trying to swing trade for a few years now... Regrettably, the broad market indices usually leave me in the dust each month. An
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Gaps are important. Gaps on charts can show powerful shifts in market dynamics, and we can identify some interesting tendencies around these gaps. Intraday traders often find an edge in fading gaps, but let's look today what happens over a longer time span. Consider the daily chart of
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Just a quick followup to this post, in which I suggested the US Dollar might be set for a fakeout rally (that has happened) that might fail into a sharp selloff (this could be setting up.) Let's look at what has developed since I published that post a
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Since my other post today led you down a long trail of something that did not work, let me leave you this weekend with a pattern to watch over the next several weeks. Let's consider a potentially bearish pattern in Apple (Nasdaq: AAPL), and how that might play
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This chart shows a common context for the Anti pattern: following an overextension of an established trend (A), the market makes a sharp counter-trend move (B), and then pulls back in a complacent pullback (C). This sets up a condition that favors the possibility of another trend leg, roughly proportional
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The "Anti" is a name coined by Linda Raschke (in her excellent book Street Smarts) for a trade that was originally defined by an oscillator pattern—when short term momentum pulls against (hence, "anti") longer-term momentum, the stage is set for a powerful snap in the
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A weekly sell Anti setup in TWC contradicts the prevailing sentiment.
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Continued from this chart earlier this week, Gold shows further evidence of breaking down. If you do not have a position, use small daily consolidations to position short, for example, entering on a stop (or a stop-close-only) below yesterday's low. You are still essentially trading a weekly pattern,
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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
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I tend to believe it's usually counterproductive to do too much in-depth technical analysis on different market cap or sector indexes. Everything is so tightly correlated anyway, so differences often become a matter of analyzing noise. Looking at retracement ratios and trendlines on these instruments and trying to
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Note the weekly bear flag on the S&P 500 index. You may call it by a number of different names (wedge, pullback, anti, flag, etc.), but the concept is the same: A period of contracting volatility with an upward bias following a sharp selloff. This pattern could be
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[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