**Publishing again because it got taken down by Mods**
While this has pulled back recently - it reminds me of a lesson from the great trader William O'Neil and his lesson for the "WALL OF BLUE" 🟦
Not many know this rule, so hope you like it!
Wall of blue rule states that when you have 4+ weeks of blue volume bars (blue volume bars = volume when the week close...
These are quite useful to follow.
We have 4 major ways to track Crypto Market Caps
$TOTAL = Crypto Market Cap
$TOTAL2 = Crypto Market Cap - BTC
$TOTLA3 = Crypto Market Cap - BTC - ETH
$TOTALDEFI = Crypto Market Cap for DeFi
Clearly all are below the purple line (200D SMA) and clearly in Stage 4 downtrend (as per Stage Analysis criteria).
This mean "no-touch"...
The market is a forward looking mechanism. I have discussed before that the current correction can play out like 1994 bear market. For this reason I look at this as a historical precedent.
When the market sees pause it anticipates a decline, this pushes stock prices up, at least in practice :)
A DEEP CORRECTION = a correction more than 25-30% within the consolidation period.
Sometimes a stock might correct more especially in a volatile bear market. Deeper correction are more risky as they are more failure prone - use these ideas to put probabilities on your side.
The checklist
1. You want as much time away from that correction as possible (at least 1...
What is the Cup and Handle Pattern?
One of the most important chart patterns in the stock market is the Cup and Handle Pattern, invented by William O’Neill. Sometimes you might see it abbreviated as CWH. It also holds the crowd proclaimed title as one of the most profitable and reliable breakout patterns. The Cup and Handle Pattern forms as a bullish...
Why Stage Analysis
Stage Analysis is the very first thing you need to get right or everything else will be unnecessary, according to Mark Minervini.
Based on his study 98% of all big winners, dating back from 1800s to current day have been in confirmed Stage 2 BEFORE they made their big move! This makes Stage Analysis a foundational knowledge for anyone who...
Averaging down is rejected by all big Market Wizards.
The problem is that the stock can always go another -90% down.
The example of SKLZ shows that after 19 consecutive times the stock decreased -20%, it no where near the average dollar price, if you buy same amount after each 20% decline.
In fact, it has to move +300% to get to break-even. How many of your stocks...
Why look at weekly charts?
We look at weekly charts because it reduces volatility when scanning for stocks. This is especially important during bear markets when the stocks are more volatile.
What do we want to see?
Base depth no more than 30%
Close on the weekly bars near the highs
Closes are tight (about 1-1.5% of each other)
Peak closes on...
