The Trend

The Most Important Concept in Technical Analysis

The trend is the most important concept in technical analysis.

Its strength or weakness can dictate the overall direction of your favorite stock or index.  Potential uptrends can be characterized by a series of higher highs.  Potential downtrends can be characterized by lower lows.

The Most Important Concept in Technical Analysis

The trend is the most important concept in technical analysis.

Its strength or weakness can dictate the overall direction of your favorite stock or index.  Potential uptrends can be characterized by a series of higher highs.  Potential downtrends can be characterized by lower lows.

How to Spot a Breakout Opportunity

Breakouts can trigger incredible opportunity.

Once a stock begins to trend to a new high, or takes our prior resistance points, new buyers begin to emerge, as momentum begins to pick up steam.

Two of My Favorite Moving Averages

When it comes to technical analysis, one of the necessities for success is the moving average.  In fact, for years, I’ve personally relied on two of them – the 50-day and even the 200-day moving averages.

Two Powerful Candlesticks Patterns You Can Use Right Now

Over the weekend, I had a family get-together.

They’re always fun.  I get to see relatives I haven’t seen for years. 

Unfortunately, they’re also always full of people you wish you could ignore. My Uncle David is one of those people. The guy who thinks he knows everything about everything, especially about trading stocks and options.

Kroger: One of the Most Ridiculous Overreactions

Traders overreact.  They do it every day. 

And if you can spot it in time, you could make a fortune.

Look at Kroger Company (KR), for example. 

Gap Trading Basics

All of a sudden, there’s a gap in the chart of your favorite stock.

Surprise news, earnings, something unexpected caused a bout of extreme optimism or pessimism that resulted in the move.

Look at Palo Alto Networks (PANW), for example. 

Using Fibonacci in Technical Analysis

Nobody ever said trading was easy.

But as long as you’re prepared, the easier it becomes. Especially if you’re trading with technical analysis tools, such as Fibonacci retracements.

 

How to Spot a Correction (and What to Do about It)

Two of the biggest catalysts in any market are fear and greed.

We’re told to buy excessive fear and sell excessive greed. 

Quite often, though, traders will sell on fear and buy on greed.  But that can be a costly error, one that even Warren Buffett can attest to.  To this day, he still advises that a “climate of fear is your friend when investing; a euphoric world is your enemy.”  And of course, we all remember his advice to “be fearful when others are greedy and greedy when others are fearful.”