ARTICLE SYNOPSIS ...Leading Price Patterns by Christopher Narcouzi Cut your losses and increase your profits dramatically by using these techniques. Oscillators provide buy and sell signals, but sometimes they can get you in late or get you out late. Signals generated by price can get you in and out earlier -- a win?win situation. Here's how it works. INSIDE DAYS In Introduction To Technical Analysis, Martin Pring defines an inside day as a two-day pattern with the first day consisting of a fairly sharp rally and the second day's trading range completely encompassed by the first. This indicates buyers have run...
ARTICLE SYNOPSIS ...Winning With Failure by Christopher Narcouzi Believe it or not, you can take advantage of failed patterns and profit handsomely. Have you ever bought a stock after it broke through the resistance line, only to see the price drop a few days later? Have you ever bought into a breakout from a reverse head and shoulders pattern, just to watch that breakout fail a few days later? If you had placed a stop, as recom-mended, your position would have closed out. But you don't have to stop there. In-stead, close your position and trade the stock in the opposite direction. Patterns form because the ma...
ARTICLE SYNOPSIS ...KST Revisited by Christopher Narcouzi You know there's a trend out there -- but is it too late to get in on it? Here's a look at Martin J. Pring's KST indicator, which can give valuable trading insight into trend maturity. Bull and bear markets go through various stages, and how your investments fare will depend on the stage in which you start investing. Investing in the early stages of a bull market will result in the largest profit. Investing in the middle stages of a bull market will be profitable, but not as profitable as the early stage. Investing in the late stages of a bull market will...
ARTICLE SYNOPSIS ...The Strength Of Support And Resistance by Christopher Narcouzi Measuring Overhead Supply Here's how to quantify support and resistance so you can get a good idea ahead of time whether they will hold up when tested. Stocks run up and down between support and resistance lines. Sometimes they break through support and resistance, and sometimes they back off. Usually, they back off if the support or resistance is very significant. You can quantify support and resistance using volume around previous tops and bottoms. Here's how to measure the significance of support and resistance so you can get...