Category Archives: Technical Analysis

Stock Market Sentiment Modulators

The stock market plunge after the referendum result in the United Kingdom was an attempt from the part of certain market participants to scare retail investors via “market sentiment modulation.” The intent was to create a perception of chaos and … Continue reading

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Price Charts Can Be Misleading

Savvy market professionals know that, finance people know that, even some retail investors know that but the financial media continues to serve price charts to the public. Return charts paint a different story about the state of the stock market.

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Failure Of Head And Shoulders Pattern In SPY Now Final

Last month I wrote that “There Is No Head And Shoulders Pattern in SPY“, despite numerous articles to the contrary. This chart pattern is now invalidated and its failure raises more questions about the usefulness of chart patterns in technical … Continue reading

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Beware Of Biased Chart Analysis

Selective perception is common in market analysis and a leading cause of bias. If one looks at charts with an open mind, there are often conflicting signals. Head and shoulders traders in SPY were reminded of this market reality last … Continue reading

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Momentum And Chart Traders Clash Over Market Direction

Chartists see an ominous top formation in SPY but momentum traders rely on a recent bullish golden cross. Is there any way to know who is right and who is wrong?

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There Is No Head And Shoulders Pattern in SPY

There are many posts in the blogosphere and social media in the last few days about a head and shoulders top formation in SPY. There is no such pattern formation.

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