Just because a thing is small, that does not mean it is insignificant. Take the Doji candlestick signal! Typically resembling a plus sign or a cross, this small signal (formed of just one candlestick and lacking a body) is still important. In fact, it has the power to change traders’ buying and selling strategies. And when a basic Doji lacks an upper or lower shadow, it becomes either a Dragonfly or a Gravestone Doji. Although similar in appearance, the Dragonfly and the Gravestone have very different implications. To learn how to identify and translate these opposing signals, please scroll down . . .
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Today’s Swing Trade Ideas
FLEX/Long (Technology) FLEX has found support on the 200-period moving average twice this month creating a double bottom. The bull kicker yesterday gapped over the big three and closed near the recent high. Over $12, FLEX could work its way to $20.
Possible entry plan idea: Above the 50-day simple moving average
Possible stop plan idea: A close below the 50-day simple moving average
Covered YHOO short yesterday +12.17%
Up 17% on LOCO, plan to protect profits
Good Morning,
SPY: The SPY dropped to previous lows and then began to bounce and work its way up closing with a bullish Harami back inside the trading wedge we have Continue Reading
Today’s Swing Trade Ideas
BSFT/Short (Technology) On January 15, BSFT printed a bearish engulf that also engulfed the big three. For the past week, price has just move sideways at the lower end of the trading range and yesterday printed another bearish engulf. A break below $27.10 would set BSFT in motion to possibly retest the 200-period moving average.
Possible entry plan idea: Weakness below $27.10
Possible stop plan idea: A close above $27.30
Yesterday’s short on Yahoo worked out very well in the trading room and looks as if the selling may continue. Yesterday was a rough day, and most everybody had to reevaluate their trading account, maybe even close a few losing trades. I did. As you know, stock trading is risky, and there are some days that the bears win; please don’t let anyone tell you or convince you of anything different. The score should be kept over a week or a month, not for one day. We try to teach and educate in the trading room and do not advocate following anyone into a trade.
Good Morning,
SPY: It’s pretty obvious that I really don’t have to tell you how rough yesterday was if you are 100% bullish. If you are able to shift gears and start catching a Continue Reading
