"Chart Reading" Posts

Where is Dow Heading According to Basic Chart Patterns and STOPD?

By Lawrence
Dow Daily_20160504_112603

Sometimes it is better to look at the big picture from afar to gain better perspective. Here is the weekly chart of Dow Jones Industrial Average. FOMC Week Tendency The blue arrows mark the week for which we have FOMC meetings and announcements. Do you know that historically it is very likely within 2 meetings […]

Emini S&P500 Putting Year 2015 In Proper Perspective Oct 18, 2015

By Lawrence

Here is the 15-min RTH only chart of Emini S&P500 since last year’s spike low in October.   Importance of First Quarter Range The purple STOPD scale highlights the first quarter range of the year. Notice that the false breakout in 2nd quarter of the year gave us a nice drop to 1st quarter midpoint. […]

The Real Secret of Trend in Day Trading: Finding the Point of No Return

By Lawrence

We often hear traders talking about trend – trend is your friend, do not fight the trend, etc. Yet we seldom hear a room full of traders agree upon what the current trend is. This casual observation leads many people to believe price based analysis (I hate the term technical analysis) is not really that […]

Bitcoin: Where to Go From Here Dec 2014

By Lawrence

Following is the weekly chart of Bitcoin. 75 / 75 is a classic chart pattern where an immature market crashed hard but holding the absolute 25% price level off the extreme high for a long time. As long as the 25% level continues to hold, the market will eventually climb out of this bottom and […]

Free Bitcoin Online Resources

By Lawrence
bitcoin online resources

Many readers emailed me asking for more information about Bitcoin and where they can learn more about it. Well, there are many options to choose from. Here is a short list to some free resources online. Data Aggregation The most comprehensive data source is Bitcoin Charts. Bitcoin Charts has some very basic charting but its […]

Complex Chart Patterns Are Just Combinations Of The Simpler Ones

By Lawrence

Part of Art of Chart Reading Many traders are obsessed with the idea that there exists secret uber chart patterns that produce superior returns with virtually no risk involved. If you are one of them, you should reread what I have written from the beginning of this series. Maybe there exists such patterns but it […]

The Motive Of This Questionable Article

By Lawrence

A piece from Reuters, Anatole Kaletsky: The new long-term bull market ahead, hits the websites today. Someone who has no expertise in trading nor chart reading writes about "breakout" from a major news outlet. The ultimate top for centuries to come is probably here.

WTF Chart of the Day: Boeing’s 10 Year STOPD Play

By Lawrence
WTF BA_20130715_185710

Boeing has been the news darling this week for, well, bad reasons. What does its chart tell us? 1. Very clear 10-year full swing up and down cycle. 2. Blue horizontal lines highlight the 10 year range from 1990 to 1999. 100% expansion of the range in red. 3. Dark red horizontal lines highlight the […]

WTF Chart of the Day: Emini S&P and Its Moving Averages

By Lawrence
WTF Emini S&P_20130704_115616

Following is the Emini S&P continuous contract with RTH only data. I have marked the days with matching color to the moving averages where ES has tagged. Contrary to other traders, this levitation of ES today is not a surprise to me. This dance of ES price between 2 major moving averages often produce very […]

Smilingsynic: Five Minute Flip (FMF)

By Lawrence

Smilingsynic is a long time member of this site. He is a good Emini S&P daytrader. Many members like to learning more about his Five Minute Flip (FMF) concept after reading his comments in our real-time chat room. Smilingsynic generously squeezed some of his time to create this detail presentation (76 slides!) on his Five […]