The Trend

Always Look for Agreement with These Technical Indicators

I love when traders tell me technical analysis doesn’t work. 

While they’re entitled to be wrong, the fact remains that technical analysis does work, sometimes by up to 80% of the time. Granted, there is no Holy Grail, but if we use the right indicators, we increase our odds of success. Especially if we apply those indicators to well known stocks that may only be down temporarily.

Let’s look at Raytheon (RTN) for example.

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The Importance of the Money Flow Index (MFI)

When it comes to trading, one of the best ways to tell what’s happening is by paying attention to the flow of money in and out of a stock. 

Surely, none of us want to buy a stock if money is flowing out, right? 

Instead, we want to buy if we’re seeing money flow in, or short if we begin to see signs that money is about to start flowing out of a stock.

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These Technical Indicators are Musts for Your 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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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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How to Identify Flag and Pennant Setups

Once you begin to understand technical analysis, you’re literally looking at a consolidated view of the very forces of supply and demand – the two key forces that drive stocks. 

We’ve already discussed some of the most powerful and most used patterns, like Bollinger Bands, Fibonacci retracements, relative strength, head and shoulder patterns, breakouts, and even how to use candlesticks.

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Trading 101: The Most Important Part of Any Trade

Buying a stock is the easy part.  Knowing when to sell – that’s the hard part.

None of us want to part ways with a winning stock. But if you don’t have an efficient exit strategy, that winning stock could become nothing more than a dud. Far too many of us trade on emotion. We don’t want to sell our winners, fearing we’ll miss another leg up in the stock. 

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A Sure Way to Know When to Sell High

Buy low, sell high -- it’s an easy rule to follow. 

Unfortunately, selling is often the hardest part. 

“Jeez, if only I held that stock for one more day.  I could have been up another $2,500” is often the thought process. What we fail to consider is that we made money. We accomplished the initial goal. Better yet, we didn’t lose anything.

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Analysts Turn Bullish on Gold, But Beware

Investors piled into gold in June 2019, sending the precious metal to a six-year high.

All thanks to tensions with China, a more dovish Federal Reserve, and the latest “hard-hitting” sanctions on Iran after a U.S. drone was shot down. Remember, gold is a safe haven and a good store of value during times of a weaker dollar, slowing economic activity, and geo-tensions.

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The Basics You Need to Know about Trading Gaps

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.

 

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How the RSI Can Lead to 80% Success Rate in Trading

Traders are often told to buy excessive fear or greed.

Unfortunately, many aren’t aware of when to actually pull the trigger, or realize when fear or greed have gotten way out of control.

But there’s a simple way to know exactly when to buy and when to sell.

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The Trick to Spotting Pivot Points up to 80% of the Time

It doesn’t matter how fearful investors get.

Look at Apple (AAPL) for example.

The stock was severely beaten down on trade war fears. Better yet, major analysts were saying, “The bad news is over” for the stock. 

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How to Spot a “Blood in the Streets” Opportunity in Big Tech

In early June 2019, markets pulled back sharply.

And it wasn’t just because of the trade war. This time, falling knives in big tech forced the NASDAQ into correction territory. All thanks to antitrust regulator’s plans that could lead to broader oversight on Facebook, Google, and Amazon.

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Three of the Most Overlooked Technical Patterns

They’re some of the most overlooked trend reversal patterns.

But spot them first, and you could jump well ahead of the pack.

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Trading Secrets: One of the Easiest Ways to Trade Oil Prices

For the better part of 20 years, I’ve noticed an interesting pattern with oil.

While OPEC, non-OPEC, supply-demand, and international chaos certainly play a major role in determining direction, oil prices often fall within a predictable technical pattern, as dictated by excessive fear and greed.

Here’s a two-year chart of oil prices for example.

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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.

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How to Use the Parabolic Stop and Reverse (SAR) Indicator in Your Trading

The Parabolic Stop and Reverse (SAR), commonly known as Parabolic SAR is a trend following indicator that highlights current price direction.

It also provides entry and exit signals as well with dotted lines.

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How to Spot Overbought Pivots up to 80% of the Time

With the incredibly popular Avengers: Endgame film, shares of Disney Co. exploded from a low of $107.50 to $142.50 in April 2019.

After the film grossed $1.2 billion in its opening weekend (biggest in history), analysts were still seen raising price targets.

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