When I first started off trading, I had my doubts about whether the concept of support (and resistance) was actually for real. The chartS below are some fine examples that demonstrate the power of the concept. Support means that which resists falling through the floor. It’s just like a floor actually. Floors do break on occasion depending on the integrity of their structure and the amount of pressure put on them. So too it happensRead More
The perspective on AUDNZD below, gives a picture of a trend breakout to the upside on daily chart. Spikes in or through the slow EMAs (in red) have been rejected. The screenshot below speculates on what may happen. The SYP applies.
The Guppy system of analysis is one of the most logical and transparent that I’ve come across. The perspective on EURUSD below, gives a picture of a trend breakout to the downside. Spikes in or through the slow EMAs (in red) have been rejected. See two snapshots below. The screenshot below speculates on what may happen. The SYP applies.What happened next a few hours later:
The Guppy system of analysis is one of the most logical and transparent that I’ve come across. The perspective on COSTCO below, gives a picture of a trend breakout to the downside, with a recent spike on the daily chart. The screenshot below speculates on what may happen.
The Guppy system uses a concept called the Count Back Line (CBL), in order to find a reasonable stop-loss when deciding to enter a trade. A word of caution: the CBL only assists in certain ways below. Selecting a trade under the Guppy system involves SIX tests of which CBL is just one part. Those tests will be outlined In another post. Simply this is about counting back three candles from the apparent break inRead More
The following chart shows an interesting setup approaching tomorrow (25th June 2015) for Micron’s earnings release (ER). This is not a complete analysis and anybody making a decision to bet on this, going long or short with real money. does so entirely at their own risk. Ignore most of the wavy lines. The important things are price movements and contrasting the current situation with the historical. Whilst a majority of analysts have high bullish expectationsRead More
When you say ‘Guppy’, most people think of the fish. So, I’ve put up an image of the fish – but this has more to do with ‘fishing’ than with fish. Very strange indeed. I have to admit I saw his system many months ago and at that time when I saw ‘Guppy trading’, I simply thought it was some nonsense about some fish and ignored it. Oh well – that’s bad. I should haveRead More
The gap strategy is about profiting from panic in the markets. It takes some careful study. It can work on any instrument representing major indices (eg GER30, US30) At the outset I should say that this is one strategy that should be practised carefully on demo accounts repeatedly to see what happens. For sure you will lose many times – and keep in mind that losing is about 60% of this business – that’s theRead More
The following two charts show some interesting areas of resistance. I’ve already shorted these pairs. This does not mean that anyone should do similar. Optimal entry positions are very time specific – ever swung at and missed a ball when playing tennis, or shuttlecock at badminton? It’s that sort of thing. EURUSD has no one correct trendline. Having broken from the trendline shown (which I think is reasonable) and shot above, price has come intoRead More
This is not about your anatomy! Finding the bottom of an instrument (in the market) is not as easy as most might expect. The bottom is not a clearly defined point either. It’s often a band or range of price – as price varies around the so-called bottom. There may be no one bottom. A bottom today is not the same as one two months from now. So, in effect one is looking for aRead More