What is a common gap?
A common gap is a price gap on a chart that is filled (retraced) within a few trading days.

In this case, JBLU (Jet Blue Airways) opened with a small gap on March 11, 2009. The price met resistance @ the 20 period EMA and began to pullback. The retracement could have […]

The $SPX (S&P 500 Large Cap Index) has met a resistance level at the 50 period EMA around the 800 level. On top of that, the slow schotastics are overbought and the direction of the schotastics has changed and is now sloping downward. This could be the end of the recent rally that we have […]

There is no better way of teaching technical analysis than through hard core examples.

50 day EMA Breakout
Today was a particularly significant day in the stock market, especially if you have been following the recently suffocating insurance monster (AIG). Technical analysis proved itself worthy once again as AIG finally “broke out” of its 50 day EMA […]

The concepts of support and resistance are based on the price of a stock normally trading within certain limits (trading range). If the price of the stock begins to “test” the limits of the trading range, it could signal important changes that may occur in the near future.
So how do we establish the trading range […]

I joined Wall Street Survivorlast year and ended up being in the top 1% of the contest. I actually placed 93 of over 20,000 members in the contest, which is superb. I didn’t win a grand prize or money, but I did develop a working trading strategy that I continue to use to this day. […]

The gross domestic product (GDP) continues to decrease and many investors are left out on the battlefield with a dagger, only to be slaughtered by the ruthless, blood-thirsty market. It is time to let that dagger go and grab a shield. Recession proof, defensive stocks are the key to steady gains during a recession. They […]

I was surfing the web and found these interesting polls. What was more interesting was the results. I thought I should share them…
With our new president in office and our economy still in the gutter, American’s are starting to question if “change” is really coming. In a recent survey at the Wall Street Journal, 49 […]

Now that you know the basics of candlestick charting, you are ready to interpret the different types of candlesticks.
The shaven head is the candlestick that has absolutely no upper shadow and has a green (or white) real body. It looks like a new army recruit that just “shaved” his head. During the day, the price […]

Japanese Candlesticks were invented some 200 years ago to track the prices of rice. Today they are invaluable to tracking the prices in the stock market. What many people don’t know is that these Japanese candlesticks can reveal valuable information that may forecast future prices. They are used for day trading and investing by many […]

Be Cautious With Market Analysts…
A very common mistake many investors make is to rely on others for their investment decisions. Very much like the weather, market analysts are merely forecasters of the stock market. While it is true that market forecasters base their opinions and views on their research, these opinions are always subject to […]