Technical Analysis

What Major Stock Market Tops Look Like

Stock Market: Markets Don’t Peak Quietly   Over the past few weeks in my newsletter, “On The Mark,” I discussed some things that generally occur at major stock market tops. Here is a brief synopsis. Major stock market tops are generally accompanied by lengthy divergences with respect to market internals and longer-term…

How To Use The Heikin Ashi Candlestick For Better Trading

Heikin Ashi Candlestick:  This Unknown Candlestick is Highly Valuable to Short-Term Traders One of the most popular chart types among traders is the Japanese Candlestick. But there is a lesser-known candlestick that can dramatically benefit your trading. The Heikin Ashi Candlestick. So, What’s the Difference? A traditional candlestick chart plots…

How To Fade The NYSE Tick When Trading E-Mini S&P 500

As short-term active traders, we want to enter and exit according to the most relevant information. Earnings and quarterly projects just don’t give us the signals we need to get in and out of the markets with precision. That being said, even most traditional “indicators” like stochastic and MACD lag…

Using The ATR Indicator For Smoother Sailing

The market loves a good nautical analogy. And right now, no term sums it up better than “chop.” Defined as “small, steep disorderly waves at rapid intervals”, equity indexes continue to seek direction after the August pullback. One day we’re soaring on the news of a possible rate hike, the…

Why Backtests Are Important For Traders To Understand

Backtests are an important price pattern for active investors to understand. Today I want to highlight a couple of recent trading backtests that failed and why they were important to risk management and understanding market behavior. So What Is A Backtest? A few years ago, I wrote a post on trading backtests…

Why Investors Should Be Careful Using Market Divergence Signals

Nearly all technical analysts of stocks and other securities make use of technical indicators to help them make trading and investing decisions. Technical indicators are created by applying some mathematical calculation or function to the price and volume data of an underlying security. Technical analysts frequently compare the behavior and…

Traders: Get An Edge By Thinking In Trading Categories

Wyckoff divided the market into an idealized cycle of accumulation, mark-up, distribution, and markdown. Though it can be difficult to apply this model in actual trading, it has many important lessons and can shape the way we think about market action. From a practical perspective it lays the foundation for…

10 Great Technical Trading Rules

Only price pays. In trading, emotions and egos are expensive collaborators. Our goal as traders is to capture price moves inside our time frame, while limiting our drawdowns in capital. The longer I have traded, the more I have become an advocate of price action. Moving away from the perils…