A Two-Bar Pattern that Points to Trade Setups

Trader Education Week begins September 26 Some people like to get outside on the weekends, maybe playing tennis or working in the yard. Some people like to visit their friends or cook a big meal or go out to see a movie. And some people who are passionate about their work — such as Elliott…

Momentum Analysis Using MACD

Learn more about using Momentum analysis to make Elliott wave trading decisions in this video by EWI European Interest Rate Analyst Bill Fox. Find more lessons on technical indicators in EWI’s newest free report. See the information below.

Unsuspecting Bond Fund Investors Are Set Up for a Shock

Why risk in the rebalanced portfolio is ramping higher? During market pullbacks, financial advisors use a boilerplate response: “Let’s rebalance the portfolio.” Investors have heard that one for years. The recommended allocation varies depending on a client’s age and risk tolerance, but it typically involves shifting funds from stocks to bond holdings. The evidence shows…

Pro Football Plays Defense Against Deflation

Downside pressure on prices has only begun You’ve heard (and probably used) the phrase, “I’d rather watch the game on television.” It’s what a sports fan says if he doesn’t want to face traffic jams, inadequate parking, overpriced tickets, noisy crowds, and possibly a poor view of the game. These days, however, something else is…

Big Advantages of Trading with the Wave Principle

Plus: Discover Where to Place “Protective Stops” What advantages does the Wave Principle offer to traders? Here’s one of the big advantages of using the Wave Principle when trading: you can increase your understanding of how current price action relates to the market’s larger trend. Other tools fall short in this regard. Several trend-following indicators…

When an Over-Ripe Market is Ready to Spoil

Reliable internal measures tell a story investors need to know
Anyone who enjoys eating fruit knows there’s a fine line between ripe and over-ripe. If it sits in the fruit bowl too long, over-ripe turns rotten. As experienced investors know, the stock market goes through similar phases. An overbought, or over-ripe, market can spoil quickly.

Take a look at this chart for example (wave labels removed), and ask yourself, is the stock market on the verge of spoiling?