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Russell2000

How to Read Pennant Price Action More AccuratelyWe're all here on TV for the same reason, to become better traders and to make money. I came across this tip not too long ago and found that it really helped me read the price action better within pennants, so I wanted to share it with the community. Pennants form after a strong movement in price (either up or down) where the price bounces back in forth in a small area before it has to make a decision of where to go. The rule of thumb with pennants is they tend to break out in the same direction they were entered. This is often referred as a continuation pattern, where the price continues in the same direction it was heading. If the price was heading up, it will more likely than not break out to the upside and continue upward and vice versa. However, I noticed many times pennants not following that rule and I paid the price for being complacent in my trade. That was when I got this tip from Francis Hunt (highly recommended analyst) and it has really helped in anticipating where the price action is headed. Looking at WRX, notice how the price has strong spikes up in the price, followed by slow sell offs? This is bullish price action where the buyers are in control and it often leads to breakouts to the upside. I am merely using this price action as an example. WRX is a newly listed coin on Binance that did 9x in its first couple days on the exchange, so take this example more for the price action behavior than as evidence that it is going to explode to the upside. Now look at the pennant I have to the right of that. It entered the pennant on a bullish breakout so the price should continue in the same direction right? Well take a look at the price action inside the pennant. Notice the difference in how the price is reacting? In this case, each time the price slowly rises and is met with a sharp fall. This is an indication that the sellers are in control and you should be cautious of a strong breakout to the downside. I hope this tip helps you gauge your future trades into pennants more accurately. I have found that it has helped me dodge some sharp falls and take advantage of some big gains. I suggest you start searching the charts and analyzing the price action within those pennants to see if you notice this pattern as well. I hope it serves you as well as it has served me.
WEducation
by jpbrown1023
2
US2000 Russell aims BearishUS2000 Russell aims for a Bearish target of 1520.00. Technically. Daily range pattern being traded off highs to previous daily lows. Fundamentally. This comes immediately after the Dollar gains momentum as the market digest the statement - FED RATE SEPTEMBER 2019, as the dot-plot shows no additional cuts through the end of 2020. It also shows that ten members are forecasting flat or higher rates this year while seven expect a single further cut. Policymakers are split, and that's good for the greenback. Dollar maintains the positive tone across the board for September Rate Decision, equities fell with the news
OANDA:US2000USDShort
by HuracanFX
DOW megaphone 1960's vs todayI lost my original chart on this so I'm publishing this one- I'll publish updates in tradingview going forward. Just an interesting comparison and similar pattern in the Dow Jones Industrial average from the 1960's-70's vs. the DOW today. We are at a similar place at the #5 count. I'm just dying to know if this is a real breakout or just a fakeout. I've been of the strong opinion that we need a deeper/longer correction so I'm leaning toward a move down into mid-late 2020 prior to election. It only gets more interesting from here.. major fork in the road now. Forgive my spiel: I have warning signals firing on my other charts and I feel extremely uncomfortable with what I'm seeing today. The aug-sept drops, repeated recession talk, and doomsday media coverage sucked in a lot of bearish sentiment. That sentiment was squashed severely and shorts were squeezed out. Now things are turning around- shift in sentiment, vix on the floor, market 'breaking out', "positive trade negations" (<-- I'm tired of this narrative), put/call ratio LOW. All's well. Trader's are going long and FOMO (fear of missing out) is kicking in. I'm not too interested, folks. All is NOT well. I would argue that we're already in a recession now- don't be fooled by the Fed- they know a lot more than they can say. Trust me, they have early access. Why would they cut rates 3x in a row? Why the extraordinary repo injections with ever increasing amounts and duration? The fundamentals are ugly ugly ugly- DO NOT be fooled. There are so many clear warning signs- just dig a little deeper than the main financial news sources and consider raising an eyebrow at what's happening behind the curtain. If you look at the DOW from the 1960's-70's, you'll see that we eventually broke above the pattern and continued on after the #6 bounce- I'm beginning to question whether we repeat this. We could be forming a significant top in the market now, fall to #6 on this pattern, have a nice bounce... and that's it. We could drop through the floor and have a major recession/depression with a long road to recovery. This would actually be the better choice. I suppose we could have endless QE and continue this story, but to what end? What happens to our currency? What happens to our buying power? We will see inflation beyond our imagination if this continues. My vote is in favor of letting the market decide if that's still possible.. think about that. The market decided in 2008 to come back to reality. Now I'm not so sure that they can allow that to happen again. You can disagree with me, but I believe this market is being propped up in a perfect storm of events and by a buyer with unlimited leverage.
DJ:DJI
by gghsusa
1
IWM Volume TrendVolume spike very likely soon! Trend has been:VOLUME UP=PRICES DOWN. Watch for initial divergence where IWM could spike before correction. Eyes on that volume! This is not necessarily a good place to go long on IWM but it certainly could make a strong move up before any correction. I am positioned mostly short on market but I've had a small "long" hedge in IWM call options. Small caps have been lagging behind market oddly- I cannot discern if this is a red flag warning to the entire market or small caps are about to catch up. The volume certainly tells a story worth reading and the the 36,000ft view tells me be very careful up here- market pressing upward with major decrease in volume is a recipe for a major PIVOT down.
AMEX:IWM
by gghsusa
SPX OVernight Top in Place? Lower before Higher; Correction Inc!Chart says all. Been shorting too soon as usual, but the 7-wave Triple combo is a rare and confusing pattern. Overnight ES futurez tapped the intersection of long-term TL and near-term TL in this wedge; they converged at 3056. China says they were just kidding and wont get serious with the Great Donald, such a big surprise! Expect to fill the gaps from past weeks, get support around 295 on SPY and bulls may try again for the 9th wave. A real Bearish Correction can start anytime; but seasonally Feb-March would be a likely scenario with trade and election worries looming. On Wednesday 60% of trading was selling, only 40% buying to reach new ATH; RUT and DJT diverged, Transports just got killed; these are leading indicators. Broader market is not in step with the indexes, which advance on progressively smaller volume and fewer issues with each successive bull wave. VIX is sub-13 again and in a compressing wedge, expect a big pop in volatility very soon! Play the VIX with UVXY calls if you dare! This is an idea and does not in any way constitute investment advice- trade at your own risk! GLTA!
CME_MINI:ESZ2019Short
by DaddySawbucks
37
RUSSELL 2000 - More Overvalued than During 2000? - #ValueCyclesThat's right, more overvalued than during year 2k and the subsequent tech wreck that ensued. How? Simple, measure the RUT against something that is not transient, i.e. in this case silver. Frustrated with the back and forth of the market during late 2018-2019? Not if you were measuring assets correctly, for those with the forethought to do so, they are sitting on a healthy 30%+ gain since August, with plenty of upside remaining. Buy and Hold is dead, get smart or go broke. #ValueCycles Subscribe for more, like, comment and share this with a friend who is stuck in stocks...
TVC:RUTShort
by Profit_Link