Technical Patterns
Here’s a question from Alexander: I understand TA to some degree, I studied your book and the wonderful video course. But sometimes I can still look at a chart and not have a proper bias to as of where the price will continue to go. I can make an
General Comments
This week, in our pattern analysis group, we’re looking at Trend Termination plays. This terminology might be a bit confusing at first. It stems from a system I came up with when I wrote my first book, under which I noted that we can categorize all technical, directional trades
Technical Patterns
Today’s question comes from Mohammad, but the question emerged over the course of a more extensive discussion, with other people contributing, clarifying, and confusing! Here’s the question, paraphrased: If we trade “price action” can we and should we use indicators? This is an old question. I first remember
Technical Patterns
The first time you hear someone tell you to ignore something happening in the market, it might be surprising. Ignore it? I thought we were supposed to be trying to figure everything out! Why would we consciously ignore something? If we're trying to be responsible, educated traders, why
Technical Patterns
Reader Jeff asks: Quick and I hope simple question here. What is the most important thing to look for on a chart when I'm studying for an entry? Candles? Indicators? Classic patterns? Where should I start? (Background is I'm a struggling trader a few years but
Anti
Recent action in copper futures gives us some market lessons. These can be adapted to other markets and timeframes (so if you just trade stocks or currencies, don’t skip over this because it’s a futures market!) I’ll try to keep this as short as possible, but there
Psychology
One of the great things about writing a daily research piece is that it serves as a good record of my thought process and perspective on markets on each and every trading day. (Hint: developing traders might try the same thing. When I was figuring all this out, I wrote
Technical Patterns
Financial markets are confusing--there's no doubt about that. Sudden reversals, spikes, dull dead periods exploding into panic, fakeouts and fakeouts of fakeouts... the list goes on, but traders and investors quickly discover that reading the market is far from easy. Wouldn't it be great if there
Technical Patterns
In my last blog post, I made an argument that the details of patterns do not matter--get the idea and the big picture right, and everything else is much easier. While I firmly believe that this is true, it does leave some important questions unanswered: mostly, exactly where, when, and
Technical Patterns
When I started trading, like many people, I was drawn to traditional technical analysis. I spent hours and hours studying different variations of patterns, often after creating the charts myself on graph paper. I measured ratios, looked at different kinds of averages, relationships of highs and lows within bars within
Technical Patterns
A few months ago I wrote a post on a certain kind of trending pattern I have called "slide along the bands." This pattern is characterized by a market that pushes into either the upper or lower Keltner channel, and trends against that channel with relatively few pullbacks.
Technical Patterns
If you could hear anything beyond the screaming this morning over Greece, you probably also heard the news that China is now officially--yes, that's right officially--in a bear market as the major index has slipped 20% from its highs. This makes for a good headline (and I'