To the average trader, candlestick patterns are a bunch of crosses and odd shapes with bizarre names, like the three black crows, or the abandoned baby bottom.
But as odd as they may sound, they can provide powerful insight into direction.Read More
When Munehia Homma first created candlestick charts in they 1700s, he had no idea it’d change the way we look at stocks 300 years later.
To him, candlestick charting was meant for 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, dojis, and hanging man – candlestick names we still use to this day. The discovery of such patterns helped him successfully predict future direction of rice prices, giving him a significant advantage over other traders.Read More
Every time you trade a stock, it’s essential that you understand the psychology of the buyers and seller. If not, you begin to run the risk of losing money.
That’s the last thing any of us want to do.
So, we need to understand if the bulls have gotten ridiculously, and unsustainably bullish. And we need to understand if the bears have begun to lose their minds after a sell-off.Read More
There’s green gold in them thar hills.
As the modern-day Gold Rush rages on, experts are predicting quite a significant boost in marijuana sales.
In fact, at current pace, sales may be on pace to match U.S. soda sales by 2030.Read More
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