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Michael C. Thomsett is a widely published options author. His "Getting Started in Options" (Wiley, 9th edition) has sold over 300,000 copies. He also is author of "Options Trading for the Conservative Investor" and "The Options Trading Body of Knowledge" (both FT... More
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  • Technical Analysis - Free Live Webinar And Download 1 comment
    Oct 13, 2012 11:35 AM

    This article features a free webinar this Thursday, with a registration link at the end; and of you wish, you can also download the same material to your computer. This is also free.

    How do we time trades? Entry and exit may be wise based on circumstances, but timing is the key to making smart moves well-timed moves as well.

    Confirmation before acting, even on strong reversal signals. is key. I find many sources for reversal as well as confirmation, including:

    1. Candlestick indicators that hint at a coming reversal. Many of these are very reliable. For example, the two-session engulfing pattern leads to reversal nearly 80% of the time.

    2. Volume spikes reveal great interest in the current price, and appear often right at the top of an uptrend or at the bottom of a downtrend. These spikes are exceptionally good confirmation.

    3. Western indicators including price gaps, head and shoulders, double tops and bottoms, and wedges, among others, all help you to time entry and exit with expertise.

    4. Moving averages and how they interact with price, specifically crossing over to continue above or below current price levels, help to bring order to the chaotic nature of short-term price, and may confirm other signals.

    5. Momentum oscillators measure the speed of price trends, and help identify when those trends begin to slow down, showing often subtle changes into overbought or oversold conditions, making these valuable signals.

    6. Proximity of all of these types of reversal signals, meaning specifically that when you see reversal indicators at or close to resistance or support, pay close attention. At these edges of the trading range, reversal is more likely than anywhere else.

    Technical analysis is both science and art. When used to augment fundamental analysis, it helps you to better time entry and exit. But this area of analysis is also complex, so it deserves your careful study. One way to get started is by downloading a free introductory explanation of technical; analysis from the international education company, Ethan Hathaway. The webinar is sponsored by MetaStock, a Thomson Reuters Company.

    To register for the free webinar this Thursday, 10/18 at 7 p.m. (EST), go to http://tinyurl.com/97g26fu

    To download the material to your computer -- also FREE - link to http://tinyurl.com/8qn4c9j

    Michael C. Thomsett is a prolific blogger and helps investors and traders with trading education. He also has written dozens of trading and investing books and writes fulltime from his home near Nashville, Tennessee.

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    Author’s reply » Both the live webinar and the download of this material are free.
    13 Oct 2012, 11:36 AM Reply Like
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