Tackle Today: When Price Trends End
April 4, 2022
«The Art of the Reversal webinar looms.»
Traders,
Our upcoming YouTube webinar takes a deep dive into how price trends reverse. It’s called The Art of the Reversal. Coach Matt will be at the helm, teaching you everything you need to know about how to spot, analyze, and trade the various reversal patterns that end (and begin!) trends.
This week’s Tackle Today messages will focus on a few key principles you need to know to prepare your minds for what’s bound to be a power-packed presentation. Let’s start with the cycle of price trends.
In technical analysis kindergarten, they teach you that a trend in motion stays in motion. And that’s true. But the trend is only your friend until the end. At some point, perceptions shift, and an uptrend tops. All the good news gets priced in. Often, traders take prices too far, and then when reality fails to live up to the lofty expectations, a re-pricing occurs. When uptrends peak, it’s usually a process that forms topping patterns.
The same phenomenon happens in a downtrend. We assume the descent will continue when prices are below major moving averages and carving out lower pivot highs and lows. But, eventually, the bad news gets priced in. Sellers get exhausted, bottom fishers enter the fray and prices bottom. When downtrends trough, it’s usually a process that forms bottoming patterns.
These bottoming and topping formations collectively are known as “reversal patterns.” Master chart readers who can spot them see yellow lights or warnings signs that allow them to make timely adjustments.
🛑 Upcoming Webinar › Technical Analysis 101: The Art of the Reversal with Coach Matt Justice | April 11th at 8:30 PM EST on YouTube
Join Tackle Trading on the next Technical Analysis webinar where Coach Matt Justice is going to take a deep dive into how price trends reverse. It’s called The Art of the Reversal. You will learn everything you need to know about how to spot, analyze, and trade the various reversal patterns that end (and begin!) trends.
✅ Read the blog here.
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Video of the Day: Gino’s Gems – 6 Ways To Speed Up Your Thinkorswim (TOS)
In today’s Gino’s Gems, Coach Gino Poore teaches how to speed up your Thinkorswim (TOS).
Chart of the Day: Nasdaq Bulls Charge ($QQQ)
The Nasdaq is leading the charge Monday morning as tech stocks form a higher pivot low. This is as good a start to the week as we hoped for. Friday’s low is now the new line in the sand. Stay above it, and the daily uptrend remains intact.
Today’s line up
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