Woody Dorsey just sent out an essay on some of the patterns he has developed over his 40 years of trading. It is very interesting and will enlighten you on some of the terminology used here. The entire piece is in the link below. What is a Black Hole? A Black Hole is a defined time period when extreme market events may take place in a very short period of...
-Today we are going to show Vix Index on daily chat compared to SP500 (orange line). The first thing we noticed is the Wedge formations on the chart. -As Vix starts going down, SP500 keeps rising, the concept is that people trust on the strength of the bullish trend, on this process we can see the Wedge patterns on VIX, and bullish trends on SP500. -To see...
What a day - almost 1am and I'm finally done chart scraping. This is certainly a passion - hope you guys enjoy it. Great trading week - really only made two trades all week. One non-eventful & the other was an entry on the 28th at 2800 with an exit today at 2827. For a gain of +12%. This was traded with an entry on this inverse head & shoulders. When I trade...
I've been warning my dear followers and cryptocurrency lovers about the S&P 500 Index crash for a long time. For conventional minds, it is really hard to grasp the fact that the SPX will crash massively and become ugly due to all the lies and hype spread through the conventional media news systems, but charts do not lie. Reading charts is like looking at a...
Notice the downward trend in the US10Y since the 80's, while government, corporate and consumer debt has exploded to all time highs. The achilles heel of massive debt levels are high interest rates, which end up causing slowed growth and economic contraction. With ever higher levels of debt, the level of interest required to put the economy in pain falls over time...
TECHNICALS - Gann fans and Fib retracements show us going on one more run. On an Eliot count, we can still be working on the 5th wave up. And take a closer look at the top 10 largest stocks... they all have room to go on one more run. Also, we didn't get a sharp dip from the 618 ($2720), suggesting we have room to keep going. Stoch is overbought, RSI is...
The price action we've seen since October looks a lot like the tech bubble of Y2K. The combination of mean aversion and valuation levels like this have only occurred two times in the past(1929,2000). Corporate buy backs and excess leverage(everywhere) where also traits of these historical crashes. Using the first tech bubble as a model, I've projected what...
As all can see that 10 yr yield broke out of the long term trend line, and it has completed the double top. My hunch is it will come back to retest the trendline around 2%. That is the flight to safety. We can see that in 2008 what happened when 10 yr yield sharply dropped, equities dropped more than 30% in a short period of time. All in all, short bond is a...
This is known as ABC pattern: The distance between A-B was roughly $20 Then you subtract that 20 from B, and that would give you your next entry AKA 260. Therefore, at 260 was a technical cover and low risk long entry. Hence, we have this nice little rally, since this downward motion was strong and aggressive. However, this also means that whatever we have...
This is the first update for the video series here to grow the paper portfolio on TradingView in an attempt to beat the 'S&P index real time. Normally, I will compare the portfolio to the market, talk about weak vs strong stocks and sectors & go into what I will be changing moving forward. The portfolio has been able to get ahead of the general market and below...
This is the introduction to the video series here to grow the paper portfolio on TradingView in an attempt to beat the S&P500 in real time. The reasoning behind this is that it is usually difficult to start trading stocks especially because you don't know what you don't know. It generally takes a couple of years for a trader to make a whole bunch of mistakes,...
Introduction to Trader Psychology There is evidence of technical analysis dating back to the 17th century. The candlestick charts most of use everyday to trade were created in the 18th century by a Japanese rice trader. By this point one would think technical analysis should result in more profitable traders and lead atleast a quarter of price technicians to a...
You have SPY Trending down today CCI and Candles are red pink and purple buy the 1st or 2nd pullback where CCI goes near ZERO line on CCI I use 5min charts minium Indicator link: Color of your candles matches your CCI with Histogram indicator and trend line . CCI EMA or SMA based option, traditional or modern formula calculation options ect. Can change Length,...
This is a quick example of how I use the 8 EMA and the Wavetrend Oscillator together. Please remember that reading the candles is 99% of it, and everything else is just lagniappe. Happy Trading, Charles
Understanding and having a basic expectation of how the market tends to move is important not only for traders, but for investors too. If you get in too early, you suffer unnecessary drawdowns. If you get in too late, you will either suffer losses, or miss the train. In trading and investing, there is more than just entry and exit.
"What just happened?" Is the most common question people is asking their brokers. The answer: Nobody knows exactly. The market just crashed like in 2015, 2011 and 2010. Here is a comparison of the latest 3 flash-crashes: 18 August 2015 1 August 2011 6 May 2010 Even while past data suggests a price bounce, bear in mind that the sell-off could...
This is the spread between the S&P 500 and the MSCI Emerging Market Index. Notice how the trend has switched in favour of being overweight EM, underweight US. The change occurred as inflation and GDP were upgraded in EM countries, causing the USD to fall against other currencies in 2017, as capital begins to flow out of the US in search of higher yields. The...
Each time there is a panic selloff and recovery, the buyers who stepped up to the plate and accumulated shares at a discount show that they are in control of the market. What happens when VIX or VXN spikes when the market falls? Well, sellers of options demand higher prices to compensate for higher risk or higher costs of taking a trade. Also, buyers of options...