Reversal Candles …

When flipping through charts at the end of the day or in the evening when you are looking for trading ideas, one of the best candle formations that I like to take note of is when I encounter a possible reversal candle.  You can do this on any time frame chart, but I will generally stick to daily or weekly charts when looking for positional or possible swing trade candidates.

When I look at possible weekly reversal candles, I like to see the stock act strongly in the opposite direction in the first couple of days of the subsequent week … basically, I’m looking for a type of a short-squeeze in that particular stock. Continue reading

US $ Update – September 8, 2017

There is lots of talk on the business channels today about how bad the US$ is performing this week … the business channel pundits are great at looking in the rear-view mirror to tell us what has just happened – that doesn’t really help traders make money, however.   I prefer to look ahead and anticipate what may happen next.

I did that back on March 19, 2017, when I wrote a post about my outlook on the price pattern on the US$ on my old blog site and posted it to StockTwitts and Twitter …

 

Obviously, the link to my old blog site no longer works, but my thesis back earlier this year was that we had likely made a top in the US$ strength, right when everyone was wringing their hands about how strong the US$ was and how that was going to hurt the economy going forward.  Most traders and ALL tv-pundits/economists look at the past price movements of a stock/commodity etc and extrapolating them in a straight line forward.  They don’t bother to consider the wave structure of price movement.

Here is the updated monthly chart for the trade-weighted US$ … Continue reading