ARTICLE SYNOPSIS ...During a strong trend, a stock will still spend some time in a consolidation period before the next run. Here's a chart pattern that can be found during a consolidation of a strong stock. By Greg Kuhn In most cases, when a stock skyrockets 40%, 50% or even 60% in just a few weeks, it's considered overextended and prone to a deep correction. This is true especially if the rally - often referred to as a climax run or parabolic spike - occurs at the end of an advance that developed over many months. Sometimes the situations could even be the beginning of an even larger advance, and often, such o...
ARTICLE SYNOPSIS ...The Cup-with-Handle Pattern by Gregory Kuhn Most technically based traders become familiar with the classic chart patterns because those patterns give the trader visual evidence of the demand/supply balance of a stock. Interpreting the chart accurately can give you an early warning about your next trading opportunity. Here, the cup-with-handle pattern, a relatively new chart formation, is examined. When it comes to charting stock prices, while many chart patterns are best left to a coin toss, some patterns can reveal a great deal about a stock's future price movement. The cup-with-handle fo...
ARTICLE SYNOPSIS ...V.13:07 (292-297): Trading with the Cup-with-Handle by Gregory Kuhn Here are some more nuances for trading stocks based on the charting pattern called the cup-with-handle pattern introduced by William O'Neil. How much would you pay for a trading system that accurately identified the buying trend of the smart money early enough to profit? Would you spend no more than the annual subscription to a chartbook service? The biggest problem in searching for chart formations is that if you look hard enough at a stock's one-year graph, you're bound to find any formation you want to conform to your b...
ARTICLE SYNOPSIS ...Back To Basics In Trading Stocks by Gregory J. Kuhn Identifying the once or twice a year that the market is ready to embark on a very profitable move is the ultimate quest of anyone trading stocks. But in this day and age of artificial intelligence, with neural networks and fuzzy logic, using something as low-tech as the basic technical tools to find such opportunities may seem, well, backward. Gaining insight into the market's future direction doesn't have to be that complex. While many investors in late spring and early summer 1994 were perplexed over inflation worries, higher interest rat...