Trading University Daily

I don’t normally pay much attention to the U.S. dollar index because it is so thinly traded. It’s far bettter to take signals directly from the markets you trade, and not from markets professionals don’t trade, regardless if it’s a leading indicator or not.  I can’t help but notice though the negative divergence between price [...]

The sell signal EURUSD gave this AM was good enough to be on a postcard.  It showed up cleanest on the 15 & 60 minute charts, but this 240 minute gives us a nice snap-shot too — see chart below. We had a shooting star right on 130.00 to cap off the counter-trend move which bubbled up last week following [...]

GBPJPY will give us a buy signal on the Daily chart here by clearing the trend line (resistance line) seen on the chart below. We have also seen a trend shift higher on the Weekly chart, telling us we could see a bear market rally. Bear market rallies, much like bull market corrections, tend to [...]

There is very definitely a difference between trading and forecasting.  Trading for most technicians is an activity that is dictated by what the market tells us to do. Forecasting is something entirely different.  A forecast to me is taking what the market is telling me now, namely its current path of least resistance, and projecting [...]

What has proven a valuable tool for us in determing and keeping track of the various trends at work in the different markets is a tool we call the “Trend Map” which first helps us avoid the back and forth price action of a counter-trending market, but also helps us to home in on trade [...]

Less is definitely more when it comes to analyzing markets. Or as the great trader Richard Dennis, backer and mentor to his now famous Turtles, put it, when asked why he made more money than anyone else in the room: “There is definitely less here than meets the eye”. What Dennis was saying was trading [...]