How to Really Read Chart Patterns

Last week, I wrote about how CNBC’s guests love to talk about divergences. This week, I want to look into another one of their favorite talking points – chart patterns. After this article I will move on from my critique of CNBC for at least a while. You’ve probably seen guests explain how a head and shoulders pattern or falling wedge is forming and state that this has predictable implications for the stock market. These patterns do exist and are widely followed, but they are generally subjective. I generally prefer objective analysis which is based on numbers and formulas that can ...
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You Could “Sell in May and Go Away” or You Could Use This Time-Tested, Market-Beating Strategy

One of the most popular sayings on Wall Street is “sell in May and go away” because, proponents argue, you could achieve 100% of the market gains and avoid the biggest risks. This was certainly true in years like 1929, 1987 and 2008 when market crashes in the fall led to large losses. But is it always a good idea to sell in May? Rather than looking at a few years when the strategy worked, let’s put the idea to a test using a longer history. We can test the idea using the Dow Jones Industrial Average from January 1900 through ...
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Putting Divergences to the Test

Divergences are everywhere if you listen to the analysts on CNBC. There’s almost always a chart that shows two lines moving in different directions and viewers are told this is important. Because it’s CNBC, it seems that most of these divergences are bearish, but that might be because it seems most of the analysts on CNBC are bearish. Divergences are an important topic in technical analysis but the question that hasn’t ever really been answered, until now, is whether or not divergences are useful. Before addressing whether or not divergences are useful, we should be clear about what a divergence ...
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How To Use The World’s Most Accurate Indicator

How does it feel be wealthy?  While you may just be average or even on a lower rung of the economic ladder when compared to your neighbors, truth is, you are wealthy. In fact, the typical person in the bottom 5% of the U.S. income distribution curve is still wealthier than 68% of the world’s population, per the New York Times.  Think about that for a minute! I can hear many you asking what this has to do with the topic of the article? It drives home the point that everything is relative.  This means that nearly everything in life can only be ...
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Don’t Miss The Largest Uptrend Of 2016

Investors can easily become stuck in a rut.  A rut means doing the same thing over and over again despite the results.  Stock investors, for example, often just trade the sector or niche that they always have.  It doesn’t matter if there is another market sector that has set up to create outsized profits or not, they just keep on doing the same thing over and over again. No place is this “investing rut” more evident than stock investors who refuse to look outsized of their home country for profitable stock investments.  There is a tremendous number of investors stuck in ...
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Here Are 4 Candlesticks You Need To Know

Let me let you in on a secret.  There is a key to long-term investing success.  It is nothing complicated and is actually quite simple.  In fact, it is so simple that many investors disregard or ignore it entirely The  key  is to be able to consistently determine the trend of the stock and when that trend may change.  In other words, knowing what direction the stock is moving in and when that direction will likely change is all you need to know to be a successful investor! I know this simple secret sounds very easy and some of you may be ...
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5 Secure Stocks For The Tough Times Ahead

Many long-term stock market investors are afraid right now, who's to blame them? We are entering a very contentious election summer and the globe seems to be sitting on a powder keg. News of likely “Trump Riots”, Russian planes buzzing U.S. warships, and a host of other tensions have investors extremely nervous about the future. Time has confirmed that the best way to deal with uncertainty is to get back to the basics when it comes to the stock market.  Buying proven, long term, steady dividend stocks is one tactic that has been proven to work overtime no matter what happens in the ...
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Everything You Need To Know About Stop Loss Orders

I have a major complaint with most trading and investing education services.  My issue extends beyond just online courses and web sites, it goes deep into the very core of how stock market investing is presented by the so-called experts. My grievance can spell the difference between profits and losses, not to mention why some are successful in the stock market while the vast majority simply break even or lose over the long term. The complaint focuses on the fact that very little education or advice revolves around the most critical aspect of investing.  In fact, without this aspect, it would not ...
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