_20110820213338.jpg)
What Are the BEST Technical Indicators for Successful Trading?
8 technical analysis tools that give any trader an edge
You may have seen a TV ad where “traders” describe their strategies, and one says, “I trade on fundamentals.” That sounds very reassuring — except that, on any given day, “fundamentals” are a mixed bag:
- You might have a good U.S. employment report…but bad news from Europe
- A positive Fed statement…but a negative housing number
- Strong earnings…but slowing consumer spending
And so on. Which “fundamental” factor trumps the other? Which one carries more weight in your forecast? Your guess is as good (or bad) as anybody’s.
Your alternative is technical analysis, which forecasts the markets’ short- and long-term moves based on objective metrics, not guesses. Continue reading
“Your Work Helps Me in a Very Practical Way”
Prechter talks with Mind of Money Host Doug Lodmell
Robert Prechter offers a broad overview of the Wave Principle in this interview clip with The Mind of Money host, Douglass Lodmell. Continue reading
Trends in the U.S. Dollar, Stocks and Gold
Today we have Chris Vermeulen “The Gold and Oil Guy” to tell us a bit about where the massive deficits will take the Dollar, Stocks and Gold. ~editor
Gold and Stocks Heading Higher with GDP Crashing
As most investors and traders are aware, the U.S. Federal government has run up significant deficits and the long term debt burden is becoming a drain on Gross Domestic Product. That being said, most economists are discussing the possibility of a major decline in the value of the U.S. Dollar going forward as inflationary monetary policy begins to strangle growth. While that view point may prove right over the long haul, in the short run most traders are not likely expecting the U.S. Dollar to rally.
The U.S. Dollar is expected to reach a multi-year cycle low in the near future. From the cyclical low, I expect the U.S. Dollar to regain a strong footing and work higher against the crowd. This is not to say that the U.S. Dollar will not eventually decline, but financial markets do not work that easily. Shorting the U.S. Dollar is a crowded trade and Mr. Market punishes crowded trades quite often by pushing prices the opposite of what the herd is expecting. Should the U.S. Dollar find a strong underlying bid, precious metals and domestic equities would feel the brunt force of such a move. While it remains to be seen if the U.S. Dollar rallies, if it does it will catch many traders and economists by surprise and the unwinding of the short dollar trade could unleash a wave of buying that we have not seen for quite some time.
Let’s take a look inside the market…
Free eBook – Use Trendlines to Improve Trading
Trading the Line – 5 Ways You Can Use Trendlines to Improve Your Trading Decisions, by Senior Analyst Jeffrey Kennedy.
In this free 14-page eBook, Elliott Wave International Senior Analyst Jeffrey Kennedy shows you the power of simple trendlines. Jeffrey will teach you step-by-step the many ways to apply trendline techniques, how to use them to make trading decisions, and how doing so can mean trading success. When you add trendlines to your trading arsenal, you stop guessing and start strategically planning when to take advantage of a trend or when to get out.
Through practical, real-world lessons Jeffrey shows you why, in his words, a trendline is a simple, crucial tool. You’ll learn 5 ways to draw trendlines, including critical techniques to find support and resistance, the end of a move, and changes in trend. You’ll be amazed at how a tool as simple as trendlines will tell you critical information about a market.
Only Available until February 7 -
Continue To Conquer The Market
You only have to watch my earlier videos to see that it has performed very well this week in gold as well as the crude. In today’s short video I want to share an ETF that is setting up nicely and should be giving us a buy signal using the same strategy that we used in the earlier gold and crude oil videos.
This ETF which closely follows the Swiss Franc (symbol FXF) is one you may want to take a look at. As you may be aware, the Swiss Franc is independent of the euro zone and is a separate currency that is backed by the Swiss government.
I think you’ll enjoy this short lesson as it will reinforce the two previous lessons on how to use this indicator. In case you missed our earlier lessons, you can watch the gold and the crude oil videos on the INO Trader’s Blog.
As always our videos are free to watch and there are no registration requirements. Feel free to discuss them on the INO blog, Tweet them to your friends, and e-mail anyone that you think could benefit from these educational trading lessons. Continue reading
How to Trade the Holiday Grind
By Chris Vermeulen, The Gold and Oil Guy
It’s that time again when volume dries up and prices rise into the new year. A lot of individuals are scrambling to prepare for the holidays, even though we had a year to prepare. The big money has already done most of their year end shuffling and will be taking it easy until January.
The market is overbought and sentiment readings are at extreme levels which in the past have been the start of large sell offs and even bear markets. While I am keeping a close eye for a top, there is not much we can do but stay long stocks and commodities until the market tips its hand and distribution selling is in control. The U.S. federal government is the only wild card going into year end that should be on traders’ radars. They have been doing a great job boosting prices in the equities and commodities market, but can they continue to hold things up when the big money and the proverbial herd start unloading positions in 2011? Continue reading
How to Spot High-Probability Trading Opportunities
Discover the Dynamics of Using Moving Averages
The “moving average” is a technical indicator which has stood the test of time. Nearly 25 years ago, Robert Prechter described this indicator in his famous essay, “What a Trader Really Needs to be Successful.” What he said then remains true today:
“…a simple 10-day moving average of the daily advance-decline net, probably the first indicator a stock market technician learns, can be used as a trading tool, if objectively defined rules are created for its use.”
Indeed, “objectively defined rules” are vital to the successful use of moving averages. And as you might imagine, advanced rules and guidelines work to the benefit of more advanced technicians. Continue reading
Perception Is Everything
It’s more important to the market than Ireland, Greece, Portugal, and Spain combined
The trials and tribulations of these four countries (that have run up huge deficits) have been well known for quite some time. What is more important in my opinion is not the size of the debt, which is staggering, but rather what is going on with market perception.
Market perception trumps everything else out there. Market perception trumps market fundamentals every time. Market perception is the one card that the government cannot control. It is the card that can potentially give the individual trader an edge. Continue reading
Trade The Trend in Gold, Dollar, S&P500
Today we have an analysis by Chris Vermeulen “The Gold and Oil Guy”. Chris has some rock solid tips on trading choppy markets like we are seeing now. Picking tops can be very difficult and costly so check out Chris’ advice in the final paragraph. It’s worh its weight in Gold!~ Tim McMahon, editor
Dollar, Gold & SP500 Trend Trading
November 10th, 2010
It has been a roller coaster week thus far as stocks and precious metals plunged on heavy selling volume on the back of a rising dollar, only to make a strong rebound Wednesday. While there has been significant intraday price movement, it was no surprise to us as we have been anticipating this pullback since discussing it in my Sunday Gold Newsletter.
Let’s take a quick look at the charts…
US Dollar Daily Trading Chart
The past couple weeks the dollar has traded in a choppy fashion, and last week I mentioned to subscribers to keep any new positions small. The dollar looked ready to make a bounce and if it reverses we will see stocks and commodities correct rather sharply.
Last week we trimmed some profits on our gold and SP500 trading positions in anticipation of a rising dollar/lower equity and metals prices. The dollar is currently in a down trend so we are still trading with the trend, but the next couple sessions could potentially change that.
As you can see on the chart a similar pattern to what we saw during Continue reading
Head and Shoulders Stock Market Pattern: Still Valid?
A Multi-Year Technical Analysis Pattern “Bears” Watching
By Robert Jay
description of its three main components:
