Posts Tagged ‘technical analysis’
Video Report: Markets At A Cross-Roads – Move Higher Or Crash?
Saturday, July 3rd, 2010
From Elliott Wave Global Market Service
Taking an objective look at the major US equity indexes it would appear likely that there are plenty of reasons why these markets might be close to completing major topping patterns right now. In our view, it is looking increasingly likely the North American region is again set for another significant swoon in prices at any time now in what is likely to be a very strong second down wave in a much larger downtrend move.
By using a combination of Elliott Wave Theory and technical analysis we can identify that the majority of technical evidence is indicating a range of larger bearish topping chart patterns forming now, patterns that are likely to lead to swift declines to much lower prices.
Most interestingly, there are now forming a confluence of factors that are pointing to significant tops forming right now with a great deal of downside potential if these patterns play out as we expect – and in most cases declines look set exceed 60% of current price levels in most markets over the longer term. On a short term basis, a range of topping patterns appear to be close to completion now and are indicative of a 10-20% crash move developing at any time.
Other than a host of technical indicators and bearish technical chart patterns, the most obvious indication of a major move lower is a near complete bearish Elliott Wave count, that if correct will usher a larger crash move in the near term
Rather than go through the individual detail of each market I have decided to attach to this article a copy the Short Term Forecast Report from the 14th of June that details the prevailing technical evidence indicating lower prices directly ahead.
If you are a market follower and use either Elliott Wave or technical analysis for the basis of your trading and you would like to receive daily video reports covering the short term Elliott Wave and technical analysis of the major US Markets, Gold Trust, Oil Holders and USD Bullish then please visit our service at www.eliottwavegms.com. Of course, we also cover all major global markets, currencies and commodities in our monthly forecast report in addition to our portfolio stock service by way of weekly video update.
We are currently offering A WEEK OF FULL MEMBERSHIP FREE to all visitors who register only their first name and email address. To get full immediate access to the full range of video forecast reports for click here GET ONE WEEK OF FULL MEMBERSHIP FOR FREE!
Paul Thomason
Founder, Elliott Wave Global Market Service
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Is the Trend Going to Stop or Continue – Technical Analysis Trading Part II
Saturday, June 5th, 2010In the first part of the technical analysis trading series on Will the trend continue or stop we discussed how measuring the strength of a trend requires two types of tools , which will help you assess if the trend will continue or if it will stop . The first on was setting targets the proper way according to support and resistance’s structure .
The second tool to use is momentum tools. To make appropriate judgments you should use momentum tools and apply them to a smaller timeframe than the one you’re trading … in other words if a daily chart is the way you’re trading , trying to pick either the low of the day or the high when trading, then for support for the intraday trading decisions you’d be looking at half hour or hourly charts .
What are momentum tools ? A moving average in the short term is a great one; in a channel system use three moving averages and you’ll have a matrix created, which you can use to measure the strength of the trend against . Various channel systems exist but one of the most effective is the Drummond Geometry system ( you should have heard about this system in a technical analysis trading course) which uses a short term moving average as its center line of the average of the close, high, and low of the last bars that have been completed , projected to a future bar. Added on to this are two channel bands based on averages of the past 3 pivot points that are similarly managed. Very effective judgments of market strength can be made by monitoring where closes occur sequentially in relation to this system .
Market flow should be established by measuring using various aspects of price strength , such as how close to the high or low the close of the bar is , the distance between close and open , the measurement of the range of the bar , and the amount of progress the bar makes through the matrix of support and resistance .
Another tip : Since there is a system or support and resistance for each time frame, watch the difficulty or ease of in a trend the lowest timeframe monitor breaks its own support or resistance. The more easily this occurs , the more robust the underlying trend is likely to be . Within an uptrend , support that is close to the bar’s low will hold , and resistance nearby is more likely to break easily. Low time period resistance breaking and support holding – this is a good sign that the trend is strong .
With these tips, your stock trading strategy should become a winner consistently as you learn how to distinguish between trends that are running out of steam and the trends that will go on for a long time. A good course that sharpens your technical analysis trading can save you both money and time by giving you the right tools to make the distinctions that are so important.
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Stock Trading Technical Analysis Secrets
Tuesday, May 4th, 2010Technical analysis of the stock market, or any other market such as Forex, futures, is how most traders and investors make their trading decisions. This is as opposed to fundamental analysis which most people more agree is pretty much done as a way of making trading decisions, unless of course you are Warren Buffet!.
You only have to think back to recent stock market scams like Enron to know that it is almost impossible for the average, and even very sophisticated fund manager or hedge fund trader to really know what the real financial state of a company is.
Just by reading the balance sheet and other quaterly reports they release gives you a very poor insight into the real health of the company. Whereas the technical charts of the company tend to give the real picture of what the market thinks of the value of the company. In the case of Enron even simple technical analysis told you to SELL when the stock was in the $80-90 range, this is why technical analysis of stocks is so popular.
So what are the secrets to technical analysis?, I’m about to tell you, here are my golden rules:
* Only use 3-5 simple technical analysis indicators
* Make sure that you understand how the indicators that you have selected work, what the parameter settings are and in what market conditions they are effective
* After selecting your indicators and parameter settings don’t mess with them.
The real secret to technical analysis is to become VERY familiar with your choosen indicators, and really this can only be done by watching and studying the market, so that you get to the point that you TRUST them.
The fact is that in any market, for each bar, there are only 5 pieces of information, the open, close, high, low and volume, yet there are now hundreds of indicators. Most of these indicators are displaying the same information and so are redundant.
For the record my set of indicators are:
* 4 Simple Moving Averages
* Bollinger Bands
* MACD
* Stochastics
But the way I use them is quite special, to learn more about how to become an expert at technical analysis visit:
A875645387
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