Valleys and Mountains are prevalent in charts. There is an old adage in the trading world where people are told not to pick tops and bottoms. Most people pick tops and bottoms out of shear speculation. What is speculation to begin with. Lets do a little dawgma. SpeculateMerriam-Webster.com Definition a : to meditate on or ponder a…
Tag: Technical Analysis
KEWLTECH: Issue 077 – Sweet Oily Legs 2
Well hopefully that first primer helped you out and you are ready to embark on a mentally arduous journey of learning technical analysis. I could barely get through Stephen Hawkings, The Universe. I was up all night working on the mathematical models that he was proposing. Yes 1 single night! I really wished I could have finished…
KEWLTECH: Issue 051 – Distribution Constipation
A lot of people have been trying to short the market. Granted that there are technical basis for their observation. Their problem isn’t that their analysis isn’t good. It is just not supported by the proper time frames and by the amount of volume. This situation makes it seem like the market is being manipulated…
KEWLTECH: Issue 044 – Doji Magic
I remember back in the day, when I just started to trade, and there was this video that TOS was showing off because the music video had TOS platform showing on the screen. It was a pretty kewl video. There was a shirt that was on the “wife”, I think it was Joe Kinahan was…
KEWLTECH: Issue 041 – Where the money flows
People love correlations. “Traders” love to correlate news, government, yadi yadi yada….got so repetitive. But there is another correlation that is worth mentioning. It is the Obama factor. LOL not! It is where the money flows. This is a correlation worth noting because it is consistent and makes plenty of sense. What is this awesome…
KEWLTECH: Issue 040 – Fundamental VS Technical Analysis
Fundamental and Technical analysis are really 2 different styles of trading. The problem arises when people who are day trading think they can use fundamentals to help them in their swings or scalps. When fundamental traders get shaken out by the intraday volatility, not realizing that, for their longer term outlook based on their fundamental…
KEWLTECH: Issue 039 – Beware of the PPT
OMG!!! Here is an example of a little knowledge is a dangerous thing. Many moons ago, when the market does something completely unexpected, people blame the MMs. Now they blame the PPT. Who are the PPT? They are a group of people who will try to save the market or slow down a sell off….
KEWLTECH: Issue 034 – Trends
What is amazing is the number of people celebrating when the market hit the 1216.75 high. I remember watching Bloomberg and listening to some guy talking about 1300. The reason that guy gave was so way off, you saw dung beetles crawling all over him. I can only imagine what the comics at CNBC were…
KEWLTECH: Issue 032 – When Trends Collide
Understanding the trend can get confusing. Especially if you are only looking at short term and completely discounting the longer term trend. The other problem comes when the momentum of the short term seems more bullish or bearish and the longer term which is showing the complete opposite. The ensuing result shows up in many…
KEWLTECH: Issue 031 – Two Bar Reversal
In my group, we call these tubas, as per Mental Midget. Two bars was introduced to me in myriad books I’ve read but never clicked with significance till my chart analyst mentor AskBucky showed me what they are. 2 Bars are best viewed by using bar charts. They are commonly described as railroad ties. In…