Pullback
One of the key questions that comes up with developing traders is “how do I get into trades? Where exact do I enter?” On one hand, the answer to that is that it really doesn’t matter that much—if you get direction right (meaning you can read market structure
Chart of the Day
One of the nice things about swing trading is you can have resting orders, so your alert that a pattern has triggered is an order being filled. Here's a nice pattern to put in your trade plan: the nested flag. (I came up with that name years ago,
Nested Pullback
Chart of the Day
Train your eye to see and process inside days automatically. (Note that this chart was snapped around 10:00 EST, so things will likely be very different by close. Whether or not you execute intraday or wait for the close (if you're a swing trader) is another discussion
General Comments
One of the problems swing traders in stocks face is correlation; the sad reality is that stocks mostly move together, and trades in stocks mostly win and lose together. If you buy four names and short four at the same time, there's a pretty good chance that one
Nested Pullback
Patterns are important in trading; you might even say that trading is basically a game of recognizing the right patterns and doing the right thing when they happen. Most of you who have read my blog or my book, or have seen the research I write every day, know that
Nested Pullback
This is the third article in my series on pattern recognition, and the last on pullbacks. Most patterns in markets are relatively simple, and most patterns were labeled long ago. True, there are many variations and refinements on pattern names, but there just aren't that many "new&
General Comments
[dc]I[/dc] want to share the thinking and reasons supporting a technically-motivated short position in Treasury Futures. I think it is possible to simplify the trading of patterns too much, and to imply that all a trader has to do is to simply execute some basic patterns and make
General Comments
Crude Oil is consolidating lower following the break of the trendline. This pattern is perhaps more clear on the weekly chart, but it appears to be a small daily consolidation pointing lower. I used the term "nested pullback" in The Art & Science of Technical Analysis to refer
General Comments
The small consolidation (B) above the top of the parallel trend channel should provide another spot to add to or to initiate long positions on further strength. One way to trade this pattern would be to simply enter a long on a strong close above this resistance, though an intraday
General Comments
The bear flag is a pattern that plays out in all markets, though it tends to resolve less clearly (i.e., with more fakeouts and false breakouts) in currencies. Why? I'm not sure, but it could be that the underlying dynamics of buying and selling pressure, while still
General Comments
Longer-term patterns in the EURUSD are strongly supportive of a bearish trade, perhaps targeting parity or lower. This is an aggressive entry, but it is often possible to enter after a very small consolidation near recent lows. In this case, stops could be established somewhere in the neighborhood of 1.