by Chart School - December 2nd, 2010 11:57 am
Improve your Financial Decision-Making Skills with Guidance from EWI Chief Commodity Analyst Jeffrey Kennedy. Courtesy of Elliott Wave International.
As a high school freshman, I had a friend over to do math homework after school. It was cold in the room, so I stood on my chair and jumped up and down to try and bat open a closed heating vent.
My dad walked in and commented on the geometry problem we were working on, as I continued to struggle, unsuccessfully, to open the vent. Then, he handed me a ruler from the table and said:
"Simple tools are what separate us from the animals."
Without another word, he left us to finish our homework. Sadly, I don’t remember any of the geometric formulas that I was trying to master on that winter’s day. But you can bet that I have never failed to reach for a simple, practical tool since.
Here at Elliott Wave International, our technical analysts provide you with simple, practical tools that can help your analysis and trading. EWI Senior Analyst Jeffrey Kennedy has spent years using and mastering — among many other technical trading tools — several well-known moving average techniques. In the process, he has even developed his own personal moving average method that he calls the "Stoplight System."
For a limited time, the first two chapters of "How You Can Find High-Probability Trading Opportunities Using Moving Averages" are available FREE when you join (free) Club EWI.
In these excerpts, Jeffrey explains:
- Defining the Moving Average and Its Components
- The Dual Moving Average Cross-Over System
- Moving Average Price Channel System
- Combining the Crossover and Price Channel Techniques
- The Most Popular Moving Averages
Jeffrey’s insights are meant to help you become more successful and highly evolved in your endeavors. Here is one of the charts showing how moving averages are similar to the Wave Principle in signaling buying opportunities:
This chart of Corning shows how each time the market moves into the price channel (marked by the short vertical lines), it signals a buying opportunity. When Corning’s price breaks through the price channel (indicated by the short diagonal line), the trend has turned to the downside. So, we have a clear uptrend followed by a clear downtrend.
Remember, "Simple tools are what separate us from the animals."
by ilene - July 19th, 2010 2:09 pm
Trading success, comes from screen time and experience, you have to put the hours in!
by Chart School - June 21st, 2010 4:45 pm
Courtesy of David at allabouttrends.net
One look at the SPX chart below tells the story, all in a news driven pop based upon the Yuan.
So are the markets really up today or are they down? Just look at the two charts below.
But to those who had to chase the market at the open and REACT AFTER THE FACT the market is down. This is what they mean when they say “Fade The Gap”. Folks going into today we were overbought to begin with and the Chinese Yuan news was just the icing on the cake to set up the fade the gap and lock in some gains.
Think about it, anyone who basically bought anything today is basically down from their entry.
Moral of the story — listen to the charts and above all NEVER CHASE BUSES BY REACTING.
The markets are stretched and hitting key resistance levels and a lot of individual stocks are also showing this — AKAM, SNDK,NFLX — all have technical indicators and nano-timeframe toppiness showing up as well. Right now we are going slow and protecting what we have.
“What Do I Need To See To Make Me Take A Trade”
You would do yourself well by printing off that phrase and pasting it to your monitor somewhere to keep you focused and to ingrain it in your subconscious.
On the long side it’s all about “Pullbacks Off Highs” patterns. It’s really all you need to know and how to trade them of course.
To learn more, sign up for our free newsletter and receive our free report — “How To Outperform 90% Of Wall Street With Just $500 A Week.”
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