"Uptrends have higher highs and higher lows; downtrends have lower lows and lower highs. The question arises: How many higher highs for an uptrend and how many lower lows for a downtrend? I prefer to see at least two higher highs for an uptrend and two lower lows for a downtrend.
For and uptrend, if I see only one higher high and higher low, I rate that as only a ‘potential uptrend”. Naturally, in a downtrend, I want to see at least two lower lows; one lower low, lower high… I rate a potential downtrend."
~ Ray Barros Book: The Nature of Trends: Strategies and Concepts for Successful Investing and Trading
"… I want you to be aware that this art (technical analysis) is not
perfect. It can and does fail from time to time. In technical analysis, we are
dealing in probabilities, and even when the odds are heavily in our favor, it’s
still possible that things won’t work out as we would like or expect."
~ Except from Book "Introduction To Technical Analysis" By Martin J. Pring
* The on-balance volume (OBV) indicator is a cumulative total of volume, calculated by adding the volume on days the price is higher than the previous day and substrating the volume on days the price is lower than the previous day.
* The OBV indicator tells you how much money is flowing into or out of an instrument.
* If OBV is falling, it indicate that people are selling the stock, conversely, if OBV is rising, it means that people are buying into the stock.
* Premise – if a stock is going up, meaningfully, good volume is needed (vice versa, same holds true, if a stock is decreasing).
* If the stock price is going up and the OBV is coming down, an indication that the stock is being distributed (i.e. sold) be the smart money.
Bollinger Band
More on Bollinger Band (both video and written explanation) can be found at bollinger band.
"His money making style was about mammoth home runs and many small strikeouts. If there was a ‘secret’, he knew that you had to be able accept losses both psychologically and physiologically."
~ Michael W. Covel Author, The Complete Turtle Trader The Legend, the Lessons, the Results On
Richard Dennis’ Trading Style
