The Importance of Spotting Support and Resistance

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How to Spot Potential Breakout Opportunities


Great traders will always go where the action is. 

Volatility, momentum, new highs, and liquidity are some of the key traits they’ll look for. Other times, there’s a fundamental reason for the break, including news, or event that’ll draw even more traders in.

Just what is a breakout, though?

A breakout occurs when a price clears a critical resistance points on a chart.  It could be a trend line, support, or resistance level – all of which represents the sentiment of traders.

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What Momentum Oscillators Can Tell Us


Sir John Templeton wasn’t your typical Wall Street money manager.

His Templeton Growth Fund averaged a 14.5% return for 38 years, crushing the major indices. Every $10,000 invested in that fund in 1954 was worth well over $7 million by 2005.

What set him apart was the fact he never had a forecasting system, an ability to get out before a big market crash, or any other hard-to-replicate strategy.

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What Relative Strength Tells You at Any Time


One of the best ways to find opportunity is by spotting excessive fear and greed.

But that’s easier said than done.  Or so we think.

While none of us have a crystal ball, or hold the Holy Grail to trading secrets, you can give yourself an edge by simply paying attention to what herd mentality is telling you.

 

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How to Spot Market Reversals with Great Accuracy


Traders are always looking for the “Holy Grail.”

And while I hate to burst their bubbles, it doesn’t exist. If it did we’d all be rich.

However, while we’ll never be able to predict market moves with a high-degree of certainty, or be able to guess on the duration of a move, we can give ourselves a leg up by keeping an eye on the psychology of the herd.

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Always Keep Your Eyes Open for Moving Average Crossovers


By now, you’re well aware of how to find trends using simple moving averages, such as the 50- and 200-day moving averages.   But you should also know how to potentially spot when a trend could stop dead in its tracks, or birth a new trend.

All we have to do is wait for a crossover to do so.

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The Best Time to Buy a Stock on a Pullback


Buy respected stocks that every one temporarily hates. 

That’s as close as we’ll ever get to the “Holy Grail” of trading advice. In fact, it’s the same advice you’re likely to receive from Warren Buffett, Baron Rothschild, and Sir John Templeton who bought excessive fear.

The only difference between them and myself – besides the gobs of money – is that fact that I don’t just rely on fundamental analysis. I also rely on technical pivot points. 

To this date, Buffett still doesn’t believe technical analysis is worth his time. But I’m not about to argue with a man worth $74.8 billion. 

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