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In the final post on Dow Theory, we examine how Dow Theory applies as a broad market indicator. If you need to catch up, you can read the other two posts - An Overview of Dow Theory and Using Dow Theory to Identify Trends - by clicking the links. To some degree, this is a […]
Back to the post series on Dow Theory. Today, we’ll look at how to use Dow Theory when examining an investment. Dow Theory’s basic tenets actually lend themselves to a very successful market timing strategy, though some argue that it is a little too reactionary and not necessarily the most efficient way of timing in […]
Everyone has heard Cramer yell about his favorite stock, usually one which is in the middle of a big rally. And, he always finishes by warning you to buy on a pullback. But, what exactly is a pullback? The answer depends on your investment outlook - trader or investor, long-term or short term.
From a trader’s […]
Every person who graduated the third grade has heard of the Fibonacci numbers - 1, 1, 2, 3, 5, 8, 13, 21, etc. Each new number in the sequence is created by adding the two numbers preceding it. Surprisingly enough, this sequence has been studied by various cultures throughout history, but its first appearance in […]
In the last post, we went over how to draw proper trend lines. Today, we’ll look at how to use those trend lines to help inform your investing decisions.
Steepness
Trend line steepness gives you a measure of how quickly buying or selling pressure is accumulating. Furthermore, changes in steepness from one short-term (or sometimes intermediate term) […]
I realized that, in many of my recent posts, I’ve included graphs with trend lines drawn all over them, but I’ve never defined trend lines on this website. Trend lines are one of the fundamental tools used in technical analysis. All of technical analysis is predicated on the idea that prices trend in one direction […]
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