Tag Archives: Technical Analysis

Traders and Trend Lines

By Elliott Wave International

Traders and Trendlines: A Match Made in Opportunity Heaven

See why this simple tool helps identify high-probability trade set-ups in real world markets

It’s the start of the winter holidays — which, if your family is anything like mine, is also the beginning of a long tradition of deeply regrettable line-crossing, i.e.:

  • Crossing that line into interrogating “new” dinner guests as to why they are still single
  • Crossing that line into inviting your recently divorced sister-in-law to “stay as long as” she needs
  • Crossing that line into a third (no, let’s be honest) fourth helping of pecan pie

In these cases, crossing “the line” is the first step down a proverbial mine field of emotional and physical discomfort. And there’s no going back!

But in the world of technical analysis of financial markets, crossing one kind of line is often the first step to identifying a high-confidence trade set-up. The line I’m talking about is the trendline.

Continue reading Traders and Trend Lines

The Personality of Waves

By Elliott Wave International

The Personality of Stock Market Waves

Are movements in the markets just prices or is there more to it?

Elliott waves don’t merely reflect prices plotted over time. Each wave has its own “personality.” Watch this video by EWI’s Wayne Gorman to learn more about the psychology behind the waves and how it affects your investment decisions.

This video was taken from the free Club EWI video series, “Learn the Why, What and How of Elliott Wave Analysis.” Free Club EWI members, log in to watch the entire series now >>. (Need a free Club EWI password? It only takes 30 seconds.)


Free Club EWI Video Series:
“Learn the Why, What and How of Elliott Wave Analysis”This 3-video series is a great way to get started with the Wave Principle. You can get these videos free with a Club EWI membership.

Get a free Club EWI password and watch your free videos now >>

Already a free Club EWI member? Access the video series “Learn the Why, What and How of Elliott Wave Analysis” now.

This article was syndicated by Elliott Wave International and was originally published under the headline (Video, 2:05 min.) The “Personality” of Stock Market Waves. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

TA vs. Fundamental…

By Elliott Wave International

[biiwii comment: well, I am a chart guy first, after all…]

Technical versus fundamental analysis? The winner is…

Editor’s note: You’ll find the text version of the story below the video.

Technical versus fundamental analysis: Which approach yields better investment results?

Continue reading TA vs. Fundamental…

Around the Web

By Biiwii

  • Gathering thin reeds  –Jeff Saut  [biiwii comment; oh jeff, how could you own anything by putnam? oh, they’ve cleaned up their front running act?  i see.  all the same, no thank you…  not that it matters to you, but you are on notice for inclusion in this segment in the future.  putnam?  really?  every time I saw the ‘proud sponsor of the n.e. patriots’ ads this past football season, I wanted to hurl]
  • btw  –Josh Brown
  • HP Warns and Blames the Mighty Greenback  –Across the Curve  [biiwii comment: add hp to the list.  since q4 we have been on watch for the strong dollar dynamic to have some effect in corp. america.  not the end of the world, but an effect]

 

Around the Web

  • MBS & MBS  –Across the Curve  [biiwii comment:  some pretty cool play-by-play]

 

NFTRH 325 Out Now

nftrh 325On a weekend where I took my daughter to Boston for two nights of voice coaching/recording, needed to watch the Patriots game (on DVR) and a late Rangers game, on a taxing California road trip (it may have been taxing for them too :-) ), I somehow managed to get 35 quality pages done with NFTRH’s 325th edition.

I am happy with the report for the reason I often am when I think I’ve done a good job; I feel I am personally a better investor today than I was on Friday afternoon.

3 Ways to Identify Support & Resistance

Guest Post by EWI

3 Ways to Identify Support and Resistance – 5 Chart Examples

Today’s lesson considers three ways to identify price support and resistance in the markets you trade.

  1. Previous highs and lows
  2. Trendline support
  3. Fibonacci Ratios

These examples are adapted from Jeffrey Kennedy’s Trader’s Classroom service.


1) Uptrends terminate at resistance while downtrends terminate at support. Previous highs and lows often act as resistance and support.

In ALCOA Inc (AA), the September 2012 selloff found support near the previous July 2012 low.

ewi1

The February 2013 peak occurred following a test of resistance at the January peak at $9.33.

Continue reading 3 Ways to Identify Support & Resistance

Gold Sector, it’s Not Just the Pom Pom Brigade

The last post was a little perspective on gold over the long-term.  This post calls attention to a post at NFTRH where the writer pops off a bit on the gold bears in light of today’s… what ever it is.  Festivities?

I would normally be pretty cautious about a short-covering event like this, but coming off of a gold-negative hype event as it did, driving silver down to the low-end depths of my 14-16 target in pre-market, I find it notable.

Anyway, the post linked above goes into the need to use not only technicals in the gold sector, but importantly sector and macro fundamentals along with other indicators.  You don’t friggin’ chart in a vacuum!  Especially in the precious metals.

I swear this sector is filled with hyperbole both from the Pom Pom brigade and their evil twins managing what has become an ‘everybody knows’ situation with respect to how bearish gold is.  Just ask that weirdo, Willem Buiter over at Citi.

Reacquainting w/ Mr. Fat Head; AKA HUI Monthly

In February of 2013 we noted the big fat HEAD on the HUI’s massive H&S pattern.  It was reviewed again in April of 2013 after it broke the neckline in a very bearish move.  Mr. Fat Head’s technical objective was and is 100.

Why is this being revisited?  Because I have gotten a couple emails noting that it is showing up again out there amidst the very bearish backdrop.  If anything, if every gold bug on the planet is planning for 100, the ingredient is in place for this final indignity that they are so well prepared for, to maybe not happen.

But a target is a target and it is there for a reason; namely that its source – Mr. Fat Head in this case – has not been eliminated from the picture.  Here he is updated…

hui.mo

There are other considerations…

Continue reading Reacquainting w/ Mr. Fat Head; AKA HUI Monthly