Binary Trading could be simple to trade, but the difficulty comes up with how you will win your trade by knowing which direction you will choose. Traders can actually have a higher chance of winning every trade by simply knowing and applying some technical indicators whenever they trade in the market. Technical indicators can help identify price patterns and historical market behavior on market charts. Most of the traders are plainly looking at the wider trends in the market and then they will trade according to the direction of the trends, but sometimes success in using this is not assured.
Hello traders and MarketClub members everywhere! Welcome to the new trading month of February.
Today, I am going to do something a little bit different, I hope you enjoy the experience and find it educational and informative. To start with, I am going to analyze a static chart of the stock of Applied Materials, Inc. (NASDAQ:AMAT).
In addition to posting a single static chart on the blog, I am also going to be doing a video of that same chart. The video is short, to the point, and explains how I analyze stocks using the tools in MarketClub.
Today's in-depth analysis of Applied Materials shows a confluence of technical indicators that do not add up to a positive outlook for this stock. Remember, any analysis I do at MarketClub should not be considered a recommendation or an endorsement to buy or sell a particular security.
There is an old adage in trading that goes like this, "they slide faster than they glide". Translated, that means stocks go down faster than they go up.
This morning as I was looking over the news, I read with interest that Carl Icahn had taken a 6% stake in Talisman Energy Inc (NYSE:TLM). Talisman Energy is a large Canadian energy company.
On October 1st, the Trade Triangles flashed a major buy signal for Talisman Energy at $11.95. I suspect that this was partly due to the price action that was reflected by Mr. Ichan's purchase of Talisman shares.
1.All Time High. (2) 12 Month Base. (3) +(4) Double Bottom. (5) Trade Triangle Buy at $11.95.
What is also interesting is how Mr. Icahn picks stocks like Talisman Energy. I have witnessed the same actions in play in several other stocks that Mr. Icahn has purchased in the past 12 months. Stocks like Apple, Netflix, Herbalife, and most recently, Talisman, all display similar characteristics. I suspect that the technicals play a part in his overall approach to the market. The timing of Mr. Icahn's stock purchases are amazingly close to the timing of our Trade Triangle buy signals.
Today, we are looking at a chart of Talisman Energy and the stock action looks good from a technical viewpoint, as well as from our Trade Triangles. The potential for this market to go significantly higher is there, in my opinion. Of course, I will be using our Trade Triangles for money management to exit this position, should it not work out the way I expect it to.
As always, please share your thoughts with us on this or any other market.
Larry Levin is no novice to the markets, in fact he's a pretty well-known by traders worldwide. We've asked Larry to give Trader's Blog readers some tips he uses to find daily support and resistance levels and he gladly agreed. Be sure to comment and let us know what you think and some things you use to find key market levels.
Secret Trading Tip #29 From the Desk of S&P Trader Larry Levin, President of Trading Advantage LLC
How to Determine Where the Real Support and Resistance is Everyday
Understanding support and resistance levels is an extremely important skill in any market, and it's absolutely critical if you plan on trading the S&P and NASDAQ E-Mini markets. Professional floor traders are aware of an entire range of major and minor support and resistance levels before the market opens each day. They also know how to calculate new levels as the trading day progresses. Continue reading "How to Determine Where the Real Support and Resistance is Everyday"→