When it comes to trading oil, there are two key components to focus on.
One of those is the supply-demand story, of course.
For example, in mid-2018, oil had just staged a major rally from $59 to $73 a barrel. And most likely, noted most analysts, it had a way to go.
Even Goldman Sachs believed it to be true.Read More
We’re often told that technical analysis is worthless, or that it’s just a guessing game.
It’s the same argument over and over again.
But as proven time and time again, technical analysis with pattern recognition can lead to some amazing returns. In fact, simply using a combination of Bollinger Bands (2,20), moving average convergence divergence (MACD), relative strength (RSI), and Williams’ %R (W%R) can pinpoint reversals after bouts of excessive fear and greed 80% of the time.Read More
When Munehia Homma first created candlestick charts in they 1700s, they were meant strictly to track and profit from the rice trade.
He’d record the opening day’s price of rice, the low and the close. And over time, he’d begin to see price patterns in his recordings, mapping out repetitive signals in the price bars. He’d soon give them names, like spinning tops, and hanging man.
The discovery of such patterns helped him successfully predict future direction of rice prices, giving him a significant advantage over other traders.Read More
President Donald Trump just announced the U.S. would withdraw from the Iran nuclear deal and again impose economic sanctions in early May 2018.
And of course, the fear of that sent oil to nearly $71 a barrel.
But analysts didn’t think we'd see a super-spike, as many had feared.Read More
Spinning Tops are depicted with small bodies relative to the shadows. This demonstrates some indecision on the part of the bulls and the bears. They are considered neutral when trading in a sideways market. However, in a trending or oscillating market, a relatively good rule of thumb is that the next days trading will probably move in the direction of the opening price. The size of the shadow is not as important as the size of the body for forming a Spinning Top.Read More
Volatility has been severe in 2018.
After watching the Dow Jones Industrials explode from 24,809 to a high of 26,616, the bottom appeared to fall out starting February 2, 2018, as the Dow fell 665 points.
The Dow would fall another 1,175 points on February 5, and another 1,032 points on February 8, 2018. On March 1, 2018, the Dow would fall another 420 points.Read More