The Trend

Technical Must-Haves: Bollinger Bands and W%R

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.

Technical Must-Haves: Bollinger Bands and W%R

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.

Technical Patterns 101: Two Essential Candlestick Formations to Know

To a new trader, candlestick patterns are just a confusing bunch of odd crosses and oblong shapes on a chart. Even worse are the names, like the abandoned baby bottom, white soldiers, and doji stars.  But as odd as they may appear and sound, even the oddest ones can help give you the signal you need to be a successful trader.

How to Spot When a Stock is in Trouble

Ignore a stock clearly in distress, and it’ll cost you.

If you own a stock with negative cash flows, high debt-equity ratios, profit warnings, or even heavy insider selling, the stock is clearly in trouble.

Bollinger Bands and the Rubber Band Effect

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.

The Magic of Moving Average Crossovers

By now, you’re well aware of how to find trends using simple moving averages, such as the 50- and 200-day moving averages.   But you should also know how to potentially spot when a trend could stop dead in its tracks, or birth a new trend.

All we have to do is wait for a crossover to do so.

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.