The Trend

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 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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What Every Smart Investor Should Know about Market Pullbacks

From time to time, markets make major pullbacks. For example, in early October 2018, it 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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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 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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Gap Trading Fundamentals

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.  In early June 2017, shares closed at $118.59.  However, shortly after the close, news of a massive cyber attack began hitting headlines.  Orders come flooding in overnight.  The next day, the stock opens at $140.

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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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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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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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