{"id":10037,"date":"2011-10-27T01:00:43","date_gmt":"2011-10-27T05:00:43","guid":{"rendered":"http:\/\/club.ino.com\/trading\/?p=10037"},"modified":"2011-10-26T12:00:00","modified_gmt":"2011-10-26T16:00:00","slug":"getting-technical-to-find-potential-trades","status":"publish","type":"post","link":"https:\/\/wwwtest.ino.com\/blog\/2011\/10\/getting-technical-to-find-potential-trades\/","title":{"rendered":"Getting Technical To Find Potential Trades"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft\" src=\"\/img\/sites\/ino\/email\/2466.jpg\" alt=\"\" width=\"200\" height=\"150\" \/>If you follow our blog, then you are definitely familiar with trader    Larry Levin, President of Trading Advantage LLC. We have gotten such a    great response from some of his past posts that he has agreed to share    one more of his favorite trading tips as a special treat to our  viewers.   Determining the direction of the market can be tricky and  just plain   confusing at times, but Larry\u2019s expert opinion keeps it  simple and   straight-to-the-point. If you like this article, <a href=\"http:\/\/www.tradingadvantage.com\/Trading-Tip-v1\/landingpage.php\" target=\"_blank\">Larry\u2019s also agreed to  give you free access to one of his top trading secrets.<\/a><\/p>\n<p>Today he's going to talk about using technical indicators to find potential trading opportunities.<\/p>\n<p>If you know your way around a price chart (Tip#5) then you are ready to learn a little more about technical analysis. This kind of analysis is defined as an attempt to try to forecast price movements based on patterns observed in price changes on charts, or other changes that are not rooted in fundamental observations.<!--more--><\/p>\n<p><strong>For technical analysts the key to observing the market lies in signals and patterns<\/strong><\/p>\n<p>Technical analysts (or technicians as they are sometimes called) are looking for all kinds of things in the rates of price changes, the patterns that price changes might be making, shifts in volume and open interest, and more! They are trying to find anything that could be used to show a potential trading opportunity - something that could help them forecast possible future movements. It is important to add a disclaimer here \u2013 Past performance is not necessarily indicative of future results. There is no way that finding a pattern or indicator in a chart will be a guarantee of what will happen in the market. They are all subject to the same personal bias and are just as fallible as any other forecasting method.<\/p>\n<p><strong>Why would anyone use technical indicators? <\/strong><strong> <\/strong><\/p>\n<p>Technical analysis is a means of trying to decipher the market trend or a possible reversal of that trend. Like any other kind of analysis, it is meant to be used in tandem with other observations, ideas, and fundamentals to give a bigger picture when planning possible trades. Even the most basic patterns in technical analysis can be used for trade entry and exit points. Here are some examples:<\/p>\n<p>An uptrend may be present when there are a run of trading periods with higher high prices and higher low prices. Identify an uptrend, and you might get an idea for a long trade. A downtrend could be characterized by a period with lower highs and lower lows. At that time, you might want to find a place to play a short trade. If the market is seeing pretty equal highs and lows, it could be stuck in a sideways trend or channel. Even those have trading opportunities since the high spots could be identified as overhead resistance, where prices will go and then stop and retreat as selling enters the market. The low prices could be showing you key areas of support when the prices get to a point where buying occurs and the market doesn\u2019t seem to go any lower.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"\/img\/sites\/ino\/email\/4015.jpg\" alt=\"\" width=\"624\" height=\"456\" \/><\/p>\n<p>Past performance is not necessarily indicative of future results. Chart courtesy of Gecko Software.<\/p>\n<p>Support and resistance offer interesting entry <em>or <\/em>exit opportunities. It would be a much more improbable trade if you decided to go long (buy a contract) right as the market was hitting an area of potential resistance. Likewise, it might be riskier to enter a sell order just as the market is getting to an area previously known as support. This isn\u2019t to say that your trade wouldn\u2019t work, it is just good to know these spots and understand what is behind them \u2013 it\u2019ll make designing your trade a little more effective. Perhaps you would want to play these areas in case support or resistance is forecast to be broken based on your fundamental analysis or a piece of news due out in the market; or, perhaps other technical signals are telling you that the trend is about to be broken. Here are some other basic signals technicians might look for:<\/p>\n<p>Head and shoulders patterns are formed when the market prices make a peak (first shoulder) and then decline, subsequently rise above the former peak (the head) and decline again, and finally make another peak (shoulder) not higher than the head and decline once more. This pattern is seen as a possible trend reversal. It is a bearish pattern in an uptrend.<\/p>\n<p>Inverse or reverse head and shoulders are also possible, marked by spikes downwards and then recovery resulting in the reverse should-head-shoulder pattern described above. This is seen as a bullish pattern if it occurs in a downtrend.<\/p>\n<p>Triangles, pennants and flags are also key patterns technicians keep an eye on. They can be bullish or bearish depending on the prevailing trend and the way they are formed. Flags and pennants are seen as signals of a continuation where the market sees a kind of consolidation of action before making a move in another leg of the trend. Volume also comes into play with flags and pennants, usually lower or weakening volume.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"\/img\/sites\/ino\/email\/4016.jpg\" alt=\"\" width=\"636\" height=\"468\" \/><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"\/img\/sites\/ino\/email\/4017.jpg\" alt=\"\" width=\"635\" height=\"468\" \/><\/p>\n<p><strong>Find patterns, find a trade <\/strong><\/p>\n<p>If you can back up your trading bias with actual technical observations or patterns that might indicate the market is trending or about to see a reversal, then you have a trading opportunity! Rather than boldly (and blindly) placing buy or sell orders and hoping the market moves in your favor, taking the time to learn and understand how the market behaves can make or break your trade design. Other people are looking at the same information and furthering your education can never really be a bad thing!<\/p>\n<p><a href=\"http:\/\/www.tradingadvantage.com\/Trading-Tip-v1\/landingpage.php\" target=\"_blank\">Click here to see one of Larry\u2019s top trading secrets!<\/a><\/p>\n<p>Best Trades to you,<\/p>\n<p>Larry Levin<br \/>\nFounder &amp; President- Trading Advantage<br \/>\n<span \n                data-original-string=\"XDEH6XJ7CGm33VrZzZ2OM3uWcuNxeOQIeaVaLn8Rfwo=\"\n                class=\"apbct-email-encoder\"\n                title=\"This contact has been encoded by Anti-Spam by CleanTalk. Click to decode. To finish the decoding make sure that JavaScript is enabled in your browser.\"><br \/>\n        <span class=\"apbct-ee-blur-group\"><br \/>\n            <span class=\"apbct-ee-blur_email-text\">la***@tr**************.com<\/span><br \/>\n            <span class=\"apbct-ee-static-blur\"><br \/>\n                <span class=\"apbct-ee-blur apbct-ee-blur_rectangle-init\"><\/span><br \/>\n                <span class=\"apbct-ee-blur apbct-ee-blur_rectangle-soft\"><\/span><br \/>\n                <span class=\"apbct-ee-blur apbct-ee-blur_rectangle-hard\"><\/span><br \/>\n            <\/span><br \/>\n            <span class=\"apbct-ee-animate-blur\"><br \/>\n                <span class=\"apbct-ee-blur apbct-ee-blur_rectangle-init apbct-ee-blur_animate-init\"><\/span><br \/>\n                <span class=\"apbct-ee-blur apbct-ee-blur_rectangle-soft apbct-ee-blur_animate-soft \"><\/span><br \/>\n                <span class=\"apbct-ee-blur apbct-ee-blur_rectangle-hard apbct-ee-blur_animate-hard\"><\/span><br \/>\n            <\/span><br \/>\n        <\/span><br \/>\n<\/span><\/p>\n<p>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.<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. We have gotten such a great response from some of his past posts that he has agreed to share one more of his favorite trading tips as a special treat to our viewers. Determining the direction [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":41,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[3675,3674,848,847,7948,4105,2913,1585,306,102,9,3579,327,3178],"class_list":["post-10037","post","type-post","status-publish","format-standard","hentry","category-general","tag-bearish-market","tag-bullish-market","tag-charing-pennants","tag-charting-flags","tag-guest-bloggers","tag-key-patterns","tag-larry-levin","tag-support-and-resistance","tag-support-level","tag-technical-analysis","tag-technical-indicators","tag-trading-advantage","tag-trading-tips-techniques","tag-trends"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v23.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Getting Technical To Find Potential Trades - INO.com Trader&#039;s Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ino.com\/blog\/2011\/10\/getting-technical-to-find-potential-trades\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Getting Technical To Find Potential Trades - INO.com Trader&#039;s Blog\" \/>\n<meta property=\"og:description\" content=\"If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. We have gotten such a great response from some of his past posts that he has agreed to share one more of his favorite trading tips as a special treat to our viewers. Determining the direction [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ino.com\/blog\/2011\/10\/getting-technical-to-find-potential-trades\/\" \/>\n<meta property=\"og:site_name\" content=\"INO.com Trader&#039;s Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/inocom\/\" \/>\n<meta property=\"article:published_time\" content=\"2011-10-27T05:00:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2011-10-26T16:00:00+00:00\" \/>\n<meta name=\"author\" content=\"The INO.com Team\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"The INO.com Team\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.ino.com\/blog\/2011\/10\/getting-technical-to-find-potential-trades\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.ino.com\/blog\/2011\/10\/getting-technical-to-find-potential-trades\/\"},\"author\":{\"name\":\"The INO.com Team\",\"@id\":\"https:\/\/www.ino.com\/blog\/#\/schema\/person\/d86a8cce826b7bd105200d88bb28a280\"},\"headline\":\"Getting Technical To Find Potential Trades\",\"datePublished\":\"2011-10-27T05:00:43+00:00\",\"dateModified\":\"2011-10-26T16:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.ino.com\/blog\/2011\/10\/getting-technical-to-find-potential-trades\/\"},\"wordCount\":1019,\"commentCount\":6,\"publisher\":{\"@id\":\"https:\/\/www.ino.com\/blog\/#organization\"},\"keywords\":[\"bearish market\",\"bullish market\",\"charing pennants\",\"charting flags\",\"Guest Bloggers\",\"key patterns\",\"Larry Levin\",\"support and resistance\",\"support level\",\"technical analysis\",\"Technical Indicators\",\"Trading Advantage\",\"Trading Tips &amp; Techniques\",\"trends\"],\"articleSection\":[\"General\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.ino.com\/blog\/2011\/10\/getting-technical-to-find-potential-trades\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.ino.com\/blog\/2011\/10\/getting-technical-to-find-potential-trades\/\",\"url\":\"https:\/\/www.ino.com\/blog\/2011\/10\/getting-technical-to-find-potential-trades\/\",\"name\":\"Getting Technical To Find Potential Trades - INO.com Trader&#039;s Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.ino.com\/blog\/#website\"},\"datePublished\":\"2011-10-27T05:00:43+00:00\",\"dateModified\":\"2011-10-26T16:00:00+00:00\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.ino.com\/blog\/2011\/10\/getting-technical-to-find-potential-trades\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.ino.com\/blog\/#website\",\"url\":\"https:\/\/www.ino.com\/blog\/\",\"name\":\"INO.com Trader&#039;s Blog\",\"description\":\"Expert Charts, Trading Tips and Technical Analysis from INO.com\",\"publisher\":{\"@id\":\"https:\/\/www.ino.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.ino.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.ino.com\/blog\/#organization\",\"name\":\"INO.com Trader&#039;s Blog\",\"url\":\"https:\/\/www.ino.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.ino.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.ino.com\/blog\/wp-content\/uploads\/2018\/12\/inologo-400.jpg\",\"contentUrl\":\"https:\/\/www.ino.com\/blog\/wp-content\/uploads\/2018\/12\/inologo-400.jpg\",\"width\":400,\"height\":472,\"caption\":\"INO.com Trader&#039;s Blog\"},\"image\":{\"@id\":\"https:\/\/www.ino.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/inocom\/\",\"https:\/\/www.linkedin.com\/company-beta\/1056449\/\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.ino.com\/blog\/#\/schema\/person\/d86a8cce826b7bd105200d88bb28a280\",\"name\":\"The INO.com Team\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.ino.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/cb06ce065c1db526fc31f4d08d898a30?s=96&d=identicon&r=pg\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/cb06ce065c1db526fc31f4d08d898a30?s=96&d=identicon&r=pg\",\"caption\":\"The INO.com Team\"},\"url\":\"https:\/\/wwwtest.ino.com\/blog\/author\/the-ino-com-team\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Getting Technical To Find Potential Trades - INO.com Trader&#039;s Blog","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.ino.com\/blog\/2011\/10\/getting-technical-to-find-potential-trades\/","og_locale":"en_US","og_type":"article","og_title":"Getting Technical To Find Potential Trades - INO.com Trader&#039;s Blog","og_description":"If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. We have gotten such a great response from some of his past posts that he has agreed to share one more of his favorite trading tips as a special treat to our viewers. Determining the direction [&hellip;]","og_url":"https:\/\/www.ino.com\/blog\/2011\/10\/getting-technical-to-find-potential-trades\/","og_site_name":"INO.com Trader&#039;s Blog","article_publisher":"https:\/\/www.facebook.com\/inocom\/","article_published_time":"2011-10-27T05:00:43+00:00","article_modified_time":"2011-10-26T16:00:00+00:00","author":"The INO.com Team","twitter_card":"summary_large_image","twitter_misc":{"Written by":"The INO.com Team","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.ino.com\/blog\/2011\/10\/getting-technical-to-find-potential-trades\/#article","isPartOf":{"@id":"https:\/\/www.ino.com\/blog\/2011\/10\/getting-technical-to-find-potential-trades\/"},"author":{"name":"The INO.com Team","@id":"https:\/\/www.ino.com\/blog\/#\/schema\/person\/d86a8cce826b7bd105200d88bb28a280"},"headline":"Getting Technical To Find Potential Trades","datePublished":"2011-10-27T05:00:43+00:00","dateModified":"2011-10-26T16:00:00+00:00","mainEntityOfPage":{"@id":"https:\/\/www.ino.com\/blog\/2011\/10\/getting-technical-to-find-potential-trades\/"},"wordCount":1019,"commentCount":6,"publisher":{"@id":"https:\/\/www.ino.com\/blog\/#organization"},"keywords":["bearish market","bullish market","charing pennants","charting flags","Guest Bloggers","key patterns","Larry Levin","support and resistance","support level","technical analysis","Technical Indicators","Trading Advantage","Trading Tips &amp; Techniques","trends"],"articleSection":["General"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.ino.com\/blog\/2011\/10\/getting-technical-to-find-potential-trades\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.ino.com\/blog\/2011\/10\/getting-technical-to-find-potential-trades\/","url":"https:\/\/www.ino.com\/blog\/2011\/10\/getting-technical-to-find-potential-trades\/","name":"Getting Technical To Find Potential Trades - INO.com Trader&#039;s Blog","isPartOf":{"@id":"https:\/\/www.ino.com\/blog\/#website"},"datePublished":"2011-10-27T05:00:43+00:00","dateModified":"2011-10-26T16:00:00+00:00","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.ino.com\/blog\/2011\/10\/getting-technical-to-find-potential-trades\/"]}]},{"@type":"WebSite","@id":"https:\/\/www.ino.com\/blog\/#website","url":"https:\/\/www.ino.com\/blog\/","name":"INO.com Trader&#039;s Blog","description":"Expert Charts, Trading Tips and Technical Analysis from INO.com","publisher":{"@id":"https:\/\/www.ino.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.ino.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.ino.com\/blog\/#organization","name":"INO.com Trader&#039;s Blog","url":"https:\/\/www.ino.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.ino.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.ino.com\/blog\/wp-content\/uploads\/2018\/12\/inologo-400.jpg","contentUrl":"https:\/\/www.ino.com\/blog\/wp-content\/uploads\/2018\/12\/inologo-400.jpg","width":400,"height":472,"caption":"INO.com Trader&#039;s Blog"},"image":{"@id":"https:\/\/www.ino.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/inocom\/","https:\/\/www.linkedin.com\/company-beta\/1056449\/"]},{"@type":"Person","@id":"https:\/\/www.ino.com\/blog\/#\/schema\/person\/d86a8cce826b7bd105200d88bb28a280","name":"The INO.com Team","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.ino.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/cb06ce065c1db526fc31f4d08d898a30?s=96&d=identicon&r=pg","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/cb06ce065c1db526fc31f4d08d898a30?s=96&d=identicon&r=pg","caption":"The INO.com Team"},"url":"https:\/\/wwwtest.ino.com\/blog\/author\/the-ino-com-team\/"}]}},"_links":{"self":[{"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/posts\/10037"}],"collection":[{"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/comments?post=10037"}],"version-history":[{"count":0,"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/posts\/10037\/revisions"}],"wp:attachment":[{"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/media?parent=10037"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/categories?post=10037"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wwwtest.ino.com\/blog\/wp-json\/wp\/v2\/tags?post=10037"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}