trading patterns

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New Crest mining Bullish Signal – NCM

Friday, March 20th, 2009

With all the uncertainty in the market, gold is having a brilliant bull run this week. So it stands to reason alot of the gold mining stocks are doing the same. NCM gave a fantastic Bullish signal today. Let’s build the case for a high probability bull go. The last 5 months buyers have been [...]

CBA Forming Inverted Head and Shoulder Pattern

Friday, March 20th, 2009

CBA has started to show some strength of late with a bearish reversal pattern on the weekly/daily chart. Just as a Head and Shoulder(H&S) pattern is a reversal for a down trend about to start, an Inverted H&S is a reversal for an up trend about to start. CBA has currently met the resistance of [...]

Materials Sector in a Bear Market – XMJ

Monday, March 16th, 2009

The Materials Sector has had a lot of people saying its brilliant investing as it’s holding its own now in this bear market. So let’s take a look and see what the charts are telling us. If looking at the daily chart of the materials sector (XMJ), it would be simple to see why so [...]

NAB Downtrend

Tuesday, March 10th, 2009

Since the beginning of the fall of the XAO in late 2007, many stocks have been back to lows not seen for quite some time. Today NAB clearly broke through a weekly support level with a bounce off a downtrend channel top, with increased volume. The weekly chart show there is no significant support to [...]

Trending Chanel – Trading Strategies

Thursday, March 5th, 2009

  Sometimes, the simplest and most obvious of strategies can give the best results. Here is one simple one that is producing many opportunities in this climate now. As a stock confirms a channel, identify the direction of up or down. If it is a down trending channel, look for small positions only and long [...]

Long Term Trade Opportunity

Thursday, March 5th, 2009

To consider a longer term trade, it’s best to find a stock that is at resistance for a small position and at support for a long position, before entering. Take a look at the example on STO to get an understanding of why. STO, when it produces an entry signal would be brilliant for a [...]

Double Top – Charting Patterns

Monday, March 2nd, 2009

Each week the XAO is breaking support and continuing to show us bearish signals, which support the medium term flag break target (identified 15/01/09) of around 2500. This week saw the confirmation of a double top. The neckline is a weekly support line that was breached on Monday, with the rest of the week re-testing [...]

Support and Resistance

Friday, February 27th, 2009

Support and Resistance lines taken from a weekly chart are considered to be stronger than medium term daily support. This is why taking a small term trade off these support levels give higher probability trades. Here is a case scenario built on ORI. Long Term trend is down. Medium term trend is down. Small term, [...]

Succesful Trading Using Chart Signals

Friday, February 27th, 2009

Waiting for confirmation of a chart’s signals is crucial to successful trading. Though a chart may show high probability signs of breaking one way, it is still possible for it to break in the opposite direction. WOW is a brilliant example of the above happening. Technically, the charts have been bearish on WOW for some [...]

Short Term Trading

Friday, February 27th, 2009

  Small term trading is generally my main focus in this blog, but the main techniques used to analysis small term trades can be applied to longer term trades. Peaks and Troughs are a reliable way of picking momentum change in a stock. CSL has had a momentum shift on the weekly chart. Higher Troughs [...]

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