Blog Posts Tagged with Technical Analysis

Why SwingTradeBot's ADX Values May Differ from Those of Some other Financial Sites

An exploration of how SwingTradeBot calculates its ADX indicator.

Trade School: Exploring the Impact of the Bearish Engulfing Pattern

Here's another really good video from Dr. Duru. In addition to doing an insightful technical analysis review he also shows how he uses the following SwingTradeBot features:

How Bollinger Bands (and Stochastic) Helped Navigate the Market in 2018

I meant to write this over the weekend when I was going through charts and noticed how the S&P 500 has been bouncing between its upper and lower Bollinger Bands since February.  So here's the chart, which I've annotated to identify some key turning points (you can click the chart to get a larger version):

Here's Why I Track the Percentage of Stocks Above Their 50-Day Moving Averages

If you've visited the General Market Overview page or watched my Chart Notes page for a while you've seen the % of Stocks Above Their 50-Day Moving Averages indicator. 

Check Out: Chart Summit, a Virtual Conference on Technical Analysis

I'm looking forward to watching some of the presentations over at Chart Summit, a virtual conference of technical analysis.  I've been a fan of Brian Shannon's for over a decade and I met Chris Kimble at Stocktoberfest a couple of years ago after watching his impressive talk.  So I already know their talks will be great.  Judging by some of the talk titles, those videos should be helpful to folks new to technical analysis in figuring out ways to use SwingTradeBot's scans & signals.

Here's the email I got announcing the availability of the Chart Summit videos:  

A (Possibly) Disturbing Divergence on the General Market Overview Page

I've been noticing this while reviewing the Genreal Market Overview page for several days now and wanted to highlight it.  I've written several times about how I use the "Percent of Stocks Above their 50-Day Moving Averages" (similar to Worden's T2108 indicator) as an overbought / oversold indicator.  And I like it much better to signal oversold than overbought. 

How to Get a Read on the Market

As a long time CANSLIM fan, I'm a firm believer in the importance of the 'M' part of that acronym - "Market Direction". According to IBD:

if the overall market is in a downtrend, it will be very hard for even the best stocks to move higher. That's because 3 of 4 stocks move in the same direction as the general market, either up or down.

(The "general market" refers to the major indexes, primarily the Nasdaq Composite, S&P 500 and Dow Jones Industrial Average.)

Simply put: If you buy a stock when the market is in a strong uptrend, you have a 75% chance of being right. But if you buy when the market is in a downtrend, you have a 75% chance of being wrong.

It's critical to me to have a read on what the broad market is doing. I used to use IBD's 'Big Picture' to get my market read but I find that I can reach the same conclusions using my General Market Analysis page. I've written before about how I use the General Market Overview page to get a read on the market as a whole. Last week I pointed out in my notes last week how choppy & trendless the market was looking. I want to go a little deeper into what it's telling me today.

Here's the trend table for the indices from today's General Market Analysis page: