Technical Analysis (General News)

[winston]

Use Pattern Recognition to Perfect Your Trades

by Marc Lichtenfeld

1. The "Bull Flag" pattern.
It starts with a sharp move higher (the flagpole), and then it consolidates for a short period. Once it breaks out of that consolidation, it typically moves higher by the same distance as the flagpole.

2. Head & Shoulders

3. Channels

Source: Wealthy Retirement

https://dailytradealert.com/2022/10/08/ ... ur-trades/

[winston]

The Weakest Market Ever?

by Luke lango

The technical indicator we are referring to is the McClellan Oscillator.

In short, it is a unique statistical measurement of the number of advancing stocks in the market relative to the number of declining stocks. It’s a market breadth indicator.

Specifically, the indicator measures the difference between the 19-day and 39-day exponential moving averages of net advancing stocks.

The higher the difference, the wider the market breadth. The lower the difference, the narrower the market breadth.

The McClellan Oscillator is broadly considered the best way to measure stock market breadth.

In any event, the 50-day moving average of the McClellan Oscillator dropped below -15 last week, and has stayed below that reading ever since.

That’s an unusually weak McClellan Oscillator reading. It’s about as weak as the reading has ever been. It speaks to “peak fear” and “peak weakness” in the market.

For context, this oscillator has dropped below -15 only 109 times before on record (going back to 1990), meaning the oscillator has spent just 1.4% of trading days where it is today (below -15).

Now, here's the bullish part: Stocks tend to rally big after the McClellan Oscillator gets this negative.

And not just sometimes – but ALWAYS.

Source: Hypergrowth Investing

[winston]

How I Use the RSI Indicator to Lock in Profits

by Shah Gilani

RSI levels north of 70 indicate overbought conditions. But the conditions that brought the stock or market higher can continue, for who-knows-how-long. That’s why I don’t sell winning long positions when they’re “overbought.”

So, when a winning position becomes overbought, I take steps to lock in profits. What I do is adjust my stop-loss orders. In this case, they’d be profit targets to capture if the stock slips backwards.

Rely on the trend you’re riding and whether momentum remains positive or shows signs of fading.

Source: Total Wealth

https://dailytradealert.com/2023/02/04/ ... n-profits/

[behappyalways]

A good watch. She is one of the best chartists out there.


Deep Dive: Katie Stockton 1-on-1 with Danielle DiMartino Booth
https://app.hedgeye.com/insights/128308 ... hedgeye-tv

[winston]

This Simple Chart Pattern Delivered Same-Day Triple-Digit Gains

by Bryan Bottarelli

It’s called the “W” pattern.

Source: Wealthy Retirement

https://dailytradealert.com/2023/02/16/ ... git-gains/

[winston]

The One Technical Indicator Every Investor Must Understand

by DANIEL KUHN

There's only two things as the technician is concerned -- price and volume.

So if a stock makes a new high and volumes decline, that's not a vote of confidence.

Source: The Street

https://www.thestreet.com/video/the-one ... Understand

[winston]

The “Super Golden Cross” Stock Indicator Is Infallible

by Luke Lango

The “Super Golden Cross” Stock Indicator Is Infallible

Earlier this year, the S&P 500 triggered a rare “golden cross” signal. And such a stock indicator tends to mark the start of big new bull markets.

Golden crosses are triggered when a short-term moving average (MA) crosses above a long-term moving average. Typically, for this analysis, investors use the 50-day and 200-day moving averages. Therefore, the typical golden cross signal is triggered when the 50-day crosses above the 200-day MA.

Usually, it’s bullish.

The operative word there is “usually.”

Golden crosses are usually bullish. They aren’t always bullish.

Since 1950, the S&P 500 has experienced 36 different golden crosses. About 80% of the time, stocks are higher a year later, with an average return of about 10%.

When we look at golden cross signals that happened more than 10% off all time highs, the odds look better. That has happened 16 times since 1950. In 15 of those 16 instances (94% of the time), stocks were higher a year later, with an average return of 16%.

A graph showing changes in the S&P, highlighting instances of 'golden cross' signals far from all-time highs and detailing forward returns afterward

Those are great odds. But… 94% is not 100%.

I’m looking for an indicator with a 100% hit rate. I don’t want any uncertainty.

And that’s why I created the “Super Golden Cross” signal.

An Infallible Stock Indicator

The Super Golden Cross is my modified version of the standard golden cross signal, and it’s infallible. It isn’t 80% or 90% accurate. Going back to 1950, it has a 100% accuracy of predicting bear market endings and bull market beginnings.

It is triggered only when a convincing golden cross happens after a long bear market. Specifically, the Super Golden Cross is triggered only when the 50-day crosses above the 200-day MA and stays above it for at least three days, after spending at least nine months below it.


Between 1950 and 2022, this Super Golden Cross signal was triggered only eight times.

All eight times, it marked the end of a bear market and the beginning of a new bull market.

Every single time. No false signals. 100% accuracy. And average peak returns a year later were huge, on the order of nearly 25%!

This Super Golden Cross signal was recently triggered for the ninth time in history and the first time since 2009, when stocks proceeded to soar as much as 32% over the following year.

Source: Hypergrowth Investing

[winston]

Coppock Curve

It was developed by renowned market strategist Edwin Coppock in the 1960s to signal long-term stock market trends and specifically, to identify when bear markets are turning into new bull markets.

At its heart, the Coppock Curve is a momentum oscillator. It uses math to measure medium- and long-term momentum trends in the stock market and tracks changes in those measurements.

When medium- and long-term momentum rises on a persistent basis, the Coppock Curve triggers a buy signal. When they fall on a persistent basis, the Coppock Curve triggers a sell signal.

As stated before, it was designed to identify major shifts in market trend – from positive to negative (sell signal) or negative to positive (buy signal).

And just last week, the Coppock Curve triggered a buy signal, on adjusted parameters.

Source: Hypergrowth Investing

[behappyalways]

Psychology and Phases of a Market Cycle Applied to the Current S&P 500 Chart
#stocks #marketcrash

by Gareth Soloway

https://youtu.be/XdLvIkK275A

[winston]

Technical Trading 101: What, Why, and My Go-To Indicator

by Chris Johnson

The 50-day moving average (MA50) is the lifeblood of the technical-analysis world. There is no other trendline that embodies the phrase “the trend is your friend” better.

When a stock’s MA50 is rising, there is a 2:1 likelihood that the stock will move higher. Similarly, when the MA50 is trending lower, there’s a 2:1 chance the next day’s price will go lower.
Granted, it’s a simple rule, but it provides the backdrop for simplifying technical analysis.

Source: Money Morning

https://dailytradealert.com/2023/05/14/ ... indicator/