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 […]

Using the Chaikin Oscillator to Stay on the Right Side of the Market

Any time you use technical analysis, confirmation is essential. If you’re not willing to confirm, you’re doing yourself a great disservice. In fact, at no time will I ever just use Bollinger Bands (2,20), MACD, relative strength, or Williams’ R% alone. That’s an amateur, foolish move. If Williams’ %R is telling me something, yet four other […]

How to Trade Parabolic Stop and Reverse (SAR)

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. What we simply want to do is buy an asset when the dots move below the price, and sell or short-sell when the […]

How Using the Money Flow Index (MFI) Can Give You a Trading Edge

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, […]

How to Spot Potential Breakout Opportunities

Great traders will always go where the action is. Volatility, momentum, new highs, and liquidity are some of the key traits they’ll look for. Other times, there’s a fundamental reason for the break, including news, or event that’ll draw even more traders in. Just what is a breakout, though? A breakout occurs when a price clears […]

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How to Identify Flag and Pennant Setups

April 7, 2022

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 […]
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