Tag: Trend Lines

An Extraordinary Admission Of Failure!

Posted on by The INO.com Team

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Wednesday, the 10th of August.

We have had an extraordinary admission of failure!

Yesterday, the chairman of the Federal Reserve, Ben Bernanke, acknowledged in what was perhaps the most stunning statement ever by a sitting chairman of the Fed... That the economy was not doing as well as they had predicted.

Duh Ben, welcome to the real world!

In our comments yesterday before the chairman spoke, we hoped that the Fed wouldn't do anything stupid like announce QE3 or that they will be dropping money from helicopters. Instead, the United States has just played its cards out to the world, saying that we are not going to be raising interest rates until.........let me guess 2013, after the elections. Continue reading "An Extraordinary Admission Of Failure!" →

Everything Is Possible

Posted on by The INO.com Team

Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your 1 p.m. market update for Tuesday, the 9th of August.

Will the Fed come to the rescue of the market?

Everything is possible, it just depends on how stupid the Fed wants to be. In the study of economic history and capitalism in America there are periods of maximum euphoria and maximum depression. You almost can't have one without the other, that is one of the ways capitalism works. We've gone through a period of time that we've seen unprecedented euphoria and debt put on America's chalkboard. And we have witnessed millions of Americans faking their way to happiness using credit cards.

As hard as it is for everyone to accept that the good times are over, it is now time for what everyone doesn't want... Economic pain. You may want to look at an earlier posting, that I posted in 2008 on cycles in American capitalism. It holds true now just as it held true 100 years ago.

The next shoe to drop will be interest rates. Interest rates have only one direction to go, and that is to the upside. This a fact of the marketplace and probably more pain than most people want to endure.

The potential for the equity markets to continue to erode and drift lower is very high, in my opinion. To temper that thought I'm going to say up front that I'm a trader, not an investor. Right now, the days of buy and hold are over and will not resume for many years to come.(See 100 years of capitalism). If I am right, the equity trends will remain negative with minor counter trend rallies. We could see the equity markets on the defensive until right before the 2012 elections. Only time will tell... Continue reading "Everything Is Possible" →

How to Determine When the Market is Really Trending

Posted on by The INO.com Team

S&P Trader Larry Levin, President of Trading Advantage LLC, has agreed to share one of his favorite trading secrets as  a special treat to our viewers. Determining a trend can often be tricky. Get Larry's expert opinion on how to keep it simple. If you like this article, you won't want to miss his secret one-time framing technique!

-----------------------------------------------------------------------------------------------------------------------------------------------------

How to Determine When the Market is Really Trending

How often have you looked at a chart and tried to determine whether or not the market is really trending? How many times have you been fooled by your Stochastics or RSI indicators? How many times have you sold because your oscillators were screaming overbought then watched the market dip a little and then continue higher, stopping you out for another loss? One of the most important things you are probably trying to figure out with any given market is if it is in a trend, and in which direction that trend is moving.

Find the trend and make friends with it

Swimming upstream is difficult, and that kind of battle is probably why you’ll often hear traders say, “The trend is your friend.” But spotting a real trend can be tricky, especially for first time traders and chart observers. You don’t need really fancy calculations or trading software to spot a trend in a market, and if you find it, don’t fight it.

Guess who bought the dip? That's right, the floor traders and the other professionals

If a market is really trending, there will always be reactions against the prevailing trend. Those are the signals most floor traders love. They know that many investors in the general public will fall for the "fade" nearly every time. So how do you know whether or not what you are seeing is a real trending market or not?

The basics are very simple. A market in an uptrend will likely have higher highs and higher lows. The opposite is true for a downtrend. Lower highs and lower lows tell you when the market is in a downtrend.

You never want to go against these situations.

IMPORTANT TRADING RULES:

1) We never get long or buy in a downtrending market.
2) We never sell or go short in an uptrending market.

It's just like stepping in front of a freight train.

A market on a move higher will attract new buyers and selling forces will help establish higher highs. When the price dips, more buyers will come in on what they perceive as a value entry point, delivering those higher lows. On the downside, selling pressure will cause lower lows and any move above those results in more sales, topping off those lower highs.

Find support and resistance and find trading opportunities
Once you have determined the overall trend, you can look for support and resistance points. Knowing these price levels can help you follow the trend, buying on dips in a market that might be trending higher or selling on pops when the prevailing trend is likely lower. It doesn't get any better than that!

Did you like this trading tip?  Click HERE for a technique Larry used to make over 1.9 million dollars in the market:

Best Trades to you,

Larry Levin
Founder & President- Trading Advantage 

Disclaimer: Trading in futures and options involves a substantial degree of a risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results.

Finding an Edge with Support and Resistance

Posted on by The INO.com Team

Today I would like to introduce Karen of Wealth Wizard World. Karen is an experienced trader who took an interest in the markets at a very young age has continued since then. Through her own blog and website, Karen shares what she has learned in her twenty-plus years and today she has agreed to share this knowledge with Trader's Blog readers as well.

===================================================================

I’ve traded for many years - about 20 to be precise. During the early years, I read everything I could get my hands on and tried several methods. The lessons learned were not what to do, but what not to do, and yet I was looking for something more.

There are lots of indicators to use and chart patterns to watch. What bothered me was that I realized that indicators lag. They respond to the movement of price.

Chart patterns work very well for some people, but they didn’t do much for me. I saw several head and shoulders patterns break to new highs; flags, pennants, and wedges break opposite of what they were supposed to do. What was an eager, studious, young trader supposed to do?

Continue reading "Finding an Edge with Support and Resistance" →

Sharing what I know with others ...

Posted on by The INO.com Team

One of the things I have always enjoyed, is sharing what I know with others. I have to thank my parents for teaching me the joy of sharing.

So it is in their memory, that I am excited to share with you, what I hope will be an informative, interesting and helpful series of trading lessons.

Video Link on next page

Continue reading "Sharing what I know with others ..." →