Known in Japanese as iki chigai sen, which means “lines that move in opposite directions,” the Bearish Separating Lines pattern is a tale of two candlesticks. Although they share the same starting point, they veer off in opposing directions. The first, which is white or green, soars upward from the starting point. The second, which is black or red, plummets. To learn more about this simple but scarce continuation pattern, review the information and advice we’ve compiled below.
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Rick’s Featured Trade Ideas
WMB/LONG |RBB| Bullish Engulf | T-Line™ Bounce | H’er Highs and H’er Lows
WMB| Plan your trade & trade your plan | May 20, 2016
Possible entry plan idea: Buy box $21.54- $22.14
Possible stop plan idea: Protective below $21.54
Swing trade playground: $21.62- $29.85=38%
Playground risk reward: 17:1 + depending on | entry | exit | stop
SPY: T-Line ™ chart suggest the sellers are in control.
7:00 am: Bounce | Relief rally likely today
The SPY has been trending down since the Bearish Evening Star April 20. With a series of lower lows and lower highs, yesterday’s trading closed down .35% and closed with a lower low Doji. As I mentioned yesterday in the trading room and at last night’s webinar a bounce/relief rally is very likely today. The $207 level is still very important for the Bulls to gain back and important for the bears to defend. Because of the recent lower lows there is another strategic level that the Bulls need to take back ($207.75) Which would also challenge the upper trend-line if the attack was within the next few trading days.
As of the close yesterday the only S&P spider select ETF over the T-Line™ was energy ETF (XLE) and it was not overly impressive.
Trading knowledge ignites successful stock trading.
All the best to your trading success!
Rick
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Rick’s Featured Trade Ideas
WYNN/Short |H&S| BIF | T-Line™ Chart trending down
WYNN| Plan your trade & trade your plan | May 19, 2016
Possible entry plan idea: Short box $91.40- $87.85
Possible stop plan idea: Short stop below $91.40
Swing trade playground: $91.80- $76.20 =16%
Playground risk reward: 7:1 + depending on | entry | exit | stop
SPY: T-Line ™ chart suggest the sellers are in control.
7:00 am: FEDS Hawkish, market down, dollar up, XLF up, OIH down
It doesn’t appear that the market likes the Fed decision of raising rates in June, or for that matter, any time. As of April 20, the SPY has produced lower highs and lower lows. Yesterday confirmed another low swing. The SPY found support near the $203.90 support line, but I am finding it a little hard to believe that $203.90 will actually support price in the current market while in the current downtrend without a major bullish reversal signal.
Based on a couple Fibonacci lines and a little support and resistance work, I see a suggestion that $201.30 may be the next supporting line followed by $199.50-ish.
XLF, the S&P financial ETF, fared quite well yesterday closing with a Bullish Engulf; we still need to see confirmation above $23.27 and a close above the downtrend line overhead.
OIH, the oil services ETF, is forming a bearish pattern that we will be talking more about in the trading room today. USO United States Oil Fund has found the 200–SMA, and we may see a little profit taking from here.
Trading knowledge ignites successful stock trading.
All the best to your trading success!
Rick
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Rick’s Featured Trade Ideas
No featured trade idea today, there is simply too much risk in the market when you combine the FOMC events. Being our own money managers we control, our own risk and our future.
SPY: T-Line ™ chart suggest the sellers are in control.
7:00 am: Yay, FOMC meeting minutes today! This could be a chart game changer.
The SPY remains under pressure yesterday losing .93% and confirming another failed high on high-volume. It’s been almost a month now since we started talking about a possible bearish head and shoulders in the SPY if the Bulls lost the $207.00 area. With $207.00 gone, $204.00 becomes the next possible area of support, and today’s FOMC meeting minutes will play a part in whether $204.00 is controlled by the buyers or the sellers. If the sellers end up controlling $204.00, then the $200.00 area will likely be attacked. If the buyers end up controlling the $204.00 area, we will put our eyes again back on the $207.00 area.
After last night’s members’ e-learning and looking at a few short positions for possible trading, I thought I would look at a few behind-the-scene indicators: On Balance Volume has now dropped below its average; Time Segment Volume has dropped below the centerline; MACD has rolled over.
We suggest you don’t gamble with your money. Remember, cash is a position
Trading knowledge ignites successful stock trading.
All the best to your trading success!
Rick
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