Breakout
Group-think is a problem in markets; so many smart people look at the same (pretty limited) set of information, so it's easy to understand why many people come to similar conclusions. Sometimes, it pays to step back and get out of the noise and information flow, and to
Breakout
I thought it might be useful to step back and take a look at gold from a much longer-term perspective. First, the monthly chart (difference back-adjusted continuous futures): The first thing we see on the long-term chart is a big pattern of up then down. Keep in mind, this is
Breakout
We can simplify many of the problems of technical or tactical trading to one question: assume that a market just made a large move. Do we want to fade (go against) that move, looking for reversal, or do we want to take a position with that move, looking for continuation?
Breakout
Just a high level perspective on what we have going on in a few major markets this week. In general, most markets are in some kind of volatility compression. Volatility compression is a term that basically means current volatility conditions are low, relative to more "normal" volatility for
Breakout
I have written before about volatility compression, which is the tendency for markets to make cleaner, more directional moves after the volatility has contracted on the same timeframe. Triangles and/or inside bars often mark areas of volatility compression; this is one way that a simple chart pattern can point
Breakout
Reader Shai suggests a clarification on my last post, specifically concerning the gap and the idea of slippage being a good sign for a trade: Like always great posts. Again, thank you! There is one thing I would consider mentioning regarding the issue of slippage in the sense of Gaps
Breakout
[dc]I[/dc] wanted to follow up on my recent post about trading the rally in India. I ended that post with a question: We were planning to enter EPI (an earnings-weighted India ETF) on a breakout above a long daily consolidation. However, the market gapped open far above our
Breakout
[dc]T[/dc]oday I want to take a look at the recent move in India's stock market. I will discuss how we traded it (and signaled the move far in advance) in the research I write for Waverly Advisors, but, even more importantly, there are lessons for
Breakout
[dc]A[/dc] few weeks ago, I discussed a possible impending breakout in the British pound in this post. This is a good time to take another look at the pattern, how it has developed, and see if we can derive some trading ideas. First, the driving concept here is
Breakout
Silver is sitting on long-term support, with good potential downside below. There are a few things to think about here: First, this will not be a clean or easy trade; this is a trade that we have been stalking specifically for nearly a year, and have been leaning heavily short
Breakout
[dc]C[/dc]urrencies have been difficult technical trading for the past several quarters. This is partly due to the nature of currencies—though there is a lot of TA lore about currencies trending fantastically well, they also go through really choppy periods. Though currency prices are set by supply/
Breakout
No, not a "loony" crazy breakout, a breakout in the Canadian dollar (also called the loonie!) The chart above is of the USD/CAD, so up on this chart is down for the CAD. (Chicago currency futures will be the inverse of this chart.) After a long consolidation