The holidays are almost over and from a pure charts and OVI perspective the market looks strong.
As you’ll see from today’s video many stocks are setting up in clusters and you’ll notice how fluid the market is, with its ability to change form in just a matter of days. Remember how it changed on August 7-8th. A seemingly nasty downward retracement was stopped in its tracks in just two days with a railroad track pattern that was immediately evident on the S&P and Dow.
Things can change quickly and nothing is ever written in stone. The art is to be strong but flexible in your observation of how things are shaping up.
We really only look at two major patterns for our holistic view of the markets. OVI continuation patterns and Doji/Railroad Track reversal patterns. This approach has major benefits:
- We have complete clarity and do not get confused by conflicting analysis or drama
- We overwhelmingly get things more right than wrong – and even if we’re wrong we tend to not pay a high price for it due to a solid trading approach
- We can focus on the most obvious looking patterns and eliminate the noise
- We’re supported by proven empirical evidence – ie just cold numbers
- When things are unclear we can simply stay out until they become clearer
- Our method is based in the logic of supply and demand
Trading is a numbers game, and the game we play gives us odds that would result in every casino in the world banning us from entering their doors! Think of our method, our logic, our rules and then consider the independent analysis we’ve had performed that ratifies the approach. Then adapt size for your own appetite for risk and you have a pretty special way to play the markets with not an awful amount of effort.
Plus I should also mention, we’re constantly improving all aspects too!
Happy Labor Day in the US!
