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.Read More
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.Read More
If you want to make obscene amounts of money, pay attention to fear and greed, technically.
In times of panic, we sell without thinking. We just do it because everyone else is. In times of excessive greed, we buy without thinking. We just do it because everyone else is, and because of the fear of missing out (FOMO).Read More
Any time you use technical analysis, confirmation is essential.
If you’re not willing to confirm, you’re doing yourself a great disservice. In fact, at no time will I ever just use Bollinger Bands (2,20), MACD, relative strength, or Williams’ R% alone.
That’s an amateur, foolish move.Read More