There are dozens if not hundreds of technical patterns available to traders and investors. The question becomes where is your entry point and how do you manage the position. +
Common bullish continuation patterns include flags and pennants. A simple definition of these patterns would be a small pullback or consolidation before the prior move resumes. +
The Pennant pattern is very similar to a symmetrical triangle but the rules are slightly different. The specifics are not that important and getting stuck in the minutia of the technical rules will only slow you down. +
Your money management rules and emotional control will get you to the promised land. +Continue reading
Today was a strong Bullish trend day that yielded some great low risk entry’s coupled with some excellent Bear traps. I was long SPY in the morning for +$795.00 and long again in the afternoon for + $1,070. Positive +$1865 for the day. I’m happy with that but I did leave some money on the table with a few mistakes here and there.
The “Gotcha Bar” pattern is one of my favorite intraday setups. Here what I look for in a gotcha bar reversal.
The S&P 500 closed into resistance of 1,950-1,940 with a weak-form risk-on sentiment. The Markets finished in the green but defensive assets like bonds (TLT) did not sell off suggesting investors were not convinced and held on to their defensive positions.
The Markets gapped open and we strong form RISK ON most of the day. The Nasdaq and the Russell out performed and helped lift the markets to back into the 1928-1921 support structure. Oil continues to be buoyant and is approaching the $31.50 resistance level as I write this (6:25pm EST). The 2pm FOMC minutes revealed that the FED is may need to put a hold on additional rates increases with a slowing economy China’s weakening growth and increased market volatility.
It was another wild and volatile day that yielded some good trading opportunities.
*Disclosure: My SPY trades are all Paper trades using the Esignal platform. I experiment with positions size and money management techniques.
I made 4 trades today, one loser and three winners. I was fooled in the morning and started the day with quite a large loss.