As is its habit, the S&P 500 is in a channel.
It is always either in a channel, a bear market, or uncertainty (after a top or bottom)
Let's simply look at past examples
2013 - 2014:
2004 - 2008: You could say it stayed in this one 600 to 1000 days
2017:
1991 - 1995:
1995 - 2000: 700 to 1300 days in the channel depends where you start
1984 -...
In this idea I’ll be covering two valuation metrics the PEG ratio and the income yield here is the PEG ratio:
The PEG ratio (price earnings growth ratio): This is another very popular ratio and it is calculated by dividing the share price by the product of the eps and the annualised eps growth rate. There are many different types of PEG ratios, and the annual...
A short ⚠️disclaimer before we start:
the rules that will be discussed in this post are applicable only for technicians - traders that are relying on price action/structure/etc.
Also, we assume that structure levels do work and for us, key levels are considered to be the safest trading zones/points.
In order to increase the accuracy of your predictions...
Just A Quick Video On How To:
1. Combine a bunch of stocks on a single chart so you can identify which ones are performing best over different periods.
2. Share this list of charts with friends, family, and followers.
I just like creating and saving the overall chart to give people a better visual idea of what you are sharing with them, but you can share your...
Hey traders,
If you are learning price action trading, you definitely must know a double bottom pattern.
Double bottom is a reversal pattern.
It is applied to spot early market reversal clues and catch the initiation of a new bullish trend.
Preconditions for a double bottom:
1️⃣ The market must trade in a bearish trend.
2️⃣ After a formation of the last...
DIS has been consolidating for most of 2021 between $188 and $168 in a $20 range
Over the last 5 months the range has started to tighten up with a few breaks of $180 but this soft level still acting as resistance
We are seeing the buyers step up as they continue to form higher pivot lows ($168 to $170 to $171 to $172 to $176)
Each time this happens buys and...
Volume is a useful tool for studying trends, and as you can see, it can be used in a variety of ways. Basic principles can be used to determine market strength or weakness, as well as to determine whether the volume is confirming a price increase or decrease. Volume-based indicators are occasionally used to aid in decision-making. In conclusion, while volume is...
Spot Trading is the most basic form of trading method and is the most suitable for beginners in trading. It's simply a BUY > HOLD > SELL mechanism.
On the Other Hand
Margin Trading is complicated and should only be done by experienced traders. There are various components to margin trading such as Maintenance margin, margin calls, leverage, and liquidation....
Our protective stops are vital to managing our risk, and just a single position you open without a stop can lead to the suicide of your trading account.
The uniqueness of stop orders lies in the fact that they, being pending orders, await their execution at a predetermined price. When stop orders are triggered, their important function is that they add momentum to...
The P/E valuation metric: This is by far the most popular valuation and it is simply dividing the market cap by net income (for the year), it can also be calculated by dividing the share price by eps, the lower the p/e the better, as you are having to pay less for the earnings. Generally, a company is considered expensive with a P/E of over 30 and cheap with a P/E...
In this video I explain my favourite candlestick patterns and how to use them in your own trading.
Here we describe:
Engulfing Candles
Doji Candles
Hammer Candles
And I explain how to use them with confluence & context of where on the chart they occur.
Good morning everyone! From now on, every Thursday morning we will be highlighting our favorite trade setup of the week. This week, we will be taking a look at a short setup in A.
Agilent Technologies makes lab equipment for life sciences and chemical companies, which is a stable and growing market. The company does a lot in revenue - roughly 6 Billion over the...
Longer term analysis of current market cycle position. Some of the data as to why certain points are used can be found in ideas (see related idea below for more info).
Bulls would probably feel short changed with the current state of the bitcoin "top" - should this current position be the top.
I personally am optimistic of price action however feel Bulls should...
All the financial markets are cyclical :
after a sharp and strong bullish trend always comes a severe bearish rally.
After panic & massive selloffs, the market tends to recover and awakens optimism closing a vicious circle.
Watching carefully how the price acts during these cycles, an observer can identify the recurring stages .
#1 Accumulation
The...
I got smoked shorting the MNQ today. And it was avoidable.
The MNQ1! and the MES1! were flashing warning signs since the Sunday open to NOT fade the move. I stayed off the sell side for the opening 30 minute candle, but then got sucked in at a level. The entry was a violation of one of the Golden Rules of Range Trading - STAY AWAY from Outside Days!
In this...
Hi guys, back with another Bitcoin publication after a couple of months of inactivity. Not because nothing happened, but because my previous analysis is still valid.
Anyway, I thought I'd make a comparison between the 2013 and 2021 bull markets, as it is striking how similar they are.
Let's start with sharing a screenshot of the 2013 bull run, some annotations...
The Chicago Board Options Exchange (CBOE) developed the VIX in 1990 to serve as a benchmark for predicting future stock market volatility. It's a real-time indicator that represents market participants' volatility predictions for the following 30 days. They built the VIX index using weekly and conventional SPX index options, as well as their implied volatility...
