The Trend

Two of the Most Powerful Chart Patterns

Support and resistance are two of the most powerful technical indicators on the market.

Without watching either, you may just buy or sell at the wrong time. 

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How to Spot Market Reversals with Bollinger Bands

If you pull a rubber band too far, too fast, what happens?

It snaps back, right?  The same thing happens with stocks, indexes, and currencies.  If they’re pulled too far in one direction, eventually they’ll snap back and revert to back to the mean.  In fact, we see it happen all the time.

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Three of the Safest Pot Stocks to Own in 2019

The marijuana industry had a game-changing year.

Canada approved its use last year. The Farm Bill legalized industrial hemp, and CBD. More U.S. states have approved its recreational and/or medicinal use. Americans have become more accepting of marijuana… the list goes on. No wonder analysts like Cowen & Co. say the marijuana market could be worth as much as $75 billion by 2030. 

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Top Technical Indicators for Any Trading Plan

Every time you trade a stock, it’s essential that you understand the psychology of the buyers and seller.  If not, you begin to run the risk of losing money.

That’s the last thing any of us want to do.

So, we need to understand if the bulls have gotten ridiculously, and unsustainably bullish.  And we need to understand if the bears have begun to lose their minds after a sell-off.

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Three of the Most Consistent Candlestick Patterns to Understand

Candlestick patterns may have some odd names.

Abandoned baby bottom, three black crows, dark cloud cover, for example. But these are some of the most powerful tools you can add to your strategy, including these three.

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Why Oil is Struggling in Oversold Territory

Since early October 2018, oil prices have been clobbered.

Prices sank from a high of $76.90 to a recent low of $49.41. 

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Two Simple Tools to Spot Reversals in the Fear Gauge

2018 will go down in history as one of the most volatile on record.

But believe it or not, one of the most consistent ways to make money on the market is by trading excessive fear, as dictated by the Volatility Index.

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Death Cross on the Russell 2000 could be an Opportunity

In late November 2018, there was a considerable fear the Russell 2000 was setting up to fall even further.  All thanks to the appearance of a “death cross.”  However, more often than not, the death cross on the Russell 2000 can lead to a buying opportunity. 

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The Benefits of Combining Fundamental and Technical Analysis

Over the last 22 years, I’ve heard countless arguments for and against fundamental and technical analysis. While neither is perfect, they both have strengths we can capitalize on.

Fundamental analysis shows us what’s under the hood.

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Two of the Best “End of Year” Opportunities

It’s time to think about year-end strategies.

We already know:

  • The first half of the year tends to bring better returns that the second half.
  • Dow Jones Industrial Average stocks whose price was beaten down in the previous year has a tendency to outperform the rest of the DJIA in the following year.
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A Fundamental and Technical Spotlight on Tesla

Tesla Inc. has been a slow-motion train wreck.

All thanks to un-CEO behavior from Elon Musk.  

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Three of the Most Powerful Technical Pivot Indicators

When bungee jumpers plummet off a bridge, what happens?

They pop back up, right?

The very same thing happens with stocks when they become too overbought or oversold. And if we can position ourselves for the exact moment the “snap back” happens, we can make money. And it’s actually quite easy to spot.

 

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What Every Smart Investor Should Know about Market Pullbacks

Early October 2018 was quite painful for the average investor.

The major indices fell out of the sky.  The tech-heavy NASDAQ fell from 8,100 to 7,300. The S&P 500 dropped from 2,925 to 2,725.

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Secrets of the Doji Master: How Candles Can Pinpoint Opportunity

Way back in the 1700s, Munehia Homma first created candlestick charts for rice trade.

Oftentimes, he would record the opening day’s price of rice, the low and the close.

 

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Trading the J-Hook Continuation Pattern

Technical analysts attempt to predict direction by studying past price action and charts. And understandably, there are critics. In fact, some see it a pseudo-nonsense. 

Forbes for example says it’s fundamentally flawed.

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The Two-Step Process to Uncovering Value after a Pullback

“Why would I want to touch a stock that just plummeted?”

My answer, “Why not?”

What many traders don’t understand is that many pullbacks create opportunities, especially when it happens to a well-known stock. 

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How to Use the Chaikin Oscillator to Analyze Markets

Any time you use technical analysis, confirmation is essential.

If you’re not willing to confirm, you’re doing yourself a great disservice. In fact, at no time will I ever just use Bollinger Bands (2,20), MACD, relative strength, or Williams’ R% alone.

That’s an amateur, foolish move.

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