All Entries Tagged With: "Momentum"
Reversal Characteristics & Candidates
Stocks can reverse suddenly or slowly. Sometimes it takes place in one big bar, and other times it’s a process that occurs over time.
Because there are differences in how downside reversals can happen, after running across a couple of reversal candidates in the charts, I wanted to share a couple here on the blog.
Uptrends will [...]
Scale Out of Winning Trades with Partial Exits
It’s common among traders to think that you either have to be all-in with a stock or all-out of a stock, but that sure isn’t the case.
Many of us do our buying in one piece, entering a full position at one time as an important level gets crossed.
Momentum Trading - A Different Mindset
After a lengthy period of indecisive, range-bound price action, we’ve seen the market gather some momentum in recent weeks. The push from the July low was rapid and relentless - clearly a change of character.
Psychology of Overbought, Oversold, and Market Extremes
Ever seen something get just a little overdone?
Perhaps it was that weekend barbecue, or the tattoo collection on that dude you saw the other day.
No doubt, we all run across the occasional extremes, and they’re usually worth a story or two.
Protect Capital Even in a Bull Market
This market sure has been strong - we have yet to see a pullback which has lasted longer than a few minutes!
Instead, we’ve merely seen brief pauses of sideways price action, which is quite nice…if you’re long.
Rip City - When Will We Rest?
Shorts are getting torched right now. The extreme momentum we’re seeing is definitely of the emotional variety, although it’s been technically significant as well.
We Now Interrupt Your Normal Programming
Perhaps the automatic buy button got disconnected somehow, but Wednesday’s decline marked the 3rd consecutive decline in as many days - something we’ve not seen since early March when this market caught fire for 9 very green weeks.
And although a 3-day losing streak is far from the worst thing this market could see, it begs [...]
