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Three of the Most Powerful Technical Pivot Indicators
When bungee jumpers plummet off a bridge, what happens?
They pop back up, right?
The very same thing happens with stocks when they become too overbought or oversold. And if we can position ourselves for the exact moment the “snap back” happens, we can make money. And it’s actually quite easy to spot.
The Benefits of Combining Fundamental and Technical Analysis
Over the last 22 years, I’ve heard countless arguments for and against fundamental and technical analysis. While neither is perfect, they both have strengths we can capitalize on.
Fundamental analysis shows us what’s under the hood.
Meanwhile, technical analysis helps us see the psychology of the masses.
Technical Analysis 101: Two of the Most Essential Moving Averages
When it comes to technical analysis, moving averages are essential.
For example, for more than 20 years, I’ve relied on two specifically – the 50-day and the 200-day simply moving average. Not only am I looking for crossovers for golden and death crosses, I want to see if a stock is holding its own above them.
Three of the Most Powerful Technical Pivot Indicators
When bungee jumpers plummet off a bridge, what happens?
They pop back up, right?
The very same thing happens with stocks when they become too overbought or oversold. And if we can position ourselves for the exact moment the “snap back” happens, we can make money. And it’s actually quite easy to spot.
How Candles Can Pinpoint Opportunity
Way back in the 1700s, Munehia Homma first created candlestick charts for rice trade.
Oftentimes, he would record the opening day’s price of rice, the low and the close.
Over time, he’d begin to see price patterns in his recordings, mapping out repetitive signals in the price bars.
The Two-Step Process to Uncovering Value after a Pullback
“Why would I want to touch a stock that just plummeted?”
My answer, “Why not?”
What many traders don’t understand is that many pullbacks create opportunities, especially when it happens to a well-known stock.
But that doesn’t mean you should run out and buy any stock because it pulled back.