Trading Tips

Have you ever spotted a hot stock in a bullish trend and jumped in after a big breakout only to see the stock immediately reverse to the downside and lose you some serious money?
If not, maybe you’ve been lucky, because this has happened to the best of us. But what if I told you there [...]

A couple of weeks ago we looked at the Force Index, which helped you determine the strength of a stock’s current trend. But what if you’re unable to determine if a stock is TRENDING at all? Then Force Index is of no use to you.
This is where ADX — Average Directional Index — comes in. [...]

It’s pretty easy to tell which direction a stock is trending at any given time. In fact, if this were the only key to making money in the stock market, anybody could do it.
The problem is, you don’t necessarily know if the stock’s CURRENT trend is going to continue, or if it might reverse [...]

Type “Island bottom” into your favorite search engine, and chances are you’ll get something other than the chart pattern that’s the subject of this episode. Island bottoms — along with island tops — are rare… But when you are able to spot them, they have an amazing level of accuracy.
In a recent study, the island [...]

Some chart-pattern formations are easy to mistake for one another, and this can often produce disastrous consequences. For example, a triple top could be mistaken for a double top, leading you to get in at the wrong time. Even worse, you could think a stock is in a double- or triple-top formation when it’s actually [...]

In Episode 37, we looked at the concept of Accumulation/Distribution. Now that you’ve had time to digest those lessons, we’re ready to take things to the next level with Chaikin Money Flow (CMF).
What is Chaikin Money Flow? It’s a statistic invented by the legendary Mark Chaikin. The formula takes the cumulative total of x days [...]

As a student of technical analysis, you know that no chart pattern is foolproof. Even if you identify the formation and execute the trade 100% according to the rules, studies show that proper technical analysis is right about 55-60% of the time — and that’s fine! You don’t need to be right every time; you [...]

“Market noise” refers to price and volume fluctuations that are NOT reflective of true market sentiment. These fluctuations temporarily disrupt a chart pattern and can confuse even the most savvy traders.
But what if you had a secret tool that would screen out “market noise” and let you differentiate between “noise” and TRUE market sentiment? [...]

Some patterns are mirror images of others: The double top, for example, is just like the double bottom — only in reverse. A double top is bearish, while a double bottom is bullish. But if you understand how double tops work, all you have to do is apply the same principles — in reverse — [...]

Episode 38 - The Inverted Hammer
Download the slides for “The Inverted Hammer”