0Posted by Michael Glass on June 4, 2011 at 7:12 pm
Weekend Stock Market
Technical Analysis
Wrap Up
Here is our Weekend Stock Market Technical Analysis Video Update for Saturday, June 4th. In this video, we look at the key market moving events of the past week including the the ratings cut on Italy by Standards & Poors. We then pull up the charts to identify key technical analysis price levels for the S&P 500. We then look to see if some of the market leaders are pulling the market higher or lower (Apple, Amazon, Google, Goldman Sachs, Priceline and Netflix). Finally, in our education spotlight, we look at the keys to developing a trader’s mindset to becoming a successful and profitable trader by trading when the odds are in your favor.
0Posted by Michael Glass on June 2, 2011 at 7:52 pm
Learn How to Trade
Double Tops and Double Bottoms
The double top and double bottom are a pair of well-known chart patterns used by investors to identify potential reversals in an existing trend. After price action attempts to once again test and break a previous swing high or low, momentum has run out and the trend is reversed and a new trend begins. When you look at these chart patterns forming, they will often resemble what looks like a “W” (for a double bottom) or an “M” (double top).
Double Top
The double top pattern is found at the peaks of an uptrend and is a clear signal that the momentum is weakening and that buyers are losing interest. The pattern is considered to be triggered when the price of a security breaks below the support level.
Double Bottom
This is the opposite chart pattern of the double top as it signals a reversal of the downtrend into an uptrend. The patterns is considered to be triggered when the price of a security breaks above the resistance level.
For both the chart patterns, volume should be an important focus. You should look for an increase in volume when the security falls below the support level or above the resistance level to complete the patterns. The double tops and double bottoms chart patterns are strong reversal patterns that can provide trading opportunities.
Watch the video to learn how to trade double tops and double bottoms
0Posted by Michael Glass on April 29, 2011 at 5:17 pm
Learn How to use
Candlestick to Maximize Profits
Originating in Japan over 300 years ago, candlestick charts have become a popular technical analysis technique in recent years. Candlestick charts provide an easy-to-read graphical representation of a security’s price movement over a specific period of time. Investors use candlesticks are most commonly used for day trading stocks, commodities, and currency (forex). Candlesticks can be used for any time frame, whether it be one day, one hour, 30-minutes or one minute.
Candlesticks are formed using the open, high, low, and close of the chosen time period.
If the close is above the open, then a hollow candlestick (usually displayed as white or green) is drawn.
If the close is below the open, then a filled candlestick (usually displayed as black or red) is drawn.
The hollow or filled section of the candlestick is called the “real body” or body.
The thin lines poking above and below the body display the high/low range and are called shadows.
