The bullish momentum in cannabis stocks has continued in 2019.
In 2018, we saw Canadian legalization. U.S. states are approving its medicinal or recreational use. Corporate America is tripping over itself for piece of the market.
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.Read More
Imagine jumping off a bridge with a bungee cord.
As you begin to reach the end of the cord’s pull, you’re quickly yanked in the other direction.
That very same thing happens with stocks when they become far too extended in overbought or oversold territory. And we judge exactly where that’s likely to happen with two key indicators.
One of the best ways to spot reversals is by spotting excessive fear.
To do so, we typically watch for agreement among Bollinger Bands (2,20), MACD, Relative Strength (RSI) and Williams’ %R in either overbought or oversold territory. However, we can also strengthen what those indicators say by adding in the Money Flow Index (MFI).Read More
Unbelievably, technical analysis is still written off as useless.
In fact, some denounce it as a laughable study of charts, patterns, and squiggly lines without any concrete or profitable results. Others argue it’s only good for short-term trading.
However, none of that is true.Read More