General Comments
[dc]I[/dc]n an earlier post, I wrote of the need for simplicity in trading. I suggested you could probably throw out the vast majority of the tools you use and the things you look at, and your results would likely improve. There is a problem with this plan,
Anti
A weekly sell Anti setup in TWC contradicts the prevailing sentiment.
General Comments
Being good at being wrong?
General Comments
Reader Mike asks: How do you think a beginner should start trading? Hi Mike. Good question, and I don't think there is one possible answer. I can tell you that the most important thing this new trader needs to do is to moderate her expectations. There are still
Anti
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,
General Comments
A reader asks if there are any backtests supporting my work.
General Comments
Adam, you say stocks are more prone to mean reversal and we know commodities tend to trend. But what about equity index futures like the ES? Are they more likely to reverse to the mean like their underlying? And does the 2 modes also depend on the timeframe you watch?
Breakout
Volatility contraction sets the stage for a selloff.
General Comments
Thoughts on the value of simplicity in trading...
Breakout
[dc]T[/dc]echnically speaking, the chart of Gold is complicated and unclear. To recap: the second half of 2011 saw a sharp collapse in prices. This selloff found support around 1600 (1,550 on this back-adjusted chart), a level which was tested at least 4 times on the weekly
General Comments
One possible issue with "overnight" gaps affecting short-term patterns on ETP charts. Consider carefully whether you should be using futures or cash instead.
Anti
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