Interpreting Classic Chart Patterns – Technical Analysis 4

Featuring Dave Floyd

As Dave Floyd continues the Technical Analysis series, you’ll be able to not just identify the classic chart patterns used by traders around the world, but more importantly, understand what signals the charts are telling you. Episode 4 of Technical Analysis includes the head and shoulders pattern, volatility breakouts and candlesticks, while crucially, helping you decide if the charts are bullish or bearish.

Filmed on February 9, 2017.

Published on
13 February, 2017
Topic
Technical Analysis
Duration
31 minutes
Asset class
Equities, Currencies
Rating
21

Comments

  • PC

    Peter C.

    4 7 2017 12:52

    0       0

    I really enjoyed this video Dave, thanks v. much. I'm relatively new to Technical Analysis so found a lot of this helpful. Seeing actual trades really brings this all to life

  • PS

    PD S.

    27 2 2017 00:52

    2       0

    good video, dave of aspen trading group is da man! :)

  • RO

    Robert O.

    26 2 2017 19:23

    1       0

    Dave, do you use Momentum Analysis (Michael Oliver interview) to help your shorter term trading decisions?

  • JC

    John C.

    20 2 2017 13:49

    0       0

    Thanks Dave really enjoyed this. Have been making a little money trading 'golden crosses' and SMAs lately so funny to realize how I'm effectively 'flying blind' by not using the other metrics when setting up a trade. One thing I'd note is that I'm using options and thus not setting stops (from what I've read it's too volatile, too easy to get stopped out on a big uptrend, and liquidity too small) so am constantly having to figure out when to 'get out' and take profits of XYZ trade. I think EW is pretty important in judging tops and when to take profits so would really enjoy more on that. Thx again.

  • WM

    Will M.

    19 2 2017 19:48

    1       0

    Not a trader Dave, but have followed Elliott Wave for 20 years so am familiar with it. I like your multi faceted approach. Makes great sense. Thx

  • DF

    Dave F.

    18 2 2017 20:43

    2       0

    Hi Janusz - I use MotiveWave - highly recommended, makes EW and other basic TA routines/overlays much more efficient.

    http://www.motivewave.com/?af=3780006&c=ASPENPUB

  • JS

    Janusz S.

    18 2 2017 16:11

    0       0

    What TA software do you use ?

  • DF

    Dave F.

    17 2 2017 04:23

    3       0

    Traders, here is a new blog post where I discuss closing a SPY Put Spread. It should prove useful in understanding how to manage exits using basic technical concepts.

    I go into more depth in Video #5 of the TA series regarding this trade so a more comprehensive explanation is forthcoming. I just finished shooting TA #5. It should be posted on Feb 20th.

    http://www.aspentrading.com/64-in-spy-put-spread-now-what/

  • DF

    Dave F.

    16 2 2017 04:32

    2       0

    Justin C.....glad to hear I roped you back into the fold. Keep on pushing and studying and you will begin to see the benefits of using TA.

  • JC

    Justin C.

    15 2 2017 22:53

    3       0

    I must admit I had stopped watching these videos months ago as I found them too esoteric. Having read a bit about TA, this beginner's series is just what I needed. Really helpful. Thank you.

  • DF

    Dave F.

    15 2 2017 17:12

    1       0

    Morning Brad. Dynamic Trading by Robert Miner, Elliott Wave for FX by Robert Balen and The Elliott Wave Principle and if you want the rubber to meet the road and actually do analysis with EW, look no further than Motive Wave Charting Software http://www.motivewave.com/?af=3780006&c=ASPENPUB

  • BG

    Brad G.

    15 2 2017 16:57

    1       0

    Dave,
    Any recommendations on Elliot wave readings to begin researching? Thanks!

  • JL

    Jimmy L.

    15 2 2017 15:01

    8       1

    My whole problem with Elliott Wave is that if the market moves in the opposite direction of your count, you can always go back to re-label the counts, Elliott wave structure always looks perfect on hindsight or just before the big move unravels to prove you wrong........the parameters defining EW counts are so wide when it comes to corrective waves that at any point in the chart you can probably count up or count down....but because the parameters to counting are so wide, an EW practitioner at some point will get a range of counts right reaffirming his belief in EW....I think EW in TA is akin t what a pair of lucky shorts is to a MMA fighter...the more potent tools of TA are probably the multitude of indicators which can be backtested and used to build a trading system...but hey if EW makes you more confident as a trader, do what wilt thou shall do the whole of thy law

  • XZ

    Xriva Z.

    15 2 2017 13:38

    4       0

    Loving this series - keep 'em coming !

  • SR

    Sean R.

    15 2 2017 07:16

    1       0

    Thanks for that, Dave. Great stuff. Will get cracking on Elliott Wave.

  • DG

    Don G.

    15 2 2017 01:37

    3       0

    Once again, keep it up. I love this stuff. Great stuff!

  • T~

    Tshort63 ~.

    14 2 2017 20:23

    1       0

    Thanks David, I am really enjoying this series. I had the epiphany moment I've been working towards with technical analysis during this segment. You provided the Rosetta screen I needed. I read voraciously and have my own shorthand for reading charts in newsletters etc. More like Tongo in Blazing Saddles - ugh, good and ugh, bad. Today everything fell into place so I have about three more gradients in each direction. I can now look at the charts and understand the implications further.

    Would love to see a rewind on scenarios not to see right or wrong but the degree of the outcome.

    QQ: You mentioned the head and shoulders pattern and 950 point opportunity but said you would not be in it for "years". Is there a correlation ratio between a 950 delta over x months to the potential return over x months?

  • Js

    Johns s.

    14 2 2017 19:29

    0       0

    good one.

  • PD

    Paul D.

    14 2 2017 17:29

    2       0

    Thanks Dave - the leading diagonal concept was very interesting - filled a gap in my Elliott wave knowledge.

  • RM

    Richard M.

    14 2 2017 16:06

    0       0

    Very enjoyable Dave! It's always interesting to see how various technicians arrive at their conclusions (and what kind of indicators/methods they use to do that).

    Looking forward to your future pieces!

  • SG

    Samuel G.

    14 2 2017 10:49

    2       3

    Am I the only to find a striking resemblance with the main character in the TV show Billions? Great educational series Dave, thanks!

  • ML

    Michael L.

    14 2 2017 07:30

    28       0

    Dave may I suggest you do a session on elliott wave basics since that is referenced so often in your work. thanks!

  • DF

    Dave F.

    14 2 2017 04:22

    4       0

    Just an update - the live trading event I mentioned in the beginning of this video is nearly 'confirmed'. I am calling it 'Trading Round-table at The Ranch' and it is scheduled to be held on May 5th and 6th here in Bend Oregon at Brasada Ranch - www.brasada.com

    I have a total of 7 pedigreed and high profile traders giving presentations with 2 round-tables.

    Get notified when registration begins: http://www.aspentrading.com/events/

  • DF

    Dave F.

    14 2 2017 04:12

    1       0

    Thanks Jon S....greatly appreciated.

  • JS

    Jon S.

    14 2 2017 03:11

    11       0

    Dave, you are a natural born teacher.