Two Simple Tools to Spot Reversals in the Fear Gauge

The Top Signs that a Trend Reversal is Imminent

We have all heard the phrase, "the trend is your friend" and as traders we also know just how amazing profitable it can be trading alongside it as well as how devastating it can be to out accounts when we trade against it. But before we are truly able to spot likely trend reversals, we must be able to spot a trend itself.

How Using the Money Flow Index (MFI) Can Give You an Edge

When it comes to trading, one of the best ways to tell what’s happening is by paying attention to the flow of money in and out of a stock.

Surely, none of us want to buy a stock if money is flowing out, right?

Instead, we want to buy if we’re seeing money flow in, or short if we begin to see signs that money is about to start flowing out of a stock.

How to Use MACD and RSI in Your Trading

If you truly want to make money in the markets, pay attention to fear and greed.

Remember, most investors are irrational. They buy because everyone else is. They sell because everyone else does. And in doing so, they send stocks up, or even down far too much. If you can spot those very overreactions, you can do very well in the markets.

Technical Analysis: Why Fibonacci Retracement Levels are Essential

Bollinger Bands. Relative Strength. The Golden Cross. Cup and Handle Patterns.

These are just a handful of terms associated with technical analysis. The idea behind this style of trading is based on two key ideas.

How to Spot Overbought Pivots up to 80% of the Time

With the incredibly popular Avengers: Endgame film, shares of Disney Co. exploded from a low of $107.50 to $142.50 in April 2019.

After the film grossed $1.2 billion in its opening weekend (biggest in history), analysts were still seen raising price targets. JP Morgan noted the stock could run to $150 a share by the end of the year. The firm also increased its full-year earnings estimates to $6.80 a share from $6.69 thanks to better than expected film performances in the year. For 2020, the analysts hiked their estimates to $6.50 from $6.35 a share, as well.

Price Expansion and Retraction: The Rubber Band Effect

If you pull a rubber band too far, too fast, what happens?

It snaps back, right? The same thing happens with stocks, indexes, and currencies. If they’re pulled too far in one direction, eventually they’ll snap back and revert to back to the mean. In fact, we see it happen all the time.