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 […]

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 […]

Candlestick patterns may have some odd names. Abandoned baby bottom, three black crows, dark cloud cover, for example. But these are some of the most powerful tools you can add to your strategy, including these three. Candlestick Pattern No. 1 – The Doji Cross Doji crosses are a sign of indecision of bulls and bears. […]

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 […]

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 […]

If you pull a rubber band too far, too fast, what happens? It snaps back, right?  The same thing happens with stocks, indexes, and currencies.  If they’re pulled too far in one direction, eventually they’ll snap back and revert to back to the mean.  In fact, we see it happen all the time. To spot […]

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 […]

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, […]