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Showing results for tags 'technical analysis'.
Found 250 results
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The Aroon Indicator is made up of an Aroon Up and Aroon Down components. Values closer to 100 indicates a strong trend while values close to zero show a weak trend. If the value of Aroon Up is lower than Aroon Down, this shows a weak uptrend and vice versa.
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A TRIN value above one is a bullish signal, less than one is a bearish signal while a TRIN value with a unit value of one is a sign of a balanced market. The Arms Index is named after Richard Arms.
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It is not a very good indicator as it can be overly affected by extremes in either direction.
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The lines of the indicator look like a handle with prongs, hence the name pitchfork.
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Amplitude is positive when calculating a bullish retracement, and negative when calculating a bearish retracement.
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Advances and Declines form an integral part of analytic tools like the advance-decline ratio and advance-decline index.
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It is used by most traders to confirm the strength of a trend and the possibility of its reversal.
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It is a good indicator of market movements.
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It helps day traders to profit in unstable markets by signaling price movements.
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It is commonly used to confirm trend-line breakouts on price charts.
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The logical trading strategy for an asset which has reached its accumulation area is to buy the asset. Traders therefore watch out for areas where the asset shows accumulation so as to enter long positions at these points.
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It is normally calculated using the NYSE.
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Being a consistently profitable swing trader is a juggling act that requires one to constantly be focused on a variety of key elements of success: picking the right stocks, managing risk, determining when to sell, and even mastering the psychology of trading. In this educational trading strategy article, we will dive into the topic of knowing how and when to sell winning ETF and stock swing trades for maximum profit, using the example of an actual swing trade we are currently positioned in. As for when to sell losing trades, there’s frankly not much to say other than always have a predetermined stop before entering every trade and simply honor it. Since April 12, the model trading portfolio of our swing trading newsletter (The Wagner Daily) has been long Market Vectors Semiconductor ETF ($SMH). We initially alerted traders of the technical reasons we were bullish on the semiconductor sector (and $SMH) in this March 28 post on our trading blog. Since then, we have also reminded regular readers of our trading blog several more times about the increasing relative strength in semis. In the “open positions” section of today’s (May 13) Wagner Daily, subscribing members will notice we have trailed our $SMH protective stop higher for the fourth consecutive day. Because the ETF is already nearing our original target area of $40, while remaining on a very steep angled climb, we have been continually squeezing the stop tighter in order to protect gains, while still allowing for maximum profit. On the daily chart of $SMH below, we have labeled the increasingly higher stop prices we have used in each of the past four sessions: As you can see, our stop in each of the past four trading sessions has been raised to just below the low of the prior day’s session. Whenever an ETF or stock is nearing your target area and you wish to maximize profits while still protecting gains, setting a stop just below the previous day’s low (allowing for a tiny bit of “wiggle room”) is a great strategy. This is because basic technical analysis states the prior day’s lows and highs act as very near-term support and resistance (respectively). By using this method for trailing stops, you will be out of a winning position before the start of a significant pullback, while still allowing the gains to build as long as buying momentum remains. This system also provides an objective way for knowing when to close a winning swing trade, rather than guessing and potentially leaving significant profits on the table. Of course, there are many different ways to manage exits on winning momentum trades, and some of those methods are equally as effective as what is explained above. The reality is that any trading system can be a great one if the trader proves to be profitable with it over the long-term (even if the system involves trading by the cycles of the moon). As such, we would never imply that our system is absolutely the best way to manage stops on winning swing trades. But what we truly love about our exit strategy is its utter simplicity; simple trading strategies are the easiest to follow and thereby profit from. Why complicate a technique that has already been proven to work so well? -
Many active traders make the mistake of assuming that a winning system for swing trading stocks needs to be complicated. On the contrary, the best trading strategies are typically the most simple because they can be more easily and consistently followed. Our methodology for picking stocks is simple, as 99% of the stocks we buy in our model trading portfolio come from one of the following three setups: 1. Combo Setup – The stock must have a combination of great earnings growth and strong technical price action (some type of bullish chart pattern). Typically, these stocks are growing their earnings at a rate of 30 to 40% (or more) quarter after quarter. Furthermore, these stocks will usually have an IBD relative strength rating of 80 or higher. Since we consider these stocks to be A-rated, they can usually be held for several weeks or more. 2. Price momentum - With this swing trade setup, earnings growth is not important, but the stock must have a top relative strength rating (95 or higher) and belong to an industry sector group that is outperforming the S&P 500. These stocks can be held for a few days to a few weeks. Our recent trade in Celldex Therapuetics ($CLDX), a biotechnology stock with a relative strength rating greater than 95, is a good example of a swing trade setup based purely on momentum (bullish price action). Last month, we netted a 15% gain on our swing trade in $CLDX and will soon be posting an educational video review of that trade on our blog. 3. Blast Off - Neither earnings growth nor a top relative strength rating is necessary with this type of swing trading setup. We are simply looking for a monster spike in volume on the daily chart, combined with a 4% or more gain in that same session. This indicates huge demand. If demand is sharply greater than supply, the price has no choice but to surge higher (which is why volume is such a great technical indicator). With this setup, the one-day volume spike should be at least 2.5 to 3 times greater than the 50-day moving average of volume. These stocks can be held for a few days to a few weeks (as long as the price action remains excellent). A current example of the “Combo” setup (#1 above) can be found in Michael Kors Holding Limited ($KORS). So, let’s take a closer look at how this trade meets our parameters. For starters, the expected earnings growth of $KORS in the coming quarter is 81%, so the requirement for strong earnings growth is definitely covered. Its IBD relative strength rating is only 71, but that is compensated for by the monstrous earnings growth the company has been experiencing. Next, let’s take a look at the technical chart pattern. After several months of choppy price action, $KORS is starting to come together nicely. Upon completing a 20% pullback off its February 2013 high, $KORS found support at its 200-day moving average, then rallied to reclaim its 50-day moving average last week. Now, $KORS is working on forming a bullish chart pattern known as a “cup and handle,” which looks like this: As shown on the chart below, $KORS formed the left side of the cup and handle pattern from March to late April, and is now working on the right side of the pattern. The right side of the pattern will need several weeks to develop and form a handle with a proper buy point. During this time, the stock needs to hold above its 50-day moving average as well. This annotated chart of $KORS shows what we are looking for: YRC Worldwide, Inc. ($YRCW) is a great example of a “Blast Off” setup (#3 above). Notice the huge volume and sharp gap above resistance that occurred last Friday (May 3): As of the first 30 minutes of trading in today’s session (May 6), $YRCW is trading more than 20% higher than the previous day’s close. Obviously, such a huge follow-up price gap is not common; nevertheless, it shows you just how powerful the “Blast Off” setup can be: If not already holding this stock, the setup is definitely NOT buyable for swing trading right now (we never chase stocks). However, if/when it forms a proper base of consolidation from here, we can begin to look for a low-risk buy point (at which time we would notify Wagner Daily subscribers of our exact entry, stop, and target prices). As previously mentioned, we will soon be posting on our stock trading blog an educational review of last month’s winning swing trade in $CLDX, which will be an example of our “Price Momentum” setup.
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This stock isn't going to be the next big mover like Apple (AAPL) was in its hay-day, but it has formed a bottom and signaled the start of a move higher last week. Bottoming formations take time and typically have multiple retests of prior lows, breakdown failures (BDF) and false starts. One signal that has had a high degree of not being a false start coming out of a base is the Bullish Wide Range Bar (+WRB) on increasing volume. After falling lower with virtually no bounces at all in 2011, Corning Inc. (GLW) began to form a bottom. Like most bottoming formations GLW had its retests, failed attempts to move higher, (none ever cleared any prior highs) and a breakdown failure that was retested. Notice after the move up from that retest GLW based sideways at resistance. Pristine Tip: Basing at resistance after a move up signals buyers absorbing the supply and bullish. Last week, GLW formed a +WRB with increasing volume and closed above its recent resistance area. Look further to the left and you will see other large green candles, some even with an increase in volume, but none of them cleared prior highs. Those prior highs still have to be overcome; however, the price action that has occurred after them suggests that is going to happen. By putting together the parts of the overall price action that has occurred we have the making of a bottom and bullish signal. I could have put a few indicators on the chart to show you how they are becoming bullish and signaling a move higher also. Most likely would create a belief in those indicators as a reliable way of determining a bottom. In time, you would be moving on to the next indicator someone else used. This is the cycle most go through forever and never understand how to read the interaction between buyers (demand) and sellers (supply). Bottoms form in different ways, but if you learn to read the price action the way I've explained, you will be able to determine when that is happened. Whether you trade stocks, commodities, currencies or the market indices learn to read the price action, not indicators that attempt to read the price action for you. All the best, Greg Capra President & CEO Pristine Capital Holdings, Inc.
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This stock isn't going to be the next big mover like Apple (AAPL) was in its hay-day, but it has formed a bottom and signaled the start of a move higher last week. Bottoming formations take time and typically have multiple retests of prior lows, breakdown failures (BDF) and false starts. One signal that has had a high degree of not being a false start coming out of a base is the Bullish Wide Range Bar (+WRB) on increasing volume. After falling lower with virtually no bounces at all in 2011, Corning Inc. (GLW) began to form a bottom. Like most bottoming formations GLW had its retests, failed attempts to move higher, (none ever cleared any prior highs) and a breakdown failure that was retested. Notice after the move up from that retest GLW based sideways at resistance. Pristine Tip: Basing at resistance after a move up signals buyers absorbing the supply and bullish. Last week, GLW formed a +WRB with increasing volume and closed above its recent resistance area. Look further to the left and you will see other large green candles, some even with an increase in volume, but none of them cleared prior highs. Those prior highs still have to be overcome; however, the price action that has occurred after them suggests that is going to happen. By putting together the parts of the overall price action that has occurred we have the making of a bottom and bullish signal. I could have put a few indicators on the chart to show you how they are becoming bullish and signaling a move higher also. Most likely would create a belief in those indicators as a reliable way of determining a bottom. In time, you would be moving on to the next indicator someone else used. This is the cycle most go through forever and never understand how to read the interaction between buyers (demand) and sellers (supply). Bottoms form in different ways, but if you learn to read the price action the way I've explained, you will be able to determine when that is happened. Whether you trade stocks, commodities, currencies or the market indices learn to read the price action, not indicators that attempt to read the price action for you. Greg Capra President & CEO Pristine Capital Holdings, Inc.
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Pristine Trained Traders (PTT) whether Core Trading, Swing Trading, or Day Trading are "Pattern Traders." Each Pristine pattern is clearly defined and is taught with an understanding of not only the pattern, but also what the pattern communicates about those that created it. Most learn candlestick patterns and their names, which is elementary. Additionally, because the names define those patterns as bullish or bearish they can be completely misleading, wrong and result in losses. Here's one. In the above chart of Sandisk Corp. (SNDK), the combination of the last two candles is what is called a Bullish Harami. Any candlestick scanner software will mark it as such. The pattern is one in which a large red candlestick is followed by a smaller candlestick whose body is located within the lower range of the larger body. Obviously, the two candles meet that definition, but there is nothing bullish about them to an educated chart reader. To understand this from candlestick terms, the Bullish Harami views the large red candle range that is followed by a small candle range as the bulls taking control. While the selling pressure has eased for the moment, this pattern cannot be construed as bulls taking control. What's happened for the moment is that the sellers are taking a breather after crushing those bullish and will return. Supply clearly overcoming demand. SNDK was clearly in a strong uptrend and in an uptrend like this price either pullbacks to Minor Support (mS) or "creates support" during corrections. What they don't do is slice through Major Support (MS) like it isn't there at all. That is what SNDK did and it is a bearish event that is in no way bullish. What typically happens next is the pattern will continue lower if prices break under the low of the last green candle; a 123 continuation pattern. They may consolidate a bit longer under or slightly above the area that was MS, so it is possible to trade above the high of the green candle. That would not be a confirmed 123 pattern; it would develop into a slightly different continuation pattern. To understand what is happening let's take a look at an intra-day chart. Wide Range Bars (WRB) like the one that occurred in SNDK on Thursday (the #1 bar) are multiple smaller bars moving in one direction with strong momentum intra-day. The rapid price movement lower leaves little to no areas of consolidation or retracements. Without those areas to use as tradable reference points to sell into, we have what I refer to as a "Price VOID." After a period without a retracement (continued supply) a base forms intra-day and a narrow inside bar (the #2 bar) on the daily time frame. This is "creating a new area of resistance where there was none. If prices continue lower on the next bar (#3 bar), we would then have a confirmed 123 pattern. What I have explained above it a basic understanding of the 123 continuation pattern and used SNDK as an example to make the point that candlestick pattern names can be very misleading. That being said, there is a higher level of understanding for the use of the 123 pattern. For example, view the weekly chart of the stock EOG Resources Inc. Symbol (EOG). It's not a 123 pattern yet because the #2 bar has not formed yet, it may this week. However, you will see a large red candle breaking below a base. While SNDK broke below a base of MS, it started its move lower from a pivot high. See the difference? Both patterns signal lower prices, but these differences are what the PPT takes note of. Greg Capra President & CEO Pristine Capital Holdings, Inc.
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Typically, an increase in volume occurring in tandem with a price increase or decrease is seen as a significant indication of a trend reversal. A price change without an accompanying increase in trade volume is not usually a true indication of future price movement. Trade volume is a function of the size of the positions assumed by traders on the buy or sell side, as well as the number of traders making up these volumes. By looking at the volume changes in relation to the price movements and positions taken by traders, a trader can analyze an asset and know whether the future price of the asset will be on the buy side or the sell side.
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Stocks continued to sell off on Thursday, with tech stocks getting hit the hardest. The Nasdaq Composite sold off 1.2%, while most averages closed lower by 0.6% to 0.7%. The Nasdaq sliced through key intermediate-term support of its 50-day moving average, joining the Russell 2000 and S&P Midcap 400. The S&P 500 closed just below (but not a decisive break of) its 50-day moving average yesterday, after undercutting its prior “swing lows” at the 1538-1539 support level: The 50-day moving average is a very important support level during a rally, as it is basically the line in the sand for the bulls. When the major averages all break below the 50-day MA within a few days of each other, it is usually a good time to raise cash and sit on the sidelines. The evidence below suggests that the market is now in a corrective phase, which forces our rule-based timing model into “sell” mode: There are at least 5-6 distribution days in the market (strike 1). Most of the main stock market indexes are trading below the 50-day MA (strike 2). We do not count the Dow. Leading individual stocks are beginning to break down below key support levels (strike 3). How long will a stock market correction last? No one knows, but there is one main clue to watch out for. Can leading stocks that have recently broken down find support and stabilize? There is a big difference between leading stocks pulling back 15-20% off a swing high versus completely breaking down and selling off 40% or more from their highs. If most stocks hold above or around their 50-day MAs and fall no more than 20-25% or so off their swing highs, then we would expect any correction in the S&P 500 to be limited to around 4-6%. US Natural Gas Fund ($UNG), a current holding in the model portfolio of The Wagner Daily, is in pretty good shape after yesterday’s (April 18) strong advance. The weekly chart below shows $UNG zooming above the breakout pivot, which is always a bullish sign: As annotated on the chart above, $UNG is holding support of a steep uptrend line (black dotted line), while the 10-week MA (teal line) is beginning to pull away from the 40-week MA (orange line) after the bullish crossover a few weeks ago. One great thing about $UNG is that it has a low correlation to the direction of the overall stock market because it is a commodity ETF. As you may recall, our actual swing trade buy entry into $UNG was based on the “cup and handle” chart pattern we originally pointed out in this April 2 post on our trading blog. Presently, $UNG is showing an unrealized gain of 6% since our April 8 buy entry, and is well positioned to continue higher in the near-term. In addition to $UNG, we also continue to hold Market Vectors Semiconductor ETF ($SMH). Presently, this ETF is holding above its prior swing low, but is struggling to reclaim its 50-day MA. Nevertheless, based on our March 28 technical analysis of the semiconductor sector, we are still bullish on the intermediate-term bias of $SMH. Alongside of $UNG and $SMH, our model portfolio is still long two individual stocks (bought when our timing model was in “buy” mode): Celldex Therapeutics ($CLDX) and LinkedIn ($LNKD). Despite yesterday’s decline in the broad market, $CLDX broke out to a fresh all-time high and is currently showing an unrealized gain of 8.9% since our April 9 buy entry. The daily chart of $CLDX below shows our recent breakout entry point: Our other individual stock holding, $LNKD, is roughly break-even since our swing trade entry point. However, we do not mind holding this A-rated stock through a corrective phase in the broad market, just as long as our stop is not triggered. If the price action can remain above the 10-week MA, then we may be able to hold through earnings in early May and potentially catch the next big wave up. As detailed in this article that explains our strategy for trading around earnings reports, we previously netted a handsome gain of 22% trading $LNKD before and after its January 2013 earnings report.
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First introduced by Karl Pearson, they are used to plot data densities and for density estimation. A histogram consists of tabulated frequencies which are depicted visually as adjacent rectangles that are constructed over discrete intervals.
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Good afternoon. I have recently started my diploma work in my university about trading robots on stock market. There are a lot of books about stock markets and automated trading systems, so i really need help here... I have started with Pardo and Barry Johnson's books and technical analysis by achelis. Are these bookes good enough? or can you recommend other books about strategies, indicators, theory or any other info, that would be helpful? Thank you!
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Good Morning All; Webster defines trading as: "to engage in frequent buying and selling of (as stocks or commodities) usually in search of quick profits". Notice the key words that even Webster knew to include, "...in search of..." making an implication to the fact that 'quick profits' are ever so illusive. This definition works fine if you are learning English as a second language. It gives you a notion of what the word means. It does not do justice to the process. I am going to take this article to share some ideas regarding what makes up the essence of trading. This is MY definition, you do not have to agree with it, but perhaps if you read it closely, it may open up some ideas. As a matter of fact, if you get any 'light bulbs', please email me. What is Trading? Part One of Two. Here is a definition to consider. Trading is "Using technical analysis to find a moment in time when the odds are in your favor. Then trading becomes a matter of your entry and management." In other words, it is having the KNOWLEDGE to know when the odds are in your favor, having the PATIENCE to wait for that moment, and then having the DISCIPLINE to handle the trade properly when it goes in your favor and properly when it goes against you." Now let us dissect a little. The opening words are 'using technical analysis'. Now, I know Webster's definition would let you trade with fundamentals, but not ours. At Pristine we feel there can be no argument that the opening words are not a misprint. We begin our search on the charts. This is the only place where we find truth and useful information in the markets. We do not find useful information from analysts, not from brokers, and not from accountants. Next comes 'a moment in time'. How long is a moment in time? It depends on your timeframe. For a core trader, that moment may be a day, for a swing trader several minutes, for a day or scalp trader, perhaps only a few seconds. The point is that there is only ONE moment when that exact trade is proper. Anything past that moment, and that trade is gone. Note, there may be other similar trades that occur later (such as buying the first pullback), but these are separate trades, each one of them will have their 'moment'. Next, when are 'the odds in your favor'? Well, that comes down to a matter of knowledge of technical patterns. Every so often, a stock will 'show its hand' and give away a key secret. It will let you in when a pattern develops that appears to be something other than just random noise. "Then it becomes a matter of entry and management". In other words, here is where the psychology comes into play. Once you learn how, the intelligence actually required to enter and manage a trade is minimal. The ability to do so is rare. This is where you become your own worst enemy, and this is the level that even the most astute traders seldom pass. Then notice the three capitalized words in the last part. KNOWLEDGE to know; PATIENCE to wait; and DISCIPLINE to handle. It sounds like the beginning of the Boy Scout Creed, but is a sentence you may want to cut out and put on your monitor. Next Monday we will examine some of the finer points, such as how many traders arrive at their own definitions. Paul Lange Vice President of Services Pristine Capital Holdings, Inc
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A breakout occurs when prices are able to clear a prior price area that has been a point of resistance in the past. But this doesn't mean all breakouts are the same. A breakout can occur after a decline that is followed by a period of whippy consolidation - that in time "tightens up." It can occur in one fast move from a low to and above a prior high. Not the ideal entry. It can also occur after a rally that is followed by a period of consolidation. Consolidations can happen in various forms, a base being the most widely used. Ideally, a tight base or a tightening in the last few bars occurs just prior to the breakout. Let's review some examples. In the above example, prices began to move up after a retest of the prior low and rallied all the way back up to the prior resistance area. The second to last candle that formed was a Topping Tail (TT) that signaled that sellers are focused on the prior high area - resistance. However, the next candle ignored the TT or in other words, buyers continued to step up regardless of the prior resistance area; a bullish sign. Prices could continue higher above the prior high and the supply of shares there. But without a small period of consolidation that would display buyers "absorbing" that supply, the likelihood of a retracement into the prior rally is high. Absorbing that supply reduces the possibility of a breakout failure. Some buyers that own shares from lower prices are going to sell at resistance after such a move. If prices move above the prior high without a stalling first, many more are going to cash in on the quick profit. Buying a breakout after a straight through rally above the prior high from a low can be done, but not without a stop-loss based on the move. The size of the stop and share-size must take into consideration the retracement that is more than likely to occur. In the above example, Prices rallied from a base after the signal bar formed. The initial move stalled for moment (shaded area) where the opens and closes of the three candles are overlapping. Pristine students know these overlapping opens and closes are a base on a lower time frame. This is where buyers will step up on a pullback, should that occur. That pullback did not occur here, rather buyers continued to step up above that level and form a new pivot low; a bullish sign. That low provided a new support reference point that was taken advantage of on the rested. The last bar engulfed the most recent candles, which is bullish and tells us that buyers are anticipating a breakout above the recent resistance. Large bullish engulfing bars like the one seen are typically followed by a smaller candle or candles. Typically does mean always, especially with this pattern since the bullish bar came after a period of consolidation and retest. In this example, prices broke out of a whippy consolidation and while there were clues that shares were being accumulated, there was no clear signal bar of the breakout occurring at that moment as there was in the prior example. This long period of uncertainty was followed by two Bullish Wide Range Bars (+WRB) signaled huge increase in buyers and higher prices. Fast, igniting moves like this create a void of price support below. However, this pattern (two +WRBs out of a consolidation) is less likely to correct by pulling back since the move began from a consolidation. It is also less likely for prices to base or consolidate for a long time for the same reason. The last candle in the pattern actually signals the low of the correction after the +WRBs and higher prices - a breakout - will follow soon. I have shown you the same stock Boeing (BA) in different time frames and explained how to interpret the price movement in those time frames. Traders using these time frames or others could potentially enter BA on signals that come together at the same time. This is what makes for explosive moves when they happen. However, each could also enter at different times depending how the patterns developed from here. For example, the traders using the weekly time frame could enter on the next candle's move above the high, which could happen immediately. To the trader on the hourly time frame that entry would not be ideal since there is no clear reference support level to use as stop-loss because of the straight up momentum move. Also, such a move would certainly setup other new entry points in the hourly time frame or other lower ones. All traders can have the same bias, but entering at very different times. All entries can be right for that trader in their time frame of choice with confirming price patterns. Pristine Tip: Intra-day traders use signals from higher time frames for a bias and then trade signals (price patterns) in a lower time frame in alignment with that bias. Greg Capra President & CEO Pristine Capital Holdings, Inc
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In uptrending markets, most of our swing trade setups are stocks and ETFs (with relative strength) that are breaking out above bases of consolidation. We also buy pullbacks of uptrending equities when they retrace to near-term support levels. However, another bullish chart formation many technical traders profit from is the “cup and handle” pattern. In this article, we use current annotated charts of United States Natural Gas Fund ($UNG), a commodity ETF that roughly tracks the price of spot natural gas futures, to show you how to trade the cup and handle chart pattern. Let’s begin by looking at the weekly chart timeframe of $UNG below: Notice that the left side of the pattern begins in November 2012, after a 60% rally off the lows. This is positive because proper cup and handle patterns should not form at or near 52-week lows; rather, there should already be an uptrend in place for at least several months in order for a correct cup and handle to develop. The selloff in December 2012, as well as the bottoming action in January and February of this year, combine to form the left side and bottom of the “cup.” The right side of the cup was formed when $UNG broke out above major resistance of its 200-day moving average and rallied to the $22 area. Zooming in to the shorter-term daily chart interval, note the “handle” portion of the pattern that is currently developing: The handle typically requires at least a few weeks to properly develop (sometimes more). While forming, price action will typically slope lower. In the case of $UNG, even an “undercut” of the March 25 low and 20-day exponential moving average would be acceptable. However, the price needs to hold above the $20 level during any pullback. Otherwise, a breakdown below that important support level could signal the pattern needs a few more months to work itself out. If buying $UNG, it is important for traders to be aware of possible contango issues that could result in an underperformance of the ETF, relative to the actual spot natural gas futures contracts. Nevertheless, contango is typically not a big deal if exclusively swing trading the momentum of $UNG over shorter-term holding periods (less than about 4 weeks). Conversely, the negative effects of contango become much more apparent over long-term “buy and hold” investing timeframes. For our rule-based ETF and stock swing trading system, the technical chart pattern of $UNG is not yet actionable. Still, the annotated charts above clearly explain the specific technical criteria we seek when trading the “cup and handle” chart pattern. As always, we will promptly alert newsletter subscribers with our preset entry, stop, and target prices for this swing trade setup when/if it provides us with an ideal, low-risk buy entry point in the coming days.
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Good Morning All: As traders enter the arena, they are always full of questions. That is a good thing. As they progress, traders have even more questions. When they start to get good, they have even more questions. The trader always feels that they have good questions, and that their questions are also unique, things that only they would think of after the long journey they have been on. While it is true that all these questions are 'good', they are far from unique. As a matter of fact, it seems that we all end up on almost the same exact path, running into the same questions, in search of the same answerers. For a long time I have been known to say, "I have not heard an original question in years". I say it because it is true. We all go through the same process, which brings about the same questions. There was an exception once. A few years back, someone asked a question I actually had not heard before, and truthfully, have not heard since. Someone very simply asked, "How do you know when it is time to quit?" When to Quit Believe it not, this caught me by surprise. I am not use to 'new' questions. However, just as surprisingly, an answer came out of my mouth instantly, and without even thinking about it. I said, "When you can no longer do what it is that you know you need to do". Surprising answer? It actually is the perfect answer. When a new trader starts out trading, they usually try to begin with no education or with very little education. If this is the case, struggle will be expected and be the norm. The answer at this point is not to quit, but rather to get a quality education. At the next phase, traders take all this valuable information, and while they feel great about it, they often do not use it well. They do not have a plan to assimilate the information, so it is used inconsistently or not at all. They usually do not even know they are doing this, they 'think' they are doing things by the book. The answer at this point is not to quit, but rather to develop and use a trading plan. At the next phase, traders write a plan, but there are several problems. The plan may be just words on a paper done just to accomplish this step, but have little real meaning. Or it may have meaning to the trader, but has never been tested so may actually be an ineffective plan. Or, the trader may have a good plan, but is not following it. Traders rarely follow their plan, and rarely realize that they are not following it. The answer at this point is to check your plan, and follow up on your actions to see if you are following your plan. If the plan is not effective, change it and/or seek help to make it more effective. Paul Lange Vice President of Services Pristine Capital Holdings, Inc.
