The Trend

Technical Analysis: Three of the Most Powerful Candlesticks to Use

When Munehia Homma first created candlestick charts in the 1700s, he had no idea it’d change the way we look at stocks 300 years later.

To him, candlestick charting was meant for the rice trade.

Now, when applied to technical analysis, it can help give us a clear picture of trader emotion.  

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How to Use Full Stochastics in Your Trading

Fear can destroy a stock in seconds.

But it can also lead to quite a bit of opportunity.

Look at Coca-Cola (KO), for example in late February 2019. 

 

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How to Use the Williams’ %R in Your Trading

One of the best ways to become a great trader is to try new things.

Unfortunately, there’s no such thing as a perfect strategy. But if you’re willing to trade outside of the box, you can become a better trader.

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Bollinger Band and Keltner Channel Trading: Similarities and Differences

magine jumping off a bridge with a bungee cord.

As you begin to reach the end of the cord’s pull, you’re quickly yanked in the other direction.

That very same thing happens with stocks when they become far too extended in overbought or oversold territory. And we judge exactly where that’s likely to happen with two key indicators.

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Using the RSI Indicator Correctly Can Increase Your Odds of Success

Of the dozens of indicators on the market, one of my personal favorites is Relative Strength (RSI), a momentum oscillator that measures the speed and change of price movements of a stock. The closer RSI gets to its 30-line, the more oversold the stock is considered to be. The closer RSI gets to its 70-line, the more overbought the stock is considered to be. 

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How to Use the Chande Trend Meter (CTM) with 80% Success

Unbelievably, technical analysis is still written off as useless.

In fact, some denounce it as a laughable study of charts, patterns, and squiggly lines without any concrete or profitable results. Others argue it’s only good for short-term trading.

However, none of that is true.

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Three of the Best Ways to Hedge for Market Downside

Markets are a fickle beast.

Even with the U.S. and China nearing a trade deal, markets began to pull back in March 2019.

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One of the Easiest Ways to Spot Trading Opportunities

Fear can destroy a stock in seconds.

But it can also create a wealth of opportunity if you know when to buy it. In fact, it’s how investors like Warren Buffett, Sir John Templeton, and Baron Rothschild made their money.

Each of them subscribed to fundamental analysis to do so.

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The Five Key Technical Indicators You Need to Use - Always

One of the best ways to spot reversals is by spotting excessive fear.

To do so, we typically watch for agreement among Bollinger Bands (2,20), MACD, Relative Strength (RSI) and Williams’ %R in either overbought or oversold territory. However, we can also strengthen what those indicators say by adding in the Money Flow Index (MFI).

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How to Spot Options Opportunities

We’re often told to “Never buy a stock hitting a 52-week low.”

“Stocks in downtrends tend to stay in downtrends.”

“Any stock hitting a 52-week low will always be weak.”

 

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How Using the Money Flow Index (MFI) Can Give You an Edge

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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Five Simple Ways to Protect Your Portfolio from Volatility

For many, it was one of the most exciting times in history to be an investor.

Stocks soared to new highs. Investors poured money into stocks on an improving economy.  

Investors couldn’t lose. 

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Using the Chaikin Oscillator to Stay on the Right Side of the Market

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.

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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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