Category: Technical Analysis

A Deciding Factor When Deciding a Security to Pursue Options Trades

Posted on March 21st, 2023

The purpose of this education is to help ones powers of observation when studying a security’s chart. When you have more than one security to choose from there are numerous things to analyze and use in deciding which one to pursue an options trade on. One factor is assessing the Reward potential of the different […]

One Economic Report Down More to Go

Posted on March 14th, 2023

The CPI Report Came Out This Morning The reported number came in as expected. The fact it didn’t come in better or worse than expected seemed to give market bulls some confidence to put their money to work. It was if the mind set is inflation may not be getting better, but at least it […]

When to Initiate an Options Trade Based on Technical Analysis

Posted on March 13th, 2023

There will be a time or two (or more) in your options trading life where you will see a technical pattern you like form or forming during the trading day. It is at those times where you will feel compelled to go after an option trade based on that formation intra day before waiting to […]

With a Breach of Support What Might the Major Market Averages Do in the Short-Term?

Posted on March 10th, 2023

When a security breaches a price support or resistance level there are a few things to decide concerning what to do next.  This article will address some of those things. Old Support / New Resistance When a security breaches a support level (or a resistance level) for one day one can either be really aggressive […]

The Stock Market Averages Prior to the Fed Chair Testimony This Week

Posted on March 6th, 2023

When you look at all three of the ETF’s for the Top 3 Major Stock Market Averages do you see similarities? Here are a few that need emphasis. Here is how a “Shooting Star” is interpreted.  It is considered a type of reversal pattern, which mean it could bring about a stock’s price reversing its […]

A 2-day Japanese Candlestick Reversal Pattern That Could Signal Support for US Equities

Posted on March 2nd, 2023

The last couple of educational articles have been centered around possible support for the stock market and whether it is finding support or at risk of breaking support. Today’s article will discuss the prospect of the stock market  finding support, which could lead to higher prices to come. Japanese Candlestick Pattern – Bullish Engulfing Pattern […]

Multiple Fibonacci Time Frames show the Market at a Possible Support

Posted on February 24th, 2023

The markets are experiencing their worst week since early December of 2022. The inflation reports out in this, and the previous week show inflation is still running hot.  So much so that the Fed, some would say, has no choice but to continue to raise interest rates.  The feeling by many is that as rates […]

Is a Bearish Single Day of Trade Positive or Negative for a Stock or ETF?

Posted on February 9th, 2023

When you look at a stock or ETF chart, whether it be an Open, High, Low, Close (OHLC) chart or a Japanese Candlestick you will have the inclination to decide if the day was a positive day or negative day. When you think in terms of a positive move you might think in terms of […]

A Technical Analysis Pattern We Love to See in Stock or ETF Charts

Posted on February 6th, 2023

Here is a discussion / brief article on a technical analysis chart pattern we love to use in our options trading analysis. It is where either Old Support becomes New Resistance or Old Resistance becomes New Support. This piece today will highlight the latter: Old Resistance Becomes New Support. Notice in figure 1 above how […]

Take a Look at our One Year Fibonacci View on the Stock Market

Posted on February 3rd, 2023

The Jobs data came out this morning and they aren’t helping the markets on the day. Here are the quick numbers for the jobs data and then I want to focus on the technical chart on what I use to represent the stock market, which is the SPY from the first trade day of 2022 […]