Chart Patterns (1)

Chart Patterns (1)

Introduction to Chart Patterns There are hundreds of thousands of market participants buying and selling securities for a wide variety of reasons: hope of gain, fear of loss, tax consequences, short-covering, hedging, stop-loss triggers, price target triggers, fundamental analysis, technical analysis, broker recommendations and a few dozen more. Trying to figure out why participants are buying and selling can be a daunting process. Chart patterns put all buying and selling into perspective by consolidating the forces of supply and demand into a concise picture. As a complete pictorial record of…

Gaps and Gap Analysis

Gaps and Gap Analysis

What are gaps and what do they mean? Have you ever wondered what causes gaps in price charts and what they mean? Well, you’ve come to the right place. Just in case, a gap is an area on a price chart in which there were no trades. Normally this occurs between the close of the market on one day and the next day’s open. Lot’s of things can cause this, such as an earnings report coming out after the stock market has closed for the day. If the earnings were…

Riding the Waves

Riding the Waves

Chart Analysis – Riding the Waves Many people compare a lot of current price action in the markets with that of the great market crash and depression in the 1920’s. There may be some good reasons for that as price patterns do seem to repeat often. Another thing that can be useful from that era of trading is one of the technical analysis techniques, Elliott Wave, what we call Riding the Waves. I have received several emails requesting me to explain Elliott Wave Theory.  While I do not use it…

Consumer Spending in U.S. Increases by Most in Eight Months

Consumer Spending in U.S. Increases by Most in Eight Months

Consumer purchases climbed in January by the most in eight months, fueled by faster earnings growth that’s being accompanied by rising inflation. The 0.5 percent advance followed a 0.1 percent gain the prior month, a Commerce Department report showed Friday. The January figure exceeded the 0.3 percent median forecast in a Bloomberg survey. Incomes also climbed 0.5 percent, more than projected. Steady hiring, cheap gasoline, and rising home values are powering Americans’ ability to boost spending, which accounts for almost 70 percent of the economy. The report also showed the…