ruben_rodrigues

ruben_rodrigues

Ideally the neckline would slope upwards instead. Still a beautiful pattern ... in formation. No breakout below the neckline yet. This breakout could be exactly the trigger which the bears are looking for to trade this downtrending market. For the bears still, watch out for the two ugly bullish candles that arose at the end of the year. Volume below average...

ruben_rodrigues

My beloved monthly timeframe! RSI bullish divergence as depicted by the disagreement between the price plot and the RSI plot. Also noteworthy is the fact that this trading pattern was formed against a long term value-support area. Note though that trends are powerful, they require a lot of capital to die ... and this market is still officially in a downtrend....

ruben_rodrigues

The RSI plot disagrees with the price action. The price has just made new higher highs, whereas the RSI plot is making new higher lows. This is followed by a break below the 10 EMA after an aggressive bull market and another above average sized bearish candle just produced in December. Remember that the future is hocus pocus. There are no certainties in life...

ruben_rodrigues

RSI plot disagrees with the price. While the former made a new higher low back in Dec. The latter made a new lower low, simultaneously. This bullish pattern was formed in a value zone established in a higher time frame. Remember that this is no forecast, premonition or whatsoever. The future does not exist. Technical analysis is merely stating what is,...

ruben_rodrigues

You're welcome. It's too early to read the current candle. It looks like a doji and there are early signs of a possible price x volume divergence. Reverslas tend to appear at this stage. The future is hocus pocus ... never forget. Cheers, Ruben

ruben_rodrigues

Yep! The oracle, the undelooked 12M timeframe. Who uses this timeframe anyway, right? Yet the markets are fractal. Charles Dow knew it ... Leonardo Fibonacci knew it ... Benoit Mandelbrot knew it. oh and the lower timeframe patterns tend to respect the higher timeframe patterns when they diverge. What do you make of Gold right now?

ruben_rodrigues

"When it is a question of money, everybody is of the same religion." Voltaire I think that what Voltaire is trying to tell us with this quote is that money has, throughout history, been a wonderful meaning of bringing different people together. Money has given the world a common and easy to grasp language to understand. Muslims, Christians, Buddhists, Atheists...

ruben_rodrigues

"The experience of the past leaves little doubt that every economic system must sooner or later rely upon some form of the profit motive to stir individuals and groups to productivity. Substitutes like slavery, police supervision, or ideological enthusiasm proof too unproductive, too expensive, or too transient." Will Durant The financial markets! Those deep and...

ruben_rodrigues

And today I've chosen this tiny excerpt from Jesse Livermore. Why? Because there's an obvious lesson in trading that beginners and intermediate traders fail to grasp which needs to be conveyed and underlined as often as possible. Even pro traders ought to be reminded of it every now and then. It goes like this: In trading there is no holy grail....

ruben_rodrigues

"Perhaps it is one secret of their* power that, having studied the fluctuations of prices, they know that history is inflationary, and that money is the last thing a wise man will hoard." *the Medici of Florence and the Fruggers of Augsburg to the Rothschilds of Paris and London and the Morgans of New York Will Durant I am no economist, but the charts say that...

ruben_rodrigues

"I thought of them (the stocks he bought) as something belonging to me, like members of my family. (...) This state of mind lasted until I realized that my pet stocks were causing me my heaviest losses." Nicholas Darvas Perhaps back in Darvas's days this phenomenon had no name, nowadays there are some badass social-economic scientists calling it "endowment...

ruben_rodrigues

"The first ten thousand I made in the bucket shops I lost because I traded in and out of season, every day, whether or not conditions were right. I wasn't making that mistake twice." Jesse Livermore You do the exact same thing or you've done it :) I know it. I used to as well. To be fair, there is an appealing argument in trading in the lower time frames....

ruben_rodrigues

"What, I asked myself, was the value of examining company reports, studying the industry outlook, the ratings, the price earnings ratio? The stock that saved me from disaster was one about which I knew nothing. I picked it for one reason only - it seemed to be rising." Nicholas Darvas To be fair, on his road to make 2 million dollars from trading stocks, Darvas...

ruben_rodrigues

"I do not know when or by whom the word "manipulation" was first used in connection with what really is no more than a common merchandising process applied to the sale in bulk of securities on the Stock Exchange." Jesse Livermore It was interesting for me to revisit this quote from Jesse Livermore because the first time I had contact with its underlying...

ruben_rodrigues

"To read the tape is not to have your fortune told. The tape does not tell you how much you will surely be worth next Thursday at 1.35 P.M. The object of reading the tape is to ascertain first, how and next, when to trade. It works exactly the same for stocks as for cotton or wheat or corn or oats." Jesse Livermore Link in bio for full analysis.

ruben_rodrigues

"History shows that there are no invencible armies." Joseph Stalin How weird to quote Joseph Stalin in a trading article. I love this! Well! Jeff Bezos is the first one acknowledging it, "big companies tend to only survive for a couple of decades.". What goes up, eventually comes down. I dare you to delve into the Forbes 400 of 2012 and check who the top 10...

ruben_rodrigues

Key intakes: - Head & Shoulder Pattern (m). - Double Top Pattern (w), as the right shoulder of the above. - No breakout yet to confirm both. - Are you sure you want to short this market with so much congestion underneath? - Are you sure you want to go along with so much bearish presence? - Immaculate example of how an uptrend can be captured with just: 1. A...

ruben_rodrigues

Recession, US Dollar Implosion, Uncontrollable Inflation. Stack Your Panic Room with Cans of Tuna! This morning I woke up to a reputed news podcast, interviewing a reputed analyst forecasting the implosion of the US dollar. America has scarce room to grow even bigger, he argued. At the beginning of the week, I bumped into a thread in an investing forum, where it...