Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
$NWMT BarChart Trader's Cheat Sheet
http://www.barchart.com/cheatsheet.php?sym=NWMT
The Elder Impulse System is designed to catch relatively short price moves. Elder notes the following: "The Impulse System encourages you to enter cautiously but exit fast. This is the professional approach to trading, the total opposite of the amateur's style. Beginners jump into trades without thinking too much and take forever to get out, hoping and waiting for the market to turn their way."
In addition to trading setups, the Elder Impulse System can be used to prevent bad trades by consulting it before entering a trade. Use the Impulse System to confirm bullish or bearish setups. Traders can ignore bullish setups when the Impulse System is not in full-blown bull mode (green bars) and ignore bearish signals when the system is not in full-blown bear mode (red bars). The impulse system can also be used to anticipate patterns or reversals. If you think a bull flag is taking shape or support from a Fibonacci retracement is near, the Impulse System can be used to identify a short-term reversal for confirmation.
Daily Candlestick Chart for IXEH
[img]stockcharts.com/c-sc/sc?s=IXEH
Other people buy stocks based on rumors that the price will rise/fall sharply soon.
Many experienced traders watch financial news on TV, read the relevant newspaper stories, and investigate companies that are in the news. They also use "technical indicators," which are numbers or graphs which may help indicate whether a stock will rise, fall, or stay the same.
A few people will randomly pick stock symbols by throwing a dart at a newspaper, for instance.
EquiVolume boxes put price action and volume together for easy visual analysis. EquiVolume boxes plot the high-low range for length and volume for width. Thin boxes show relatively low volume, while wide boxes show relatively high volume. Square or wide boxes reflect high volume with relatively little price movement. Even with this added volume dimension, chartists can easily spot traditional patterns, support/resistance breaks and reversals.
Daily Candlestick Chart for AXST
[img]stockcharts.com/c-sc/sc?s=AXST
Bailout: A bailout is a financial term referring to an extraordinary act of lending, or outright giving, capital to an entity (a company, bank, individual, etc.) that is in danger of failure due to bankruptcy or insolvency. A bailout can also be given to a failing entity to allow it to exit gracefully without leading to a contagion.
Top-Down Technical Analysis
For each segment (market, sector and stock), an investor would analyze long-term and short-term charts to find those that meet specific criteria. Analysis will first consider the market in general, perhaps the S
Economic Forecast
First and foremost in a top-down approach would be an overall evaluation of the general economy. The economy is like the tide and the various industry groups and individual companies are like boats. When the economy expands, most industry groups and companies benefit and grow. When the economy declines, most sectors and companies usually suffer. Many economists link economic expansion and contraction to the level of interest rates. Interest rates are seen as a leading indicator for the stock market as well. Below is a chart of the S
Daily Candlestick Chart for GSTV
[img]stockcharts.com/c-sc/sc?s=GSTV
In this example of the NASDAQ 100 Index $NDX), the stock broke resistance at 935 in May-97 and traded just above this resistance level for over a month. The ability to remain above resistance established 935 as a new support level. The stock subsequently rose to 1150, but then fell back to test support at 935. After the second test of support at 935, this level is well established.
All Gaps will be Filled
There is an old saying that the market abhors a vacuum and all gaps will be filled. While this may have some merit for common and exhaustion gaps, holding positions waiting for breakout or runaway gaps to be filled can be devastating to your portfolio. Likewise, waiting to get on-board a trend by waiting for prices to fill a gap can cause you to miss the big move. Gaps are a significant technical development in price action and chart analysis, and should not be ignored. Japanese candlestick analysis is filled with patterns that rely on gaps to fulfill their objectives.
Daily Candlestick Chart for WNYN
[img]stockcharts.com/c-sc/sc?s=WNYN
Banking Institutions: Banking institutions cater to both the majority of commercial turnover and large amounts of speculative trading every day. The set of forex products offered by various banking institutions vary depending on their size. Some banks offer only spot exchange and currency forwards while the larger institutions offer currency options, currency swaps, currency futures, and option-dated currency forwards.
A large bank could trade billions of dollars daily, much of which is undertaken on behalf of customers, but some is conducted by proprietary desks, in other words: trading for the bank's own account.
A study by Greenwich Associates reveals that the top foreign exchange dealers are dominated by banking institutions such as Deutsche Bank, UBS, Citigroup, Barclays, and the Royal Bank of Scotland. The exact percentage of the daily global forex turnover accountable to banking institutions is not known but Deutsche Bank and UBS each comprise more than 10% of the market share. What’s for certain is that a sizeable part of daily forex trading is concentrated among the world’s top 10 foreign exchange banks. Around 90% of all foreign currency transactions are done by banks, companies, and individual traders.
Daily Candlestick Chart for WIFT
[img]stockcharts.com/c-sc/sc?s=WIFT
$CDXC BarChart Trader's Cheat Sheet
http://www.barchart.com/cheatsheet.php?sym=CDXC
Daily Candlestick Chart for GSML
[img]stockcharts.com/c-sc/sc?s=GSML
Chart Patterns ~ An Oldie but Goodie
Much of our understanding of chart patterns can be attributed to the work of Richard Schabacker. His 1932 classic, Technical Analysis and Stock Market Profits, laid the foundations for modern pattern analysis. In Technical Analysis of Stock Trends (1948), Edwards and Magee credit Schabacker for most of the concepts put forth in the first part of their book. We would also like to acknowledge Messrs. Schabacker, Edwards and Magee, and John Murphy as the driving forces behind these articles and our understanding of chart patterns.
Pattern analysis may seem straightforward, but it is by no means an easy task. Schabacker states:
The science of chart reading, however, is not as easy as the mere memorizing of certain patterns and pictures and recalling what they generally forecast. Any general stock chart is a combination of countless different patterns and its accurate analysis depends upon constant study, long experience and knowledge of all the fine points, both technical and fundamental, and, above all, the ability to weigh opposing indications against each other, to appraise the entire picture in the light of its most minute and composite details as well as in the recognition of any certain and memorized formula.
Even though Schabacker refers to "the science of chart reading", technical analysis can at times be less science and more art. In addition, pattern recognition can be open to interpretation, which can be subject to personal biases. To defend against biases and confirm pattern interpretations, other aspects of technical analysis should be employed to verify or refute the conclusions drawn. While many patterns may seem similar in nature, no two patterns are exactly alike. False breakouts, bogus reads and exceptions to the rule are all part of the ongoing education.
Careful and constant study are required for successful chart analysis. On the AMZN chart above, the stock broke resistance from a head and shoulders reversal. While the trend is now bearish, analysis must continue to confirm the bearish trend.
Some analysts might have labeled the NVLS chart as a head and shoulders pattern with neckline support around 17.50. Whether or not this is robust remains open to debate. Even though the stock broke neckline support at 17.50, it repeatedly moved back above its support break. This refusal might have been taken as a sign of strength and justified a reassessment of the pattern.
What is Technical Analysis 2
Technical analysis is applicable to stocks, indices, commodities, futures or any tradable instrument where the price is influenced by the forces of supply and demand. Price refers to any combination of the open, high, low, or close for a given security over a specific time frame. The time frame can be based on intraday (1-minute, 5-minutes, 10-minutes, 15-minutes, 30-minutes or hourly), daily, weekly or monthly price data and last a few hours or many years. In addition, some technical analysts include volume or open interest figures with their study of price action.
Daily Candlestick Chart for GELYF
[img]stockcharts.com/c-sc/sc?s=GELYF
Strengths of Technical Analysis
Focus on Price
If the objective is to predict the future price, then it makes sense to focus on price movements. Price movements usually precede fundamental developments. By focusing on price action, technicians are automatically focusing on the future. The market is thought of as a leading indicator and generally leads the economy by 6 to 9 months. To keep pace with the market, it makes sense to look directly at the price movements. More often than not, change is a subtle beast. Even though the market is prone to sudden knee-jerk reactions, hints usually develop before significant moves. A technician will refer to periods of accumulation as evidence of an impending advance and periods of distribution as evidence of an impending decline.
Daily Candlestick Chart for ECRY
[img]stockcharts.com/c-sc/sc?s=ECRY
Introduction to Chart Patterns
There are hundreds of thousands of market participants buying and selling securities for a wide variety of reasons: hope of gain, fear of loss, tax consequences, short-covering, hedging, stop-loss triggers, price target triggers, fundamental analysis, technical analysis, broker recommendations and a few dozen more. Trying to figure out why participants are buying and selling can be a daunting process. Chart patterns put all buying and selling into perspective by consolidating the forces of supply and demand into a concise picture. As a complete pictorial record of all trading, chart patterns provide a framework to analyze the battle raging between bulls and bears. More importantly, chart patterns and technical analysis can help determine who is winning the battle, allowing traders and investors to position themselves accordingly.
In many ways, chart patterns are simply more complex versions of trend lines. It is important that you read and understand our articles on Support and Resistance as well as Trend Lines before you continue.
Chart pattern analysis can be used to make short-term or long-term forecasts. The data can be intraday, daily, weekly or monthly and the patterns can be as short as one day or as long as many years. Gaps and outside reversals may form in one trading session, while broadening tops and dormant bottoms may require many months to form.
Central Bank: Central banks play a key role in the currency markets because of their power over monetary policy. They have a direct influence over money supply, which in turn affects demand and price of the currency. Through the use of different policies, central banks can try to manipulate the markets so that they can keep their currency at specific levels. Some countries and their central banks try to peg their currency to that of another currency or basket of currencies (for example, China to the U.S.).
The central bank can participate in the forex market by buying and selling their currency at the spot market in order to keep it from changing too much. Another motivation for central banks is to keep the local currency at a specific price in order to make their local economy more attractive for international trade. If a country’s currency appreciates too quickly, it could actually make it less appealing to importers.
Remember that many transactions have to use the local currency. Thus, if currency that is needed rises too quickly, it effectively makes goods more expensive to foreigners, which in turn, hurts trade. To counter this, the central bank may intervene in the market by selling its currency and buying up other major currencies. This in effect, weakens the local currency so as to make it more appealing to foreign importers.
While the exact value of what percentage such central bank transactions take up isn’t known, take note that because these are the banks of national governments, such interventions can have a much larger impact on the market than any single commercial bank.
Daily Candlestick Chart for GOVX
[img]stockcharts.com/c-sc/sc?s=GOVX
$ENTB BarChart Trader's Cheat Sheet
http://www.barchart.com/cheatsheet.php?sym=ENTB
Double Bottom: A Double Bottom is a form of chart pattern used in technical analysis. This pattern is characterized by a distinct drop in price, followed by a slight reversal (or recovery) with a second drop occurring soon after to either the same or similar level as the first, before another, significant recovery so that the chart appears to take on the form of the letter 'W'.
The Double Bottom, along with its counterpart, the Double Top, is easily one of the most recognizable chart patterns. While both are reliable reversal patterns, highly indicative of chances in the market, the bullish Double Bottom reflects very strong levels of support and often indicates a strong change of trend.
The double low points are considered to be support levels, with the resistance level measured at the widest point of the 'W' formation. When the rise following the second low breaks the resistance point generally the rise will continue sharply, with these reversal trends garnering more reward following extended downtrends.
It is normally considered that the best entry point on a double bottom formation is around the secondary resistance level, which when broken tends to indicate a the confirmation of the price reversal.
$LIQT BarChart Trader's Cheat Sheet
http://www.barchart.com/cheatsheet.php?sym=LIQT
Daily Candlestick Chart for GRMC
[img]stockcharts.com/c-sc/sc?s=GRMC
Day Trading: Day trading with the foreign exchange market is in some ways vastly different to that in other markets, in addition to which, day trading in the currencies market does not suffer from the unpleasant connotation that may spring to mind when one thinks of such things with relation to the stock market.
That said, if you have previously traded in other markets, then many items styles utilized in forex, such as forwards, futures, options, spread betting, contracts for difference and also the spot market are very similar to those used in the equity markets, and often maintain a minimum trade sizes for the base currencies.
It is worth noting however that day trading, being a fast moving, highly challenging trading style may not be for everyone. Should decide that day trading is for you, then there are also many different styles and variations of day trading with the currency market that you may wish to sample before choosing the form that feels right for you, or maybe you will prefer to utilize a series of styles.
The best way to learn the day trading styles with regards to forex markets is the same as in learning and perfecting any other trading style, or indeed other skill; by practice.
Talking to you forex trading mentor and other experienced day traders to see what styles have worked best for them over the years, ask for any hints, tips and techniques that may be of benefit and try them out before making the definitive choice of which style will be right for you.
Daily Candlestick Chart for GPCM
[img]stockcharts.com/c-sc/sc?s=GPCM
Heikin-Ashi Doji and Spinning Tops
As with normal candlestick, Heikin-Ashi doji and spinning tops can be used to foreshadow reversals. A Heikin-Ashi doji or Heikin-Ashi spinning top looks just the same as a normal doji or spinning top. A doji is a small candlestick with an open and close that are virtually equal. There are small upper and lower shadows to denote little price movement.
Spinning tops have small bodies (open-close range) and long upper/lower shadows (high-low range). Despite a lot of movement from high to low, prices finish near their opening point for little change. This shows indecision that can foreshadow a reversal.
When using Heikin-Ashi Candlesticks, a doji or spinning top in a downtrend is not right away bullish. It just shows indecision within the downtrend. Indecision is the first step to changing direction. Confirmation of a directional change (trend reversal) is required though. Once chartists spot a doji or spinning top in a downtrend, it is time to set a resistance level upon which to base a trend reversal.
The example below shows Caterpillar (CAT) with a spinning top forming in late May (1). The trend is clearly down so a resistance level is set to define a reversal breakout (confirmation). CAT did break this resistance level a few days later, but the breakout failed. Not all signals are perfect. The downtrend extended and CAT then formed two doji in mid June. A resistance level was marked after the doji and CAT broke resistance to confirm a reversal.
Prices extended higher until the stock stalled around 110 in July. Two doji and an indecisive candlestick formed in mid July (3). Also notice that a clear support level was established. CAT broke support in late July to start a strong downtrend and confirm the trend reversal. A spinning top formed during this downtrend (4), but there was no upside follow through or reversal. Confirmation of a trend reversal is important.
What is a Margin Account?
A margin account allows you to quickly and easily borrow money from your brokerage to purchase additional shares. In other words, it provides leverage for your account. It also allows you to do short selling. Of course interest is charged interest on any borrowed money and the SEC has very strict regulations on these accounts.
Daily Candlestick Chart for SSBN
[img]stockcharts.com/c-sc/sc?s=SSBN
Spacing of Points
The lows used to form an uptrend line and the highs used to form a downtrend line should not be too far apart, or too close together. The most suitable distance apart will depend on the time frame, the degree of price movement, and personal preferences. If the lows (highs) are too close together, the validity of the reaction low (high) may be in question. If the lows are too far apart, the relationship between the two points could be suspect. An ideal trend line is made up of relatively evenly spaced lows (or highs). The trend line in the above MSFT example represents well-spaced low points.
On the Wal-Mart (WMT) example, the second high point appears to be too close to the first high point for a valid trend line; however, it would be feasible to draw a trend line beginning at point 2 and extending down to the February reaction high.
Followers
|
3289
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
2804248
|
Created
|
08/22/10
|
Type
|
Free
|
Moderator Nilbud | |||
Assistants mick ManicTrader PhotoChick Kirimi $Pistol Pete$ |
Investor Hub Alerts: Sign up for 'STOCKGOODIES PLAYS OF THE WEEK ' E-Mail List UPDATE; 5-1-22 courtesy of charting /\ wit tweezer top calls /\ Tony @Montana_Trades Really good study sheet on Candlestick Patterns [-chart]pbs.twimg.com/media/FRn8188XMAAdZvk?format=jpg&name=small[/chart]
02-07-2021
|
Posts Today
|
0
|
Posts (Total)
|
2804248
|
Posters
|
|
Moderator
|
|
Assistants
|
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |