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?
Pullback
We spend a lot of time, as traders, developing skills of precision trading: when to enter trades, where to put stops, when to add, when to take partial profits, when to get out and reenter. Most of the writing about trading, especially from technical or tactical perspectives, focuses on finding
General Comments
I thought it might be useful to take a look at one of the most common trading patterns, the flag, and, more importantly, to see what happens when it doesn't work out. If we understand how patterns fail, we are better equipped to trade those patterns, and, sometimes,
Pullback
A look at the technical justification and support for a long trade in the Russell 2000 index, or other US indexes.
Pullback
This is the second in a series of posts on pattern recognition, following up on yesterday's post that dealt with trading simple pullbacks. The pullback truly is one of the most useful trading patterns, and many traders find success with a program focusing on pullbacks for trade entry.
Pullback
I'm starting a short series of posts here on pattern recognition, focusing on simple patterns that I have found useful in actual trading. Some of my readers may have questions as to whether it is possible to trade profitably based on simple patterns, given that so much modern
General Comments
The most important factor setting up pullback trades, and a simple framework for market and trend analysis that really works.
General Comments
We are seeing a potential divergence in the performance of US and European stocks. European stocks are showing overtly bearish patterns, lead by clean breakdowns out of weekly bear flags in France and Germany. US stocks have certainly suffered, but the best shorts are likely to be in Europe. There
Individual Traders
A really interesting discussion developed in the comments to this post on pullbacks. Since you're capable of clicking the link and reading the comments, I won't copy the whole discussion here, but just some highlights: Markus asked: Adam, what I don't understand is how
Pullback
I've written quite a bit lately on things that don't work, and tried to point out some errors in common practical technical analysis. Yes, I'll do more of that in the future (I suppose perhaps because I am a curmudgeonly soul (and, really, how
Chart of the Day
Here are a few trading ideas. Some may be immediately executable; some may need to go on a watchlist. In most cases, these are consolidation plays and could be entered on short term breakouts (e.g., breakout of previous day's high, if looking to buy). There's
General Comments
[dc]O[/dc]ur trading ideas, "setups", if you will, must change with market conditions. Certain types of trades are more relevant at certain times. For instance, if the market is dramatically overextended, maybe we look for Antis, trend termination trades, or points to fade overextended individual names.