As the stock market evolves so must investors. Most retail investors trying to learn technical analysis are all reading the same books written decades ago. They come up with the illusion of magical chart patterns that should form in a specific way. But what most investors do not realize is these books were written before the market was dominated by algorithms, high frequency trading firms, dark pools and a multitude of alternative trading systems for matching orders. Historically, stock charts were created with primarily price and time. Volume was rarely included because there were only a handful of exchanges for executing orders. Candlesticks were notRead More →

Head and Shoulders Reversal Pattern The head and shoulders pattern is one of the most notorious technical patterns. When traded properly its statistical success rate is very high. Although the complexity of pattern often causes impatient traders to anticipate the formation and front run the breakout. What makes the head and shoulders pattern so complex, is it combines all possible components of a technical pattern: volume, trendlines, rounding, support (resistance lines), and the breakout. The head and shoulders pattern is mostly known as a reversal pattern found at a major top or bottom, however what fools many traders is this pattern can also developed as aRead More →

If you have been following me on twitter you know I am a huge proponent of the “Volatility Squeeze”, and since my inbox is consistently filled with inquiries about this trading strategy and my use of the Bollinger Bands, I thought I would write a blog post about my favourite setup.Read More →