Double Tops and Pivot Points Explained

Double Tops and Pivot Points Explained

Today we want to share with you a chart pattern that the pro’s use everyday to great effect. The chart pattern we will be looking at, is one of my favorites as it has a high reliability factor.

The chart pattern in this short video is well known inside the professional trading community. However, outside of the pro circle it seems to be shrouded in mystery.

In this short 3 minute video, we peel away the layers of mystery and show you step by step how you can personally benefit from this chart pattern that occurs in all time frames.

What’s amazing to me about this chart pattern, is the fact that after over 3 decades of real world trading, it continues to repeat itself.

Click Here To Watch The Video

With that fact on our side, we think it’s a safe bet that this chart pattern is likely stick around for the next generation of traders.

Please feel free to leave a comment to let us know what you think of the video.

Why Weekly Charts Are so Important

Why Weekly Charts Are so Important

Today we are looking into why weekly charts are so important. We will use the EUR/USD as an example and deeply investigate the buy signal we received on this cross on Monday, July 27th.

Although it’s too early to tell if this signal will be profitable, it is certainly a signal you must take if you are a disciplined follower of MarketClub’s “Trade Triangle” technology.

You can watch this video with our compliments and there is no registration requirements.


How To Spot Winning Futures....Watch Video NOW

New Video: Candlestick Formations You Need to Learn

New Video: Candlestick Formations You Need to Learn

Today’s short video is something quite special.

In many of our previous videos we’ve looked at charts using Japanese candlestick charts. While this is interesting, we’ve never quite explained to you some of the powers behind using Japanese candlestick charts.

The Japanese began using technical analysis to trade rice in the 17th century. While this early version of technical analysis was different from the US version initiated by Charles Dow around 1900, many of the guiding principles were very similar.

In this video we will point out to you some powerful Japanese candlestick formations on Google, Gold and Crude Oil.

Just Click Here to watch the video and please feel free to leave us a comment to let us know what you think.

Over 1,000 Hours of Trading Education

Do You Understand How Divergences Work in the Market?

Do You Understand How Divergences Work in the Market?

In our new short video, we share with you some divergences that
are taking place in the S&P 500 right now.

I'm also going to show you divergences that didn't work out,
what you should look for, and how you should act when a
divergence does not work.

As always, our videos are available to view without charge
and without registration.

Just click Here to watch the video!

If you enjoy these videos, share them with your friends. We am
sure they will find them different and at the same time educational.

Finding The Big Trades

In today’s video, we will be using MarketClub’s “Trade Triangle” technology to discover stocks that are potentially getting ready for big moves on the upside.

We will show you a quick and easy way to replicate these moves using using MarketClub’s tools for the trader. With just a few clicks of the mouse, you too will be able to spot these trades.

You can use MarketClub’s “Trade Triangle” signals for Stocks, Futures, Precious Metals, forex, ETFs and Mutual Funds. To the best of my knowledge there is no easier, faster way to find winning trades.

The video is free to watch and there is no need to register. I would love to get your feedback about this video so please feel free to leave a comment.

"Finding the Big Trades" Click Here To Watch

What Do Stock Market Wizards Have in Common?

How much do you think you could learn if you had a chance to sit down with over 15 of the most successful day, value, and long term investors of all time? Do you think you’d finally get that one piece of advice that takes your trading from OK to extraordinary? Today you have the chance to pick the brain of one man who has sat down with experts and got your top questions answered.

The key ingredient with ‘Super Traders’ isn’t as complicated as you think, as most of them share the same traits and behavioral patterns, but it’s how they put them to work in the markets that sets them apart.

Just visit this link to watch the seminar that brings the experts to you!

Don’t delay and once you visit the seminar you’ll notice 3 other seminars....that’s a special bonus just for you, from me!

Happy Trading!
Ray C. Parrish
CEO/President The Crude Oil Trader

Secrets of the 52 Week High Rule

From guest blogger Adam Hewison..... 

Over 30 years ago I learned from a very successful trader, a trade secret I’ve never shared on the web before. In fact, I only shared this trading secret with a few friends during that time.

I learned this trading secret from a trader named Bill… I am keeping his last name private as Bill is a very low key guy and shuns any publicity.

Using his special trading technique, Bill made millions and millions of dollars from his office. Now for the first time, I am going to share with you the exact same technique that Bill used so successfully for so many years. The best part is that this technique is still working more than 30 years after I learned about it. Now it’s time for the next generation of traders to learn Bill’s secret.

Bill didn’t even have a name for this killer trading technique. I named
it “The 52 week new highs on Friday rule”.

Just click here to learn this trading secret and please take a minute to leave a comment and let us know what you think.

New Video: How To Use Fibonacci Retracements

We have had a number of requests to do a video on Fibonacci retracements and how they can be used in trading.

We put together this five minute lesson on Fibonacci trading and how we use this important tool to determine turning points in the market. Like all tools, it has its flaws and should be used with other complementary tools like our "Trade Triangle" technology.

As always, our videos are free to watch and there are no registration requirements. We hope you have the time to comment and share if this video helped you understand this important trading tool, or how you're already using it.

We hope you enjoy this brief lesson and it helps you understand how to use this important tool.


Just click here to watch "How To Use Fibonacci Retracements"

How To Trade A Volatile Market

At Active Trading Partners, we take a different approach to trading than most online services in terms of advising our subscribers. Our methodology revolves around behavioral characteristics of the crowd, and taking advantage of the extremes in sentiment, whether bullish or bearish.

In the case of ETF trading, we often work with 3x Bull or Bear ETF’s like BGZ, ERY, ERX, TZA, TNA and so forth. Using a combination of Fibonacci re-tracements and Elliott Wave theory, we look for high probability set ups and extreme overbought or oversold situations to trigger a trade recommendation. A most recent example with ETF’s was a short position we took against the rising energy stock index, the XLE. This index had become incredibly overbought in just a few weeks, and looking at prior topping indicators and fibonacci trading day cycles, we felt it was a “Low Risk” bet to short the rally. We recommended ERY at $45.40 as the XLE headed over $56 and was becoming overbought. Within 7 days we had a 15% plus gain by going against the crowd. I saw a 13 fibonacci day trading rally at extremes, so we used the XLE chart below, to identify the timing to enter into ERY.

We use the same approach when it comes to trading individual stocks. We look for “Waterfall decline” reversal patterns, which are somewhat proprietary for ATP and our methodology. This method reduces our entry risk because we are buying stocks that have already taken a recent short term multi-day or even multi-week hit as investors have exited the stock. Recent examples include buying DCTH, a former high flier that fell from $16 down to $5.80 when ATP advised purchase. Within days the stock bottomed and ran to as high as $9 within a few weeks for a 50% move. Another example is OREX, who took a hit in concert with VVUS several weeks ago. We felt the sell-off was overdone and recommended the stock at $4.01, after it dropped from $6. The stock ran back to $5.30 within 10 days for a 30% plus gain.

Trading in a volatile market means you need to be patient, discerning, and wait sometimes for an oversold or overbought condition before you act. Sometimes acting early can cause you to get spooked out of positions that end up being profitable, but only after you panic sell out at a loss. At ATP, we use a “tranche buying” methodology which tries to help with the emotional side of entering or exiting a trade. We recommend 1/3 or 1/2 positions at a time, even if we are really confident in our entry point. This way just in case you mis-timed the bottom of your target by one or two days, which often happens, you reserve some powder to add additional capital into the trade to work your way in over several days. We also advise that our partners enter into these tranches over 24 hours of trading time, perhaps buying 3-4 times into our position especially on minor pullbacks. How many times have you bought into a trade entry at say $5.00 a share, and two days later the position bottomed at $4.50, you close it for a loss, and then it runs to $6? Using a tranche buying methodology keeps your emotions in check and you actually look for a bit further dip as a benefit, not a detriment to your trading.

We also adjust our stops as the stock or ETF moves after we have completed our entry. The main goal as a trader or investor is to book profits and limit losses when you are wrong. Since our ego is often our worst enemy, adjusting your stops as the trade moves in your favored direction keeps you from gettting too giddy and letting a profit slip away. In addition, a reasonable stop prevents you from being over-confident and letting a small loss turn into a larger one. Another recent sample at ATP was buying into VITA, which was very oversold at $1.76-$1.80 ranges. We also though advised our partners take profits at $1.92-$1.97, with a nice and tidy 6-10% gain over 7-8 days of hold period. The stock then fell hard just a few days later to $1.64. Not taking profits would have meant wiping out all of your hard work and watching your paper profits turn into a “hoping for a rebound” position.

In volatile markets, don’t get off your game plan and try to keep your ego in check. Enter into your trades no matter how confident you are, slowly and over 24-48 hours of trade time. Adjust your stops and prevent yourself from getting too greedy or giving away profits. Take your time, wait for set ups, and also take a break every now and then....nobody needs to trade everyday.

Make sure to check out at The Active Trading Partner.Com and sign up for our free weekly reports!

Crude Oil Technical Analysis 6/8/2011

Pivot: 99.90

Our Preference: SHORT positions below 99.9 with targets @ 97.85 & 96.9.

Alternative scenario: The upside breakout of 99.9 will open the way to 100.56 & 101.8.

Comment: the RSI is mixed and calls for caution.

Trend: ST Range; MT Range

Key levels Comment

101.8* Intraday resistance
100.56** Fib retracement (50%)
99.9** Intraday pivot point
98.4 Last
97.85** Intraday support
96.9** Intraday support
95.55** Intraday support

New Video: How to Protect Your Capital Without Gold!

Today, I decided to do a video to show you how you can protect your capital using something other than gold. In this new, never before seen,7 minute video, you will see exactly what we're looking at and how you can protect your nest egg very easily using tools that you may or may not be familiar with.

It would seem as though the financial markets, particularly certain financial stocks, are incredibly vulnerable. The erratic recovery we saw from the lows in March of 2009 maybe in jeopardy. In fact, with many financial stocks making new lows for the year, it does not augur well for the future.

Also, there's been a lot of prognostication about the end of America as you know it. "Kiss America Goodbye," and "The Death of America," are just a few of the wild headlines that are out there. This video takes you to the next level and offers you a concrete path on what to do to protect your capital and nest egg.

This video is available for viewing free of charge with no registration requirements. I highly recommend you take just a few minutes of your day to watch this video. Save yourself from a tremendous amount of frustration and loss of capital with these easy to understand steps.

So just click here to watch How to Protect Your Capital Without Gold!

Enjoy the video and we'll see you in the markets,

Ray C. Parrish,
President/CEO The Crude Oil Trader

The Fibonacci Tool Fully Explained

If you are not already using the Fibonacci tool in your trading maybe you have heard of it. It is one of the most effective and simple tools to use in becoming a successful trader. And it is fully explained here in this video, it’s a technical tool that can make you rich.

You may have heard about Fibonacci, the man who discovered a set of numbers who that have a major affect on the market. So who is this Fibonacci fellow, and why are his findings so important in the market place?

The mathematical findings by this thirteenth century Italian man has yielded a useful technical analysis tool which is used in technical analysis and by scientists in a large array of fields. Born Leonardo of Piza, he is better known in the trading community as Fibonacci. Fibonacci’s best known work is Liber Abaci which is generally credited as having introduced the Arabic number system which we use today.

Fibonacci introduced a number sequence in Liber Abaci which is said to be a reflection of human nature. The series is as follows: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 and on to infinity. The series is derived by adding each number to the previous. For example, 1+1=2 , 2+1=3, 3+2=5, 5+3=8, 8+5=13, and so on.

We use the Fibonacci series mainly for retracements (see today’s video) and to show us where support and resistance might come into the market. We also use this tool to enter or add onto a position.
In this video we show you these exact retracements and how they affected the market at that time.

Click Here To Watch Video

There is no need to register for this video and of course you can watch it FREE with our compliments today.

Crude Oil (NYMEX) 6/7/2011

1 week Trend:  (=)   1 month Trend:  (=) Crude Oil‏ (Jul 11) intraday: key ST resistance at 99.4 Pivot: 99.40 Our Preference: SHORT positions below 99.4 with 97.85 & 96.9 in sight. Alternative scenario: The upside breakout of 99.4 will open the way to 100.76 & 101.8. Comment: the price is challenging its negative trend line. Trend: ST Range; MT Range Key levels Comment 101.8* Intraday resistance 100.76** Intraday resistance 99.4** Intraday pivot point 99.13 Last 97.85** Intraday support 96.9** Intraday support 95.55** Intraday support

Investors are Fearful and That Means Higher Prices are Around the Corner

Everyone knows people make mistakes when rushed to do something or if they are scared of something bad happening. We also know fear and greed is what moves the market each month, week, day and tick… So when the majority of investors are selling their shares at the same time you must recognize the psychology behind it and prepare for a low risk trading opportunity in the days that follow.

Stepping back and looking at the general vibe in the financial arena we hear about Quantitative Easing II coming to an end which should help the dollar gain strength again. A rising dollar means lower stock and commodity prices. Also keep in mind the United States is in so much trouble they will always have quantitative easing even if they are not calling it QE, that’s my opinion anyways…

In addition, everyone was talking about the saying “sell in May and go away”. Take a look at the chart of the SP500. The first session in May was the highest point and the SP500 has only gone down since then. The chart below shows my fear indicator and with the masses all selling in the month of May I have to think it’s getting ready to bottom and start another 5-6% rally from down here. Keep in mind I am more neutral on the overall market for the longer term. In the next month or two I figure we see higher prices from here but come August we could see the dollar bottom and stocks sell off in a more significant manner.

Last but not least, gold and silver…
Looking back in time and reviewing inter-market relationships with gold and silver I feel more and more investors are becoming bearish and moving their money into safe havens like gold and silver. Recently we saw a sharp pullback in both gold and silver. The price and volume action that took place was a clear sign of distribution selling meaning big money players taking money out of those investments. I see this pattern happen in stocks, indexes and commodities all the time and it generally warrants caution!

My trading buddy JW Jones over at OptionsTradingSignals.com has some very exciting ways to profit from these choppy market conditions with limited risk. If you are into options then check it out.

Typically we will see a few more new highs being reached which are quickly followed with strong selling. What happens is that the big money players allow the price to make a new high and that hits the headline news, CNBC, BNN etc…. drawing in new buyers and a surge of volume for the big money guys to sell into and exit their positions at the top. It also helps cover up their large volume selling.

Below is what I am thinking will take place in gold this summer.

Weekend Trend Conclusion:
In short, I feel the dollar will continue to slide lower, both stocks and commodities should have some strength over the next 1-2 months but after that all bets are off and it will be time to re-evaluate things.

The next week in the market will most likely make or break this outlook as the overall market is trading at a tipping point. Let’s see how this week pans out then take another look at the charts.

Daily Crude Oil Technical Analysis

Crude Oil (NYMEX)

6/2/2011 8:04 AM

1 week Trend:  (=)

1 month Trend:  (=)

Crude Oil‏ (Jul 11) intraday: mixed.

Pivot: 100.80 Our Preference: SHORT positions below 100.8 with targets @ 99.2 & 97.85. Alternative scenario: The upside penetration of 100.8 will call for a rebound towards 101.45 & 102.75. Comment: the RSI is mixed and calls for caution. The price has struck against the 50 MA. Trend: ST Range; MT Range Key levels Comment 102.75* Intraday resistance 101.45* Intraday resistance 100.8* Intraday pivot point 100 Last 99.2** Intraday support 97.85** Intraday support 96.4** Intraday support

Market Sentiment and Volume Reach Extreme Panic Levels

It was a crazy session as the stock market slid over 2% on heavy volume. This type of price action means fear has taken control of masses and they are unloading (selling their stocks) in anticipation of much lower prices.

Trading off extreme levels of fear can be very rewarding if done right. That’s because fear is the most powerful reaction we as humans have and it’s somewhat predictable. Fear can make people do crazy and or stupid things and it’s these extreme reaction which investors do in the market that lead togreat trading opportunities. Buying into fear and selling into greed is what I focus on.

Gold and Silver Showing Greed and Fear
For example, if we take a look at the 4 hour chart of gold and silver you will see how investments which have a large amount of speculation like Silver move the opposite to what other related investments like gold are doing.

The first chart which is gold, shows how today’s fear had investors moving into this shiny safe haven. Silver on the other hand has been the investment of choice for every Tom, Dick and Harry trying to play the popular headline investment. So on a day like today when prices start to slide in the stock market these speculative holders of silver get scared and dump (sell) their position in stocks and silver. 

The problem with silver is that the market is still small and its does not take many people hitting the sell button to send it 5% lower which is what took place today. This is one sign which is telling me traders are getting scared of a market sell off.

Evidence #2 Showing Signs Of Fear
These data points below clearly show sellers were in control today. I like to look at the NYSE because it holds all the big brand name stocks which the masses like to buy when they feel lucky. So when I see this many traders selling and so few buying I know the masses are dumping shares and going to a cash.

The NASDAQ had 10 shares being sold to every one share being bought which is half the fear level of what the NYSE and that makes good sense. The NASDAQ has many smaller companies which the masses just don’t know about or own so there was not as much selling taking place on that exchange. So brand name stocks getting dumped all at once is another sign of extreme fear hitting the market.

Evidence #3 Showing Signs Of Fear
This chart below provides the momentum of the market. I think of it as the rubber band effect. If the market selling momentum is strong enough then it pulls this indicator down to a level which it cannot go much further before it gives way and moves back a neutral or positive extreme level. This little hidden gem of an indicator can help time entry and exit points with ease once you understand it. Currently its telling us that a pause or bounce is likely to happen tomorrow.

Evidence #4 Showing Signs of Fear and an Oversold Market Condition
Take a look at the 10 minute SPY (SP500) chart below. Simple visual analysis shows that today’s strong selling which has brought the market down into a support zone should provide a pause or a bounce very soon. The question is how big will the bounce or rally be?

Given all the confirming is looking ready for a bounce and I feel we could be nearing not a bounce but an intermediate bottom and higher prices going forward. But if we break strongly below this support level then all bets are off and much lower prices should occur.

Mid-Week Trading Conclusion:
In short, today’s sharp move lower has put the market in a short term oversold condition. Meaning, a bounce is very likely to take place within the next 1-3 sessions. With the masses selling all their positions in stocks and commodities it generally takes 1-3 days after a day like this for the selling pressure to dissipate and for value buyers to step back into the market providing support.

I think both stocks and commodities will strengthen in the next few days and we will see if the market can get some traction and start a new rally. But until everyone has sold out of the market giving their shares to the big money (smart money) at a sharp discount I feel we have a rough road ahead.

Get Chris Vermeulens trading reports free each week, just visit The Gold and Oil Guy.Com

Rigzone: Crude Oil Climbs to a Three Week High in Tuesdays Trading

Crude futures climbed to a three week high Tuesday as concerns eased over Europe's debt crisis.

July's oil prices gained $2.11 Tuesday before settling at $102.70 a barrel on the New York Mercantile Exchange. The greenback fell against the euro as the European Union debated on sending additional financial aid to boost Greece's economy. Luxembourg Prime Minister Jean-Claude Juncker said a new aid package will be decided on by the end of June. A weaker dollar increases the appeal of the dollar denominated commodities making it cheaper for foreign buyers.

After noticing a 40 barrel spill at a pump station in Kansas, TransCanada temporary closed down its Keystone pipeline further pressuring oil prices Tuesday. The Keystone pipeline carries half a million barrels of crude per day from Alberta to Cushing, Okla., the largest oil storage hub in the U.S.

Oil prices peaked at $103.39 a barrel and bottomed out at $99.60 on Tuesday.

Natural gas for July delivery traded up Tuesday, adding 15 cents to settle at $4.67 per thousand cubic feet. Prices rose to their highest in four weeks on forecasts predicting above average weather. Hotter weather increases demand for fuel which is required for air conditioning. The intraday range for natural gas was $4.525 to $4.71 per thousand cubic feet.

Gasoline prices also ended higher Tuesday. After fluctuating between $3.07 and $3.165, gasoline settled at $3.15 a gallon, 5.84 cents higher from the previous trading session.