Bollinger Bands and Keltner Channels: Similarities and Differences

Imagine 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 […]

Why it’s [Almost] Always Best to Invest in the Dogs of the Dow

One of the greatest investment opportunities are the Dogs of the Dow. And while some analysts may write off the Dogs of the Dow theory as antiquated, it’s just not true at all.  In 2011, there were up 16.3%. In 2012, they jumped 9.9%. In 2013, they returned 34.9%. In 2014, they returned nearly 11%. In […]

How to Pick Winning Stocks

Pick Winning Stocks With Simple Stock Market Analysis Tools Stock traders are always on the lookout for ways to improve their trading. There are hundreds of different Stock Market Analysis Tools to choose from when analyzing stocks and the stock market in general. Each week I get emails from around the world advertising new and […]

Bollinger Bands Strategy – How To Trade The Squeeze

The Squeeze Is One Bollinger Bands Strategy You Need To Know Today I’m going to discuss a great Bollinger Bands Strategy. Over the years I’ve seen many trading strategies come and go. What typically happens is a trading strategy works well on specific market conditions and becomes very popular. Once the market conditions change, the […]

How to Identify Flag and Pennant Setups

Once you begin to understand technical analysis, you’re literally looking at a consolidated view of the very forces of supply and demand – the two key forces that drive stocks. We’ve already discussed some of the most powerful and most used patterns, like Bollinger Bands, Fibonacci retracements, relative strength, head and shoulder patterns, breakouts, and […]

Technical Analysis: RSI Can Lead to 80% Success

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. Of the dozens of indicators on the […]

What to Do When Markets Take a Deep Dive

The sky is falling…. The sky is falling… Quick everyone, sell everything. Sell first, ask questions later. That sounds about right. In early 2020, that’s the panic that gripped the Street. The Dow Jones fell over 10,000 points, and the other indices followed suit. All as Covid-19 fears dominated the news globally, and volatility reared its ugly […]

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 […]

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Bollinger Bands and Keltner Channels: Similarities and Differences

December 5, 2021

Imagine 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 […]
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