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

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.

One of the Most Powerful Indicators We Use

One of the best ways to improve your trading is to experiment.

It’s how I found that a combination of Bollinger Bands (2,20), MACD, relative strength (RSI), Williams’ %R, and Money Flow (MFI) can help lead to success as high as 80%.

How to Know Exactly When to Exit a Trade

If you truly want to be a successful trader, knowing when to exit is essential. Knowing when to buy is the easy part. It’s knowing when to get out that offers the most challenge.

Technical Education 101: Channel Trading

When it comes to technical analysis, there are thousands of patterns to watch for, decipher and understand along the way.

They’re not so tough to understand.

In fact, one of the easiest ones to understand is the channel, defined as two parallel trend lines within a tight trading range. The upper line connects the price peaks in the channel while the lower line connects the price lows.

The Benefits of Combining Fundamental and Technical Analysis

Over the last 22 years, I’ve heard countless arguments for and against fundamental and technical analysis. While neither is perfect, they both have strengths we can capitalize on.

Fundamental analysis shows us what’s under the hood.

At its very core, it helps us arrive at a stock's intrinsic value. It helps us see:

5 Ways to Exploit Herd Mentality

Buy low and sell high.

In other words, buy when a stock is in the dumps, and sell it at a peak.

It’s the best investment advice ever given. The problem is most people do the exact opposite. They sell low. Then, they buy high. They just sucked into the psychology and begin to trade on raw emotion instead of basing decisions on rational thought.