One of the most important signals driving today’s market is one you may not be familiar with. Most traders begin their technical trading with daily charts. Then they branch off into intraday or weekly, maybe even monthly charts. One that’s not so often discussed is a 3 day chart. 3 is a magic number for … Read more
One topic that’s seen a fair amount of conversation here lately is how long you should hold swing trades. By definition, a swing trade is anything held at least overnight, but there’s a big difference in holding a position for a day vs. holding for 3 months. Ultimately the correct duration has several variables, but … Read more
As we wrap up October and roll into November there’s one thing that always comes to mind for me – McDonald’s. Wow. McDonald’s you say? Thrilling. Are you there for the burgers or the milkshakes? Honestly neither and I’m not here to have a discussion on the food. The reason McDonald’s comes up for me … Read more
One thing traders tend to think about too late in their pilgrimage to success is the list of symbols, or tickers they’re going to trade. I don’t think you should confine yourself to just stocks, so I’m being broad with the title of this, but you should really consider the products you’re going to trade … Read more
Wednesday’s session wasn’t for the faint of heart. The Dow Jones Industrial Average fell 800 points from the previous day’s close, and as financial media was quick to point out, the largest loss in 2019. While that is a noteworthy statistic the index is no stranger to significant declines. In December, prices fell more than … Read more
TSLA has been on the run the past several weeks with shares gaining 10% in the last 5 trading days and 40% from the June 3rd lows. We’ve been able to participate in some of this bullish momentum using one of my favorite methods of technical analysis, Symmetry. In this case, Symmetry in Price. Symmetry … Read more
If you took the average human, let’s say 6’ feet, or 72 inches tall, and the top of the head was the high where we began our retracement and the lows (or zero) were his feet, then the .618 retracement would be “about” where you’d find the belly button. Think of it as more of an art than a science, and of course it does differ but I’ve found it to be generally true. More importantly I’ve found it helps me remember a key retracement in the analysis of swings in the market.
It’s been three weeks in a row now, with the exception of the last week in September when I spent some time with Carolyn, that I’ve made my way out to one of the local extensions of the San Gabriel river. This particular fork offers a man-made dam with a gentle waterfall that keeps things … Read more
As we head toward Friday’s monthly expiration, I’ve watched, read, and discussed more opinions of the market than I care to rehash. To some degree I think that’s because we’re trading at such an extended range and “reversion to the mean” traders continue to argue a pullback while those that are riding the trend continue … Read more
Symmetry is one of the most helpful concepts I’ve found in trading. As any student of the markets will tell you, “we’re trying to make predictions on the future based off analysis of the past”. Another way of saying it might be “If it’s done this before, maybe it has a chance of doing it … Read more