Become a Better Chart Reader and Multiple Time Frames

Written on 03-12-2006 8:42 am by Craig

Trading Multiple Time Frames

The new page is up on multiple time frames.

"Looking at multiple time frames can give you a better idea of what is happening with a stock. For swing trading, we can break this down into 4 time periods. The daily, weekly, 60 minute, and 5 minute time frames. Read more."

A couple other tidbits of info...

Elliott Wave International is starting FreeWeek again on Tuesday December 5th. No sign up necessary; no User ID, no password. Just bookmark the page.

Here is what you get:

Daily Futures Junctures - Each day, Senior Commodity Analyst Jeffrey Kennedy serves up the most promising opportunity in commodities, complete with a clearly labeled chart, analysis and sample trading strategy.

Monthly Futures Junctures - You get access to the 12-page November issue with Jeffrey's long-term forecasts and analysis for all the major commodity markets, plus his highly popular "Trader's Classroom" feature.

I'm finally beginning to get over the flu. WOW. This one was real bad. Have a great week and stay away from sick people!

Written on 07-12-2006 9:36 am by Craig

7 Sure-Fire Ways to Become a Better Chart Reader

Chart reading can be confusing for new traders. There seems to be so many things to look for on a chart. But over time, it gets a whole lot easier and faster. Here are 7 factors to look for when you are analyzing your next chart.

1. Map Out Support and Resistance Areas

Look to the left. Find where prices found support or ran into resistance in the past. It's likely that it may rally or fall at these same price levels in the future. There are times when you find a perfect set-up only to realize that the stock won't likely go very far because of a strong resistance area. This results in bad risk/reward.

2. Look for Patterns Within Patterns

You see a nice cup with handle pattern spanning 6 months. The stock has just completed a swing trap with a T-30 in the handle. 3 patterns are now running in your favor for a bullish move to the upside. A quick glance at the intra-day chart and you notice a symmetrical triangle getting ready to break out. This is a gift. Accept it!

3. Identify the Extremes

Because that's where the money is.

4. Find the Beginning of the Trend

How far is the stock from the beginning of the trend? The trade gets more treacherous the further it moves from the beginning. Whipsaws and false moves are the norm. Look for those pullbacks near the beginning of the trend. Those tend to me more reliable and less prone to these fake outs.

5. Get Into Their Heads

Think about how other traders are feeling right now by looking at the candles. Are the momentum traders getting nervous? Are the novice traders selling? Are the breakout traders taking profits? Understanding the psychology behind a stock chart is key to anticipating the future direction.

6. Look for Wide Range Candles

A stock has been trading sideways for months. Then it breaks out and a sudden wide range candle appears. These candles print significant turning points on a chart. The outlook on the stock has changed. Smart traders see it and are looking to establish positions quickly. These sudden candle formations mark the beginning of new trends.

7. Watch Volume Increase at Key Turning Points

Volume precedes price. Find out if interest is picking up in a stock by looking for volume to increase at strong support or resistance areas. You'll notice this as volume will be higher than the previous day. This is an alert that buyers (or sellers on the short side) are coming into the stock.

Find out more about reading stock charts and download the e-book here.

Written on 23-12-2006 10:44 am by Craig

Last Post Of 2006

I haven't posted in awhile but I have been real busy with the holidays right around the corner (as I'm sure most of you have been also!) I love this time of year, but it really gets hectic doesn't it?

I have some new things planned for this website in 2007. Here are a few things...

• A completely re-designed website (working on that now) loaded with tons of new "stuff". And I still have many more patterns to add to the chart patterns page.
• A new e-book full of swing trading tips and tricks.
• Some more features that are top secret ;)

All of these new things will be added with one goal in mind:

To help us all make 2007 the most profitable year yet!!

Have a Merry Christmas!!!

One more thing...

Looking for a last minute gift idea? My website company is offering a 2 for 1, buy one get one free holiday special. Buy a website for yourself (you deserve a gift also!) and give the other one as a gift.

See ya soon!