Imagine that you come across a stock that’s forming an ascending triangle pattern. You know that a breakout is likely to occur given the series of higher lows, and sure enough, the stock breaks out the following session on high volume. There was no fundamental news to justify the breakout—the price movement seemed to occur out-of-the-blue.
Did the ascending triangle pattern predict the breakout? Or, did the chart pattern cause the breakout? Does the answer really matter in practice?
Let’s take a look at these questions, what drives prices, and how traders can profit.
Continue reading Technical Analysis and Self-Fulfilling Prophecies – TrendSpider Blog
Most traders have noticed the inverse relationship between the dollar and commodity prices—include crude oil. While this isn’t surprising for commodities priced in dollars, the inverse relationship also holds true for commodities priced in other currencies. Commodity traders should keep these relationships in mind when trading futures contracts, particularly when the dollar index experiences significant movements due to interest rate decisions or other factors.
Let’s take a closer look at the relationship between crude oil and the dollar and what it means for traders.
Continue reading What’s the Relationship Between Oil and the Dollar?
Predicting the reaction to an earnings announcement is notoriously difficult. Even if a company misses on revenue and income, the stock price could rise sharply higher if the market’s expectations were low, future guidance was better than expected, or the conference call contained some bullish language. The sharp reactions to earnings can also blow up technical charts as prices move beyond strong support and resistance levels.
Let’s take a look at how technical analysis is best used to capitalize on earnings announcements.
Continue reading How to Trade Earnings Announcements with Technical Analysis – TrendSpider Blog
There are growing signs that the global economy may be headed towards a slowdown after a record decade of growth. On January 21, the International Monetary Fund (IMF) cut its global economic growth forecasts for 2019 and 2020, cutting weakness in Europe and several emerging markets. The global lender also suggested that Sino-U.S. trade tensions and Brexit concerns could further destabilize the financial markets.
Let’s take a look at where the global slowdown is occurring and what it means for active traders over the coming weeks and months.
Continue reading The Global Slowdown and What It Means for Traders – TrendSpider Blog
A big thank you to Dan and the Bullish Bears community for having us as a guest on their webinar on January 24th. In this webinar, we take a look at some of the main features available on the TrendSpider system and how to use those features when conducting your own analysis. We look forward to continuing these webinars as new features are released to the public!
Continue reading 1/24 Webinar With Bullish Bears – TrendSpider Blog