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Heiken Ashi Strategy: Trend Trading Unique Japanese Candlestick Chart Patterns

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Heiken Ashi Strategy Japanese Candlestick Chart Patterns Trend Trading
Heiken Ashi Strategy Japanese Candlestick Chart Patterns Trend Trading

Heiken Ashi Strategy is a unique way to use Japanese Candlestick Chart Patterns for Trend Trading. I find it simplifies trading and creates very clear signals.

If you dive deep into Japanese Candlestick Chart Patterns you’ll find it can get overwhelming. While they’re very helpful, they have to be read in the context of the entire chart and they are not to be used for trend trading (as many traders mistakenly think).

I like the Heiken Ashi Strategy because it takes the true power of Japanese Candlestick Chart Patterns and

  1. Simplifies the signals.
  2. Is easy to read even for beginners … when you know how, as I’ll demonstrate for you in the video below.

What do YOU think about this Heiken Ashi Strategy Japanese Candlestick Chart Pattern for Trend Trading? Enter your answer in the COMMENTS section at the bottom of this page. 

PLEASE “PAY IT FORWARD” BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons above, or at the very bottom of this article.


VIDEO TRANSCRIPT:

Welcome to this video on Trend Trading Stock Market with the Heiken Ashi Strategy. Today we are going to show you how to identify trend with a different type of Japanese Candlestick Chart Patterns. The nice thing is that it really is able to show you trends much more simply and clearly. I simplify down to really 3 patterns.

ONE: BULLISH TREND TRADING OF THE HEIKEN ASHI STRATEGY

The first one is your bullish pattern. I’ve got my bars colored green and red. A lot of times though, the up moves will be hollow and the down moves will be filled in with whatever color. So a bullish candle, a very bullish candle is something like well all of these actually. Where it’s green, or the close is above the open, and there is no wick at the bottom. That’s the key.

But on the Heiken Ashi Strategy bars, when there is no wick at the bottom, then, and its colored green on my case. Then that is a bullish trending up bar. So very important, very cool, very easy to read. You know, just simplifies things. That’s what I like about these is it simplifies things.

TWO: BEARISH TREND TRADING OF THE JAPANESE CANDLESTICK CHART PATTERNS

The second type of bar is exactly the opposite. That would be a red bar like this. It’s going down, and you’ll have wicks at the bottom but no wick on the top. Now these are rather narrow range. So another aspect of this is, what’s the range of the bar. The wider the range, the more trending they tend to be. So these are still pretty narrow range.

Also let me add here that you need to take these into consideration along with other things on the chart. I would never trade the Heiken Ashi strategy of nay Japanese candlestick chart patterns alone. Moving averages, for example here I’ve got this black line, the 15 EMA. This green line is the 50 Simple Moving Average. Whatever indicators that you want to use. Support resistance, trend lines, whatever you use, use this in conjunction with them.

So those are your 2 primary types of bars.

THREE: THE 3RD TYPE OF HEIKEN ASHI STRATEGY

Now the 3rd type of bar is where you have wicks above and below the real body. The real body, if you are not familiar with it, is the colored part of the bar. Here we have, slightly red, here we have that’s slightly green. But we’ve got wicks above and below the real body of the bar. You’ll hear a lot of people say that indicates a trend trading change. I disagree with that.

I don’t always teach the classical stuff, I teach you what comes from my experience. And so I just consider those basically neutral bars. And some of the people who talk about this little more knowledgeably than others, they will say that they are neutral bars, but neutrality comes before trend change.

But I just think it’s a bad idea to put the idea that a trend change is going to occur just because you have neutrality. You can get neutrality like here for example actually. This is a great example of it where the market just takes a little rest and then resumes trend trading up. That’s a very common thing.

COMPARING HEIKEN ASHI STRATEGY BARS WITH TRADITIONAL JAPANESE CANDLESTICK CHART PATTERNS

We have regular candlestick bar chart on the right, same market. And what you see here is that the patterns are very different. So let’s go back and look at the patterns that we talked about. So here is a bullish bar with no wick on the bottom. Well if we go over here, we’ve got a big wick on the bottom. Okay, tremendously huge wick below the real body. So is this signal better than that one? Not necessarily better or worse. Again that is a bullish candlestick pattern. They are just different, you read them differently. We don’t want any wick below here for it to be an up trend.

And you know if you look at this, you can just kind of see that for example in here, might be a little confusing. Oh here is another interesting point. So we’ve got gaps here, we get a gap there, we get a gap here. Now on the Heiken Ashi charts, you have no gaps. No gaps. So if you love to read gaps, then either have a regular candlestick bar next to it, or just don’t trade Heiken Ashi because it’s not going to give you gap signals.

The way I look at it as long as we get a run like this, where there’s no wicks at the bottom, until there. There is really no reason to get out. Okay, and that’s what this is great for. Really works best in trend trending environments. It simplifies the looking at your charts and identifying trends.

DON’T EXIT YOUR TREND TRADING TOO SOON

It creates nice smooth patterns when we get into trends, and for example, here is another thing, you’ll look at something like this over here, and you might, you know you might get scared out of your position here. Whereas over here, it’s still showing, nope it’s still bullish.

This is your first signal that okay, maybe things are weakening here a little bit, and then it resumes, and continues right on back up. So that to me is not bearish, that’s not a reversal signal. I think that’s crazy, when people talk about it. But it’s pausing and markets often do that. Right, they move up and then they pause. They wait. And that reflects the psychology of the people trading the markets is.

The more the market goes, people start to get a little nervous. And they say well, ‘Can this really continue going?’ People have a little hesitation now. Not feeling as certain as before. And we see that reflected in the charts. So charts are the map of the market psychology. And so you see peoples’ mass psychology, their actions reactions mapped on the charts.

TRY IT FOR YOURSELF

So hey, try it. Put it on a chart, look at a few charts, use it with other tools that you are using, and see what you think. See if you think this could be a good addition to your trading.

What do YOU think about this Heiken Ashi Strategy Japanese Candlestick Chart Pattern for Trend Trading?
Enter your answer in the COMMENTS section at the bottom of this page. 

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons below.

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Also I am giving away one of my favorite chart patterns that works today. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

Those interested in stock Forex trading for beginners and the best support and resistance levels also showed in interest in this video:
http://www.topdogtrading.com/stock-market-trading-when-to-exit-a-trade/

Subscribe to my YouTube Channel for notifications when my newest free videos are released by clicking here:
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Stock Market Cycles – How to Time Your Entries with Precision

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Stock Market Cycles
Stock Market Cycles

Stock market cycles are absolutely critical to understand because they tell you when to enter and when to exit the market.

Actually, when you think about it … isn’t that what trading is all about? When to get in and when to get out. All the other complicated theories, Forex indicators, E-mini price patterns aside, it really all just comes down to those to things:

  1. When do I buy?
  2. When do I sell?

What are YOUR thoughts about stock market cycles? Enter your answer in the COMMENTS section at the bottom of this page. 

PLEASE “PAY IT FORWARD” BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons above, or at the very bottom of this article.


VIDEO TRANSCRIPT:

Welcome to this video on Stock Market cycles. Barry Burns here with Top Dog Trading. Today we are going to make reference to a quote from W. D. Gann. He talked about markets being about the confluence of time and price. There’s a lot to be said about that.

For example if you look at a chart, it’s a 2 dimensional object. There’s only 2 dimensions, we’ve got price over here on the y axis and then at the bottom axis, of course the x axis we have time. What’s interesting is that a lot of people give a lot of emphasis on the price axis, the y axis. So these are for indicators, these are for support resistance, these are for candle stick patterns, price patterns.

STOCK MARKET CYCLES

The problem is that not as many people talk about the time axis. And it’s really a shame because it’s just as important. It’s 50% of the information on the 2 dimensional object we call a chart. And yet while there definitely is information out there about trading cycles, it tends to be very complex, very sophisticated and pretty much ignored by the majority of traders. So what happens when you ignore the time axis?

Here’s how a lot of people would experience it in practical ways in their trading. They look at this as an uptrend here and say that looks pretty good. Let’s look for the retrace. And they would see this as a retrace down and say, ‘Good, I am going to buy that.’ And you know there’s something to warrant that. For example one of the things here quite clearly is that we’ve got some resistance over here that becomes support aligned stock market cycles. And so you could draw that across as a horizontal line and say we have resistance. Resistance we got above it and now we are coming down to support to bounce of off that.

THE CONFLUENCE OF TIME AND PRICE

Okay so there is a reasonableness to taking that position, and so then you go long there and market goes up and then oh my gosh comes back down and it takes out this low. Guess what? That was not the right time to enter this market. That’s what happens in real life from a practical point of view is people get stopped out. Because they got in at this time instead of this time. And that makes a big difference.

Day traders and swing traders of stocks, Forex and futures end up getting stopped out of the market and that leads to a psychological challenge where you get kind of skittish. You’re saying gosh, it seems like somebody is trading against me, somebody is watching my trades, and my broker or somebody is just watching my trades and taking the opposite sides of my trade.

BUYING THE LOWEST LOW AND SELLING THE HIGHEST HIGH

The market goes forward, then it finally goes up. Okay, so the right time to enter this market was this time right here. That’s where you get your lowest low before the market resumes its uptrend. So one of the ways that people use to measure stock market cycles from the most, it would seem like obvious ways, and some trading platforms actually have this type of tool as a cycle tool, is to look in history. And ask yourself what would have been the cycle lengths in the past.

We could go from this low to this low, by the way in traditional cycle analysis, cycles are always measured from low to low. Whether it’s an uptrend or a downtrend. I personally don’t subscribe to that but that’s traditional cycle analysis.

This cycle low to that cycle low is 22 bars. Then if we go from that cycle low to that cycle low, its 26 bars. Pretty close, pretty close. Not too bad. And then if we go to the next cycle low, now we are at 28 bars. So we have 28, a 26, a 22. They are getting longer, aren’t they? So the difference between 22 and 26 and 28 and that seems like a lot, but between 22 and 26, is a fairly decent percentage. Could be kind of hard to time that.

THE MARKETS ARE NOT TAME

In fact if we looked at this cycle low, guess what, we might think using this technique of looking for cycles to be about the same, you might think that is the cycle low because it’s within one bar of the previous cycle. And so that would be very deceiving. And the reason that this happens is that cycles expand and contract. They are not consistent. The markets are not that neat and tidy, they are very challenging. They are not like a tamed purse puppy. Markets are more like a wild tiger that even if you thinks it’s your friend for a while, it will actually never be domesticated.

So stock market cycles are like that and that’s one of the things that make cycles so challenging. It’s really one of the harder things in technical analysis to do. And there’s actually a lot of very impressive work that’s done on it mathematically. I don’t personally subscribe to most of it. What I have found is that the best way to measure cycles, actually you have to do it in real time. Past history, really in my opinion has nothing to do with what cycles are going to come up in the future.

I don’t have time to go into all of it because I try to keep all these videos under 10 minutes. But basically we are in real time, looking for momentum shifts. So we are looking for strength to go up, strength, strength, strength, then we are looking for a weakness. For the momentum to shift here. And momentum is velocity times mass. So that’s the speed of market orders and volume of the market.

STRONG CYCLES

And once, so we get strength, as soon as we get weakness, we look for a stock market cycles high there. And then the same thing, when it comes down we look for strength coming down until it gets weak and then we look for shift to go back up. Now this assumes several different things and it can’t be taken in isolation. We use cycle analysis with other tools. And this is just one way that cycles are shown. It’s not the only way. In other words, sometimes we actually, at end of the cycle high or cycle low with spike volume bars and that’s a very well-known phenomenon.

As opposed to the market getting weaker, it actually shows exhaustion. So it’s the exact opposite. It’s a big thrust that’s unsustainable. But it’s either normally one or the other. Those are the ones that are tradeable. So the market puts in cycle highs and cycle lows that don’t provide high probability trades. We are not trying to be right and find every cycle high and cycle low.

Trading what’s going to happen from here, that’s challenging. And so when we actually take the trades as opposed to just analyzing history, that’s where we look for momentum shifts, in other words momentum is going down and then it gets weak, and that’s when we look forward to shift back up. So you do this with the other energies in the market.

So price is much easier. Price is simply using the support resistance levels that are the most common things. So floor trader pivots, Fibonacci levels. You can use moving averages, I call that dynamic support resistance, if you’re day trading, the previous day’s high, low and close are very important. For long term trading 52 week highs and lows. And very important are major major previous swing highs and lows. So those would be the primary support and resistance levels.

HOW DO YOU TIME YOUR ENTRIES AND EXITS?
 Enter your answer in the COMMENTS section at the bottom of this page. 

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons below.

FREE GIFT!

Also I am giving away one of my best Forex trading for beginners strategies that works today. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

Those interested in stock Forex trading for beginners and the best support and resistance levels also showed in interest in this video:
http://www.topdogtrading.com/stock-market-trading-when-to-exit-a-trade/

Subscribe to my YouTube Channel for notifications when my newest free videos are released by clicking here:
https://www.youtube.com/user/TopDogTrading?sub_confirmation=1

 

Forex Trading For Beginners: the BEST Support and Resistance Levels

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Forex trading for beginners
Forex trading for beginners

Forex trading for beginners provides a steep learning curve. This video on the best support and resistance levels will help speed up your Forex education to get you on the road to profits faster.

Support/Resistance zones are price levels that can cause the market to stop going up or down. Therefore they’re key areas for you as a trader to be aware of because they provide potential entry, exit and profit-taking levels.

What are YOUR best support and resistance levels? Enter your answer in the COMMENTS section at the bottom of this page. 

PLEASE “PAY IT FORWARD” BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons above, or at the very bottom of this article.


VIDEO TRANSCRIPT:

Welcome to the video on forex trading for beginners and this is Barry Burns with Top Dog Trading. Today we’re going to tackle a topic that is one of the first things I ever learned when I took a formal class in technical analysis. But I still rely on it heavily to this day, 49 years later.

Well actually my dad started teaching me and I was eight years old so I think I took that class like 20 years later but still a long time ago, long long time ago. And this is very basic stuff but as is true with many things, whether it’s sports or academics, or just life in general, the basic things are often the best. And so this is good, whether you’re a beginner, intermediate or advanced Forex trader.

BTW, this works equally well for trading stocks and futures!

THE BEST SUPPORT AND RESISTANCE LEVELS FOR FOREX, STOCKS AND FUTURES

We’re going to looking for support and resistance, and major highs and lows in the market that just stand out to the naked eye.

Markets are essentially a big huge international auction place and the more people that see a support/resistance level, the more participants are likely to respond to that support and resistance level. To buy off of it, to sell off of it, take profits into it, etc.. And so has a self-fulfilling prophecy.

It’s kind of funny, some people say, well that’s just a self-fulfilling prophecy, and my point is well but that’s exactly why it works. So why would you diminish that it’s just a self-fulfilling prophecy. In the markets, in the auction place, yeah people get excited about something or they are not interested, and that effects the price. Whether it’s driven up or whether it’s become stagnant. Has to lower. That’s exactly how markets work.

THE TOP DOG TRADING PRINCIPLE OF 3

We’ve got a high here. Market comes down, retest that once. Comes back, retest twice. Comes back, retest for the 3rd time. If the market does not go above that level after 3 retests, it’s likely not going to go, and again it’s just the psychology, the mass psychology.

I should say of the market where people are saying, you know the market has retested this price level now 3 times, and it hasn’t broken above it, it’s probably not going to. Why? Because people aren’t willing to pay more than that. They don’t see more value than that price level for, in this case the dollar yen. And so we’ve tried it 3 times, or we’ve retried it 3 times. Not going, so probably not going to go and so it goes down.

Now where does it go? It goes to the very next support level as defined by a major low. So let’s go back and see where that came from. It came from there but actually goes back before that. It actually goes all the way back to here and to here.

Again you see 1, 2, you can see these levels. The market came back to it again. 3, 4, comes off of it. Now this is what will often happen. So the market now, the other point of the Top Dog principle of 3 is that it works best when they are close together. Why, because that stays in the memory of traders.

So that’s pretty much the point. People are looking at it and saying, within a short period of time, relatively short period of time, where you can see it on the charts. These are some of the best support and resistance levels.

FOREX TRADING FOR BEGINNERS: THE CHART TELLS THE TALE

It’s all right there in the chart. And you see it. You don’t have to scroll back and look back a year or two. Then it’s right in people’s awareness and that’s the way it works. The principle of 3 does not work as well if it’s over a long period of time length. This is 2016 and we have to go all the way back here to, well going back over a year. So we are going back about a year. So therefore it’s not as readily available.

Will some people see it? Absolutely they will, and for that reason people did respond to it. So the market came down, 1, 2, 3. Tried it three times and then made a big move up. Because people gave up on shorting the market here. They thought okay well the market thinks its worth more than that. Market, meaning the market participants globally. This is one of the key principles for Forex trading for beginners to understand.

So yeah, it went up quite a bit, but then, boom. And this time it just slid right through. Now there’s one little bar there that shows that the market did acknowledge that support level and that is this one right here. It’s a very neutral bar. I just call that a bar of hesitation. So it didn’t bounce up of the level. It’s not a bullish bar, it’s not a bearish bar, it’s just that the market participants are again are like, ‘oh we know we are into this well-known support level’ and so for one day, the market hesitates.

EVEN THE BEST SUPPORT AND RESISTANCE LEVELS DON’T ALWAYS HOLD THE MARKET

Remember, even the best support and resistance levels are broken all the time. They don’t hold every single time. If they did, well the market would never be able to go anywhere right. So of course, support resistance is broken. But this, these are areas where we look to potentially buy, potentially sell, potentially take profits into. And you need to obviously use other things along with support resistance. You can’t use just support resistance alone. It’s one of the the four energies of my five energy methodology. It’s actually step 4 of 5 that we look at in my very rule based objective trading methodology.

By the way people often ask, ‘Well how do I know if the market’s going to hold support here, or break through it? great question. Very important question. Here’s the answer:

  1. Is it time for the market to put in a cycle low?
  2. Is this market moving down with tremendous strength or momentum?

And so if you are interested in my cycle indicator (which will help you know if it’s TIME for the market to put in a cycle low), I’ll be happy to share that with you. Just send me an email at Barry@TopDogTrading.com and I’ll be happy to share that with you absolutely free.

What are YOUR best support and resistance levels? Enter your answer in the COMMENTS section at the bottom of this page. 

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons below.

FREE GIFT!

Also I am giving away one of my best Forex trading for beginners strategies that works today. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

Those interested in stock Forex trading for beginners and the best support and resistance levels also showed in interest in this video:
http://www.topdogtrading.com/stock-market-trading-when-to-exit-a-trade/

Subscribe to my YouTube Channel for notifications when my newest free videos are released by clicking here:
https://www.youtube.com/user/TopDogTrading?sub_confirmation=1

 

Stock Market Techniques That Even Work For Dummies

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stock market techniques stock market for dummies
stock market techniques stock market for dummies

One of the most simple stock market techniques is to buy in early November and “in May, go away.” This is so reliable that even new traders who trade stock market for dummies can use it.

It’s a cyclical rotation in the stock market that has proved successful for many decades since the equity markets have tended to make the vast majority of their gains during that time. But that cycle doesn’t always work. Here’s how to determine if it will this year.

Last year (2016) that cycle was combined with 2 other important factors:

  1. An election year.
  2. Very significant support/resistance levels.

Now that we’re in May (maybe June when you read this) give your opinion as to whether you think the market will slow down, reverse or continue to go up as strongly has it has been. Enter your opinion in the COMMENTS section at the bottom of this page. 

PLEASE “PAY IT FORWARD” BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons above, or at the very bottom of this article.


VIDEO TRANSCRIPT:

Today we’re going to talk about the presidential election here in the good ole US last year and how it affected the stock market. Quite an interesting thing here which is not only important for the presidential election, but also some good trading lessons. So let’s look at what happened right around the elections.

The election was on November 8th, and for quite a while before the election, of course we are talking about who’s ahead in the polls, and so forth, it was a big big deal. One of the most interesting conversations.

Here’s the 7th and the 7th was the day before the election. Election was on November 8th. And as you can see here, the market rallied pretty dramatically. Get a big big bullish bar here after coming down a little ways from there to there, kind of a neutral bar here. That is a bottoming candle stick bar but still point is, before the election, the day before election, now if you are listening to the news, people are calling this the Clinton Rally.

STOCK MARKET TECHNIQUES THAT WORK DESPITE THE NEWS

The Clinton Rally, because all the polls, or almost all the polls, the vast majority opinion was that Hillary Clinton was going to win the election. And they, market participants, like to get in board or on board, before something happens. This is actually a part of DOW theory called “discounting the market. More commonly it’s known as buy the rumor and sell the news.  So People were buying the rumor, that Clinton was going to win, it was a sure thing, done deal. Over and out. And that the market must like Secretary Clinton. That it would rally so dramatically. I mean just compare this bar with the bars before. That is a very very bullish bar. It’s the most bullish bar in the chart for months.

They’re saying, oh the market likes that Secretary Clinton is going to win, because that’s the day before the election and everyone was sure that she was going to win. Okay, let’s see what happened after that.

This is the day of the election. So a little less enthusiasm. You know definitely still market moved up, made a higher high and a higher low. It closed above the open. Where did it go? It stopped at that red line. Now is that some magical numerological line? No that’s the 50 period simple moving average. That’s one of the most simple stock market techniques.

The 50 period simple moving average is one of the most commonly used moving averages, and so if you go back over here in time, you can see as well that the market held the 50 period simple moving average there as well. So when it comes to support resistance, you don’t really want to use things that are not used by other people.

SUPPORT AND RESISTANCE RULE THE DAY

Support resistance works for one reason, and the market logic as I call it, that support resistance works is because a lot of market participants see it, and the more people that see it react to it. Either buying or selling or profit taking. So when it comes to support and resistance, you don’t want to use anything secret. You want to use something that everybody sees because it has a self-fulfilling prophecy to it.

We see this all the time with 50 period simple moving average. I know it’s boring, there’s nothing exciting about it. But a lot of times, boring works. The simplicity works. We don’t have to be all fancy, in fact when I went to the Chicago Mercantile Exchange, hired a floor trader to work with me, got an apartment out there, my trading was really sophisticated.

I learned what he and his friends were doing, and it was frankly brain dead simple.I came back humbled because they were making a lot more money than I was. I just thought wow. Okay, I’ve got to really go back to simplicity and that’s what I did. So this is one of those things, the 50 period simple moving average. So okay, now let’s see what happened after that.

THE STOCK MARKET IS FULL OF SURPRISES

So that’s the day of election, then the day after election, BAM! Wait a minute, but Donald Trump won. And nobody was quite sure. Well by the time, the market closed on Tuesday, the day of the election, the results were not all in yet. but the day after election, the results were in and what. The market went up, so now they called it, guess what they were calling it on the news the next day. They were calling it the Trump Rally! They are calling it the Trump Rally on the news.

So we had a Hillary Rally here, and we had a Trump Rally here. And so the question is, did it really matter who won the election for the stock market? Either way, the market went up. And so it wasn’t the Clinton Rally, wasn’t a Trump Rally. It was just a rally. And there’s a reason that went up by the way. And it wasn’t because of Hillary or because of Donald. By the way we’ll just see what happened after that too. So market goes up, up, up. Actually need to rescale here now a little bit. And see where we are today.

Okay. So now we’ve gone up here. Market get more narrow range, volumes taper down a bit, and why? Because we’re at a horizontal support resistance level. Now horizontal resistance level just means a previous high. A previous high in the market. Again that’s something you always want on your charts. Because it’s very predictable that again everybody sees it, even a “stock market for dummies” trader sees it. Therefore as the market approaches it, people get more cautious and you don’t get a lot of buying into it.

DOES NEWS TRUMP TECHNICALS OR DOES TECHNICAL ANALYSIS TRUMP NEWS?

So why does this low actually come in? Well sometimes technical analysis can be a very amazing thing. So let’s see here. Let’s add another very very complicated secret, that is actually not a secret at all. So there it is. The 200 simple moving average. Let’s add that on, see what happens. Oh my gosh. Amazing. Isn’t it great to have these secret indicators right there.

That’s exactly where the market bottomed out, at the 200 simple period moving average. So those are two most commonly used moving averages, especially on daily charts, weekly charts and monthly charts that traders look at. 50 and 200. And guess what, it works. But why does it work? No magic to it. It’s just that everybody is watching it. So as price comes into those levels people are buying, selling and taking profits.

Those who were focused on the news may have missed out on this market move. But those trading simple stock market for dummies techniques could have stayed on the right side of the market by using simple technical analysis.

So I encourage you to have those two moving averages on your charts as part of your stock market techniques. I also include personally the 100 simple moving average and I also use the 15 exponential moving average. But these are the 2 primary ones that provide, very reliable support resistance for the market to bounce off of. So again you don’t always need super fancy stuff. Sometimes just staying with simplicity is actually the best thing, and it works.

STOCK MARKET FOR DUMMIES

This is why these can work for even those who think they are using stock market for dummies techniques. You’re not a dummy. You’re just keeping it simple, which is often the best thing to do!

Now that we’re in May (maybe June when you read this) GIVE YOUR OPINION as to whether you think the market will slow down, reverse or continue to go up as strongly has it has been. ENTER YOUR OPINION IN THE “COMMENTS” section at the bottom of this page. 

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