If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. We have gotten such a great response from some of his past posts that he has agreed to share one more of his favorite trading tips as a special treat to our viewers. Determining the direction of the market can be tricky and just plain confusing at times, but Larry’s expert opinion keeps it simple and straight-to-the-point.
Today he’s going to talk about knowing your way around a chart.
For most traders, charts are like their road maps to potential trades. Technicians see potential patterns, key clues that they interpret for trading opportunities. Fundamentalists see confirmation of news stories or supply and demand dynamics playing out in the price fluctuations. Charts are indispensable to traders
Understanding what a chart is telling you is paramount for traders
We are going to look at the two most common chart types, and the basics of their construction. The main thing to understand when you are looking at any given chart is that there is key info that shouldn't change. Each chart will be showing you prices on one axis and time periods on another. Most charts will show the prices on the vertical axis and time periods (e.g. daily, hourly, five minute) on the horizontal one, like this: Continue reading "Knowing Your Way Around A Chart"→
Three steps may sound simple enough. Yet if you have any experience trading, you know that nothing about trading is easy. Education is imperative. So is preparation.
Senior Analyst Jeffrey Kennedy knows that it takes skill, discipline and courage to execute a successful trade. His new book, Visual Guide to Elliott Wave Trading (coauthored with Wayne Gorman), picks up where Frost and Prechter's classic textbook Elliott Wave Principle leaves off: It gives you the perfect blend of traditional textbook analysis and real-world application.
When it comes to improving your wave-based analysis and technical trades, three steps may sound simple enough. Yet if you have any experience trading, you know that nothing about trading is easy.
Senior Analyst Jeffrey Kennedy knows that it takes skill, discipline and courage to execute a successful trade. In the new book he has coauthored with EWI's Wayne Gorman Visual Guide to Elliott Wave Trading, he picks up where Frost and Prechter's classic textbook Elliott Wave Principle leaves off to give you the perfect blend of traditional textbook analysis and real-world application.
According to Kennedy, there are three key components of a successful trade:
Analyze the price charts.
Formulate a trading plan.
Manage the trade.
In this excerpt (Part 1 of 3), Kennedy examines a high-confidence trade setup in Caterpillar (CAT).
Shares of RIMM took a major hit today, closing down 18.99% a share. This came in the wake of a highly disappointing August quarter financial report after the close on Thursday. RIMM reported disappointing sales, profits short of estimates, and weaker-than-expected sales of both BlackBerry smartphones and Playbook tablets.
However, MarketClub members have been short this market since March.
The trend is your friend, and so are MarketClub’s “Trade Triangles.”
Jeremy Lutz and The MarketClub Team
P.S. To learn more about the club Where Members Profit,click here.