ARNA (Healthcare Sector Biotechnology) The candlesticks are showing a double bottom yesterday, and ARNA had a 9.49% move closing close to the 50-day simple moving average. This could be a sign that the bottom is starting to build, and the rally we are looking for is near. The potential trade is about 30%
FEYE (Technology sector software application) FEYE has the potential of a 35% move with almost a five-month base after its decline and appears to be taking control. Yesterday’s bullish morningstar signal over the big three is the indication of the possible rally and attack of the 200-day simple moving average.
REXX (Energy Sector Oil and Gas) REXX started its move in early August with a run to the 50-day simple moving average pulling back slightly and closing over the big three on September 15 and showed follow-through yesterday with about 17 1/2% to the 200-day moving average. REXX is looking like a chart we could profit from. Note the energy sector is forming a bullish morning star signal.
TZA (Small Cap Bear 3X) Featured on September 5th. Last Friday, TZA formed a bullish harami closing over the T-Line and 20-day SMA and looks to want the 50-day SMA. Over the 50-day SMA, we could see the 200-day SMA, about a 12% move.
My entry plan ideas: (Already own TZA) Buy over $14.22
My stop plan: $14.14
Years ago (over a decade now), Rick Saddler, the creator of this very website, developed a swing trading strategy based around what he decided to call the “T-Line.” The T-Line is essentially the 8-day exponential moving average, or the 8 EMA. Although Saddler wasn’t the first trader to make good use of the 8 EMA, he did come up with a clever trading strategy to employ the 8 EMA for support (if there is buying pressure) and resistance (if there is selling pressure). Learning how to trade the T-Line is simpler than you might think, especially if you use the helpful tips we’ve compiled below.
TZA (Small Cap Bear 3X) Has formed a bullish engulf with follow-through closing over the T-Line. Today or early next week we could see a close over the 50-day SMA.
My entry plan ideas: Already own, buy over the T-Line
My stop plan: Close below the T-Line
UCTT (Technology Sector Semiconductor Equipment) UCTT was a featured trade idea on July 23, 2014. It could have been traded for about a 12% profit. After a profit taking pull back, UCTT has now presented a morning star PBO ready to take on the 200-day SMA and a 15-30% move.
My entry plan ideas: Buy on positive trading above the T-Line and 20-day SMA
My stop plan: Close below $9.65
Last week we discussed the very basics of candlestick charts: what candlesticks look like, what their shape conveys, and how you can begin to understand them. Today we’d like to take that lesson one step further. Now that you can interpret a candlestick’s meaning, let’s talk about the various formations and patterns you’ll encounter in candlestick charts and what they suggest. Understanding candlestick charts (both the logistics and complexities) will take some time, so for now, we’re sticking with the basics. Let’s get started!
