Failure Test
Chart of the Day: Managing the Failure Test in AAPL
The failure test trade in AAPL develops.
Failure Test
Failure Test
Chart of the Day: Failure Test in AAPL
A failure test in AAPL gives a long entry.
Failure Test
Chart of the Day: Pattern Breakdown in Corn
Grains have had dramatic uptrends for most of the summer. At A on this chart, we were looking at a possible long entry—had prices quickly recovered back above the bottom of the range, this would have been a classic Wyckoff spring, and a strong signal to buy for at
Failure Test
Chart of the Day: Failure Test in AAPL
This chart shows a clean failure test in AAPL. The pattern is a brief probe above resistance, followed by an immediate failure and sharp reversal. Many traders would be reluctant to short after a move like this, as it is always possible to point to any number of "levels&
Breakout
Chart of the Day: Breakout in the S&P 500
One of the tools I use to evaluate market action is the standard deviation spike, which expresses each day's return a standard deviation of the previous 20 trading days. (This tool is also discussed in The Art & Science of Technical Analysis .) This gives an important perspective on
Breakout
Chart of the Day: Potential Failure Test in Beans
The most important levels in markets are those that are clearly visible to all market participants. The July pivot high in Soybeans is a good example of an important level to watch. A failure test (think 2B short entry) at this level would present a serious challenge to the integrity
Failure Test
Chart of the Day: Consolidation Near Bottom of Range in Corn Futures
Two things to note on this chart of Corn futures: 1) The clean failure test above the summer's highs, followed by a sharp selloff to the bottom of the range. 2) Price is unable to rally strongly off of the support at the bottom of the range. This
Failure Test
Video Blog: the Failure Test
This video blog is a follow up from this post, and digs into some of the details behind the Failure Test trade in a little more depth.
Failure Test
Trading Pattern: the Failure Test
[dc]I[/dc] want to do a small series of posts looking at some of the most important trading patterns I've used over the years. Rather than go in-depth with multiple examples, I'll keep these posts as a high level, introductory overview and will focus only
Failure Test
Current Technical Situation: S&P 500
A failure test that justifies flipping a long position to a short position.
Failure Test
Domestic Stock Index Analysis (10/6/11)
A look at the technical position of the S&P Index 10/6/11. Illustrates use of simple technical patterns and relationships to derive an edge.
Failure Test
Market Pattern: The Failure Test
There is a theory of market behavior that essentially says that markets exist to create trading activity and volume; whether this is precisely true, or whether it completely explains all market activity, is not important. The concept is valid: markets move to levels where orders are clustered. Markets run stops.