The falling wedge is a bullish continuation pattern that chartists can use to trade or invest in the direction of the underlying trend. I realized that some books show falling wedges as bullish reversal patterns, but I am only interested in bullish continuation patterns and I choose to ignore names that are hitting new lows. This video will show

Chartists can get a jump on a bigger breakout by trading the swings within a developing pattern. In this example, I will outline the steps to identify these setups and the triggers for the trade. We will start with the overall

Sometimes what seems logical and helpful, is not and needs to be reconsidered. This is my conclusion with the sector breadth models. They are logical, and perhaps helpful at times, but they do not add value when it comes to timing trends in the sector SPDRs. A simple StochClose strategy performed better overall. This article will quantify signals for three breadth models using the sector SPDRs.

The turn of the month shows a strong bullish bias with an extremely stable equity curve that really took off the last few years. This strategy, which is only invested 38% of the time, outperformed buy and hold with a higher Compound Annual Return. Overall, the eight day percentage change at the turn of the month is positive 68% of the time for SPY. Despite strong numbers overall, February is weakest month when testing over the last twenty years, and we just happen to be in February.

Chartists trading oversold bounces and short-term bullish continuation patterns have two basic choices when it comes to an exit: trailing stop or trend reversal. Trailing stops are used initially as stop-losses and then trail price if/when it moves higher. Trend reversal exits are used to accumulate during an uptrend and exit when the longer-term trend reverses. This article will cover the trend reversal exit and three trailing stop alternatives.

2021 is just around the corner and chartists without a strategy should think long and hard about getting one. Trading in the direction of the trend is pretty much my bread and butter strategy. I do not fish for bottoms or attempt to pick tops. Tempting as it often is, I try to refrain from such endeavors as much as possible. More often than not, we are better off using trend-following indicators to identify bullish and bearish trend reversals

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This article will explore and backtest different moving average combinations on the S&P 500 SPDR over the last twenty years. Most moving average strategies work great when SPY trends, regardless of the period settings. However, SPY (aka, the market) does not always trend and trends are not uniform. Some are short and fast, while others are long and steady. This means we need moving averages that can best adapt to different environments.

RSI is widely used as a momentum oscillator to identify overbought and oversold levels. A dive into the formula, however, reveals that RSI is quite well equipped for trend-following strategies. It can even be used to rank ETFs and stocks to find those with the strongest momentum.

Seasonality is behind price action when it comes to analysis and signals, but monthly seasonal patterns can provide a tailwind to existing trends. This study will look at monthly seasonal patterns for the S&P 500 over the last 30 years with a new twist. In addition to win rate, we will also look at returns and the equity curves.

StochClose is an indicator that quantifies trend direction and trend strength. It also removes volatility from the equation and levels the playing field for stocks and ETFs. As such, it offers a balanced approach to trend identification and relative chart strength. TrendInvestorPro uses this indicator on charts and in the ETF ranking tables. This article will explain the methodology, show chart examples and provide an example of the ranking table.