BRCM trade example

Here is a BRCM chart with a trade example.

Momentum Trade

Heres what a momentum trade looks like. A short term counter trend trade.

SPY (ETF) S&P 500

Heres an S&P 500 chart showing the currenct equities market direction which is none! markets are still choppy with no confirmed bias. Being able to recognize choppy from trending environments has helped me alot in terms of progressing as a trader. We will have to wait and see how things progress on this chart in order to know the market direction.

(GOLD) (SPY)

Here we have two charts one being GLD the gold ETF and the other being the SPY the S&P 500 ETF.

GLD: Here we see that price formed a triple top. It is highly likely that the top will be taken out after the third attempt. Pre-market GLD has already taken off. Lets see how it goes.

SPY: Price formed a double bottom and a 2-1-3 pattern. this pattern confirms that the current trend is bullish and will remain bullish unless prices fall back into the consolidation range.

What Should I Trade? By Victor Niederhoffer

What Should I Trade?


Lyrics by Victor Niederhoffer and Laurel Kenner. To the tune of

“What Is a Man?” from Pal Joey by Richard Rodgers and

Lorenz Hart.

There are so many, so many ways to trade

But baseball is the model that’s for me

It tells the Average Joe

How he can make some dough

The times change far too much to trade without it

1. What’s a good trade?

Should I buy stocks now?

Am I a bull? Am I a bear?

Am I the value or the growth kind?

Am I the old or the tech kind?

What’s a good trade?

Trading’s like baseball
 
Win with a bat, or win with a glove.


Value has lagged since the world began

What should I buy? What should I sell?

What makes a winning trade?

2. First, runs expand

Stocks set to fall then

Next, runs contract—bull’s horns are sharp

It’s all so easy after the fact

Vol first goes down, Bulls are set to frown

When balls are dead, Time to steal bases

When balls are live, Swing from the heels

Cycles have changed since the world began

Offense at times, Defense at times.

That makes a winning trade.

(BP) Update

as suspected that last down move was a selling climax as prices has began to form an area of consoliadation. This stage could last years and still fail. This chart is only for observation as choppy action is on the way no doubt.

GBP/USD (FOREX)

Heres a 4 hour chart of the Pound Dollar or Cable. With price action at resistance telling us that buyers are holding against the sellers at resistance. If they continue to hold and not falter then prices will rise, and if the fail then prices are headed south. Its as easy as that.

British Petroleum

British Petroleum has been the stock in the spotlight for the past month as it has declined heavily on some extremely negetive news.Above is my technical veiw of the story and of course I might be right or wrong, this isn't an opinion its just one of the scenarios that could play itself out.

Goodluck with your trading!

TLT 20 year bond (ETF)

Here is a chart with explanation of the 20 year bond ETF, as evidenced capital is fleeing into bonds as risk aversion rises due to global worries. Watch out for a break of the $100 level and if it breaks bears then it will be an indication that bears are being unleashed.

(SUPPORT-RESISTANCE-NO MANS LAND)

Heres a clear chart of support, resistance and no mans land, the area in the middle of a consolidation zone is the most difficult area to predict in technical analysis.This chart demonstrates this fact, as price bounced off of support but never to reach resistance before supply hit the market and prices were forced to decline. I cant say with certainty that price wont keep on rising even after breaking the trendline because the area is considered to be neautral. Thus being called no mans land.It could still go either way and its best to avoid such price action.

Indecision (FOREX)

Ahead if the NFP theres alot of indecision in the market, bulls and bears are going at it. The market is struggling to find direction and at times like these its best to sit out and let the victorious side emerge before taking any action.

(SPY)

Here an SPY chart that looks interesting. Overall, market sentiment is mixed with no confirmed bias. We will have to wait for confirmation to decide on the overall direction.