Tag: patterns

 

The ABCD harmonic

The ABCD harmonic is one of the simplest, yet most fundamental and profitable patterns to trade (says Scott Carney). Carney’s criteria are freely available on various internet sources and on YouTube. Importantly, finding the pattern and ensuring it is accurate is only the first phase of any potential trade setup. There are several other steps to follow after the pattern is identified for deciding if to enter and pre-programming exit points. This is not aRead More

Automaticity

It’s an interesting word but not many know it’s full meaning. It isn’t about becoming an automaton. The Wikepedia definition of automaticity is, “The ability to do things without occupying the mind with the low-level details required, allowing it to become an automatic response pattern or habit. It is usually the result of learning, repetition, and practice.” By reading this post you’re doing ‘automaticity’. You no longer see individual letters. You no longer pronounce eachRead More

Introduction to Harmonic Trading

I’ve been studying harmonics now for the last 6 months or so. It’s not been an easy task. This introduction is a summary of what I have learned about how they may be used and some of the difficulties. Harmonic trading is about finding and exploiting certain patterns that are regularly seen in all kinds of trading situations, across almost all time frames. There is overwhelming statistical and experiential evidence for their better than chanceRead More

Interesting situation with ULTA

ULTA is a powerful stock – very similar to Disney. ULTA has been disrespecting Wall Street for some time and even recently. [Missed opportunity for a snipe in second pic below – learning from this. The first annotation shows that a snipe was possible. The difficulty was locating the opportunity. The second pic shows how it could have been done.] However, the bullishness on the stock could be coming to an end. The analysis belowRead More

What happened with Disney?

Disney was a learning lesson for me. I lost going long at the Earnings Release – limited of course by my stop-loss. This analysis is about learning lessons – and about a possible opportunity to go long again (subject as always to the SYP). In summary: 1. Disney being a strong performer had always jumped higher on a majority of Earnings Releases. 2. It was natural to go long again. 3. However, even as DisneyRead More

Earnings Release strategy update

This is the latest ER strategy update. As mentioned previously (here and here), I’m honing this as I discover more. The main modifications in this release are: That the Relative Strength Index should be carefully assessed. The FOA system – Find, Observe, Assess – makes it more structured. Of course there is never as clear a compartmentalisation of these when you’re working a live instrument. Numbers added in various parts, reference where I am inRead More

GBPMXN slaughter – power of the Relative Strength Index

The relative strength index (RSI) is an indicator used in what’s called ‘technical analysis’. As with most things you read it, you see it, you play with it, and you think you understand it. But for me  – as happened recently – the power of the concept suddenly came home in live trading. My eyes are now open to a new appreciation and understanding. This is not a tutorial on the RSI. This is notRead More

What about Fibonacci?

It’s a long story and an very important one for all traders – what Fibonacci is about. Why is Fibonacci so powerful? It is an operating principle in nearly every sphere of our existence. Some have referred to it as the hand of God or God’s fingerprint. Fibonacci in socio-economics After many months of interacting with the markets, I’ve come to some understandings which I share. I will cut this down to the essence ofRead More

Stalking Skyworks Solutions Inc

Skyworks is a uniquely strong equity. Overall the indications are that there is probably going to be a bounce up on the Earnings Release on 23rd July 2015. This is not a trading tip. If you play this and lose real money, you do as we always say – ‘Sue yourself’.  

What’s powerful about support?

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