Stocks & Commodities V. 32:8 (30-35): Exploring Charting Techniques: Basic Chart Trading, Part 2 by Sylvain Vervoort

Stocks & Commodities V. 32:8 (30-35): Exploring Charting Techniques: Basic Chart Trading, Part 2 by Sylvain Vervoort
Item# V32C08_826VERV
$3.95
Availability: In Stock

Product Description

Exploring Charting Techniques: Basic Chart Trading, Part 2 by Sylvain Vervoort

Trends, Pullbacks, Reversals...

Pullbacks, swing reversals, breakouts, trend reversals — these are some of the things prices do. Here’s how you can recognize and trade them.

Last month in part 1 of this six-part article series, I discussed the basic chart types available to the investor, from line charts to bar charts to the modified renko charts that I use in my trading. In this article, I’ll provide an overview of how you can trade using charts.

MARKET TRENDS

The market is driven by bulls & bears. The bulls try to push prices higher while the bears try to pull prices lower. Markets have a tendency to continue in the direction that they have been moving and this is probably why more than 80% of breakout attempts in a trend fail.

Bull market

In Figure 1 you see a clear bull trend, but trends are not always this clear. If you are ever in any doubt about a trend, look for a breakout from a trading range. Typically, when you see a breakout like the one seen in the area shaded in green, it suggests a strong trend. Breakouts usually happen because of a result of positive economic news. After a strong trend, the market usually becomes weaker and moves within a channel (yellow shaded area).




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order