Posts Tagged ‘trading tools’

Simple Tools for Competent Trades

Improve your Financial Decision-Making Skills with Guidance from EWI Chief Commodity Analyst Jeffrey Kennedy.  Courtesy of Elliott Wave International. 

Simple Tools for Competent Trades 

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:

Tools for Competent Traders

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." 

We have extended our special offer — for a limited time, the first two chapters…
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The Greatest Traders

The Greatest Traders

Courtesy of Pivotfarm writing at Zero Hedge 

Moneybag

What separates the 10% that make money from the 90% that don’t?

10,000 hours.

In his recent book Outliers: The Story of Success, Malcolm Gladwell describes the 10,000-Hour Rule, claiming that the key to success in any cognitively complex field is, to a large extent, a matter of practicing a specific task for a total of around 10,000 hours. 10,000 hours equates to around 4hrs a day for 10 years. For some reason most people that ‘try their hand’ at trading view it as a get rich quick scheme. That in a very short space of time, they will be able to turn $500 into $1 million! It is precisely this mindset that has resulted in the current economic mess, a bunch of 20-somethings being handed the red phone for financial weapons of mass destruction. The greatest traders understand that trading much like being a doctor, engineer or any other focused and technical endeavor requires time to develop and hone the skill set. Now you wouldn’t see a doctor performing open heart surgery after 3 months on a surgery simulator. Why would trading as a technical undertaking require less time?

Trading success, comes from screen time and experience, you have to put the hours in!

Education, education, education.

The old cliché touted by politicians when they can’t think of anything clever to say to their audience. The importance of education to success in trading cannot be placed on a high enough pedestal. You have to learn to earn, the best traders work obsessively to…
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A Classic “Fade The Gap” Day

A Classic “Fade The Gap” Day

Courtesy of David at allabouttrends.net

“What’s so special about 1130? It’s downtrendline resistance and a 50% fibonacci level” [Click here for a video on Fibonacci retracements.

One look at the SPX chart below tells the story, all in a news driven pop based upon the Yuan.

Sure enough the opening gap took us right to those levels.

So are the markets really up today or are they down? Just look at the two charts below.

 

So in answer to the question of whether we are up or down for the day — how about BOTH?  To those who have been in the market before Friday’s close yes it’s up.

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.”

****

Adam at Market Club put together a lesson on Fibonacci retracements, an important tool many traders use to determine turning points in the market. Like all tools, it has its flaws and should be…
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Kimble Charting Solutions

Is Gold/US Dollar Ratio Sending Bearish Signal To Precious Metals?

Courtesy of Chris Kimble

Last month, I featured this Gold / US Dollar ratio chart in an article warning of the potential for a trend reversal.

While the broader bullish trend is still intact (higher lows since 2015), it could be time for Gold to take a breather.

Looking at today’s “updated” chart, we can see that the ratio formed a “doji star” candle last month with momentum running at peak levels (concerning). And this month we are seeing follow through to the downside (in the form of a red candle).

As well, this bearish reversal pa...



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Phil's Favorites

CIVVL SERVANT

 

CIVVL SERVANT

Courtesy of Almost Daily Grant's

The thrills of modern technology.  A new tech start-up will soon offer job-seekers entry into the exciting field of evicting delinquent homeowners and renters laid low by 2020, Vice’s Motherboard reported yesterday.  Upstart app Civvl recently launched a national advertising campaign soliciting job seekers to “be hired as an eviction crew.”  

The Civvl website explains further: “Literally thousands of process servers are needed in the coming months due courts being backed up in judgements that needs to be served to defendants." That’s despite the Center for Disease Control ordering a moratorium on evictions through year-end thanks to the coronavirus.&...



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Zero Hedge

Time To Go All-In The "Big Short 3.0"? Two-Thirds Of US Hotels Say They Won't Last Six More Month At Current Occupancy Levels

Courtesy of ZeroHedge View original post here.

Now that hedge funds have finally started piling into the "Big Short 3.0" trade, which as we first explained back in June is basically shifting the CMBS short from malls to hotels, every incremental development in the sector is closely scrutinized.

...



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Politics

'Colossal Backdoor Bailout': Outrage as Pentagon Funnels Hundreds of Millions Meant for Covid Supplies to Private Defense Contractors

 

'Colossal Backdoor Bailout': Outrage as Pentagon Funnels Hundreds of Millions Meant for Covid Supplies to Private Defense Contractors

"If you can't get a Covid test or find an N95, it’s because these contractors stole from the American people to make faster jets and fancy uniforms."

By Jake Johnson

Secretary of Defense Mark Esper and Chairman of the Joint Chiefs of Staff Army Gen. Mark Milley hold an end of year press conference at the Pentagon on December 20, 2019 in Arlington, Virginia. (Photo: Drew Angerer/Getty Images)

Instead of adhering to congressional inten...



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ValueWalk

Environmental NGOs Announce Forest Positive Coalition Against Major Consumer Firms

By Jacob Wolinsky. Originally published at ValueWalk.

Environmental NGOs Call Out Consumer Goods Forum and So-Called ‘Forest Positive’ Companies for Failing to Meet Commitments by 2020

Q2 2020 hedge fund letters, conferences and more

NGOs And CGF Companies Announce A Forest Positive Coalition

New York, NY - Environmental NGOs Rainforest Action Network, SumofUs, Friends of the Earth U.S., and Amazon Watch call out the 400-plus companies in the Consumer Goods Forum (CGF) and their just-announced 'Forest Positive Coalition' for failing to cut deforestation from their supply chains in 2020 and...



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Biotech/COVID-19

How and when will we know that a COVID-19 vaccine is safe and effective?

 

How and when will we know that a COVID-19 vaccine is safe and effective?

How much longer must society wait for a vaccine? ANDRZEJ WOJCICKI/Getty Images

By William Petri, University of Virginia

With COVID-19 vaccines currently in the final phase of study, you’ve probably been wondering how the FDA will decide if a vaccine is safe and effective.

Based on the status of the Phase 3 trials currently underway, it i...



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Chart School

Stocks are not done yet - Update

Courtesy of Read the Ticker

There are a few times in history when a third party said this US paper (stocks, funds or bonds) is worthless.

Here is two.

1) 1965 Nixon Shock - The French said to US we do not want your paper dollars please pay us in gold. This of course led to the US going off the gold standard.

2) 2007 Bear Stern Fund Collapse - Investors said their funds collateral was worth much less than stated. This of course was the beginning of the great america housing bust of 2008.


In both cases it was stated .."look the Emperor is naked!"... (The Empe...

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Digital Currencies

Cryptocurrencies Rarely Used To Launder Money, Fiat Preferred

Courtesy of ZeroHedge View original post here.

Authored by Shaurya Malwa via Decrypt.io,

Traditional channels continue to dominate the estimated $2 trillion global money laundering racket instead of cryptocurrencies, a report says.

In brief
  • Money laundering via cryptocurrencies is not a preferred tool for criminals, a report said...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Promotions

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Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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