Sharper Blog

The Trading Blog for Technical Traders

Reading Candlestick Charts

In order to accurately read trading charts, you need the opening price, the closing price and the high and low of the day (or whichever timeframe you are using). Candlestick charts are similar to the bar charts as they both display the complete trading range by showing the four important...

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Overbought and Oversold Conditions

One our students recently asked us this question: "You use the terms over bought and over sold at times. What do they mean? and how can they help to find a profitable chart?" Oversold simply means that the stock price has reached a TEMPORARY bottom and buyer are most likely ready to come in and...

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Overbought and Oversold Conditions

One our students recently asked us this question: "You use the terms over bought and over sold at times. What do they mean? and how can they help to find a profitable chart?" Overbought simply means that the stock price has reached a TEMPORARY bottom and buyer are most likely ready to...

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Trading the Technicals - CARA

Cara Therapeutics, Inc (CARA). How long can the bullish run continue on CARA? So far, the stock continues to tear up the chart, now up about 100% since we first put it in front of you. The story continues to be phase IIb clinical trial of its oral formulation of CR845 for the treatment...

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Trading the Technicals - VLO

Valero (VLO). Technical analysis and price action following newly elected US president. Following the November 8 election result, oil and gas exploration companies, as well as the infrastructure and financial sectors, have experience a big jump in price action. Looking at VLO...

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Best Trading Strategy to Use

This is a question that I get asked often. What is the best strategy I can use? Well the answer to that question is simple. It depends on your trading strategies, meaning whether you are day trader, swing trader, or an investor. Generally we look for stocks that have broke above major...

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Are Candlestick Charts Reliable?

A few days ago someone on Quora asked me what has been my experience using Japanese candlestick charting analysis. I love Japanese Candlesticks. In my opinion Japanese candlesticks are very effective when combined with other indicators (moving averages, volume activity, ichimoku) as well...

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Where to Place Your Stop Losses

After a pullback, we expect price to rest right around a support area. We might see price dipping a percentage or two below the support area. We might also see lower shadows (buying signals). However we want to see price closing right around support level. So in this scenario, where would...

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State of the Market

US stock indices have been trading sideway for the past month. Looking at the SPY we are seeing three major areas of resistance/support (217.69, 214.45, 212.80). In the short-term price is undergoing bearish pressure with the upper resistance trend line, the 50SMA and the 34EMA holding...

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Stochastichs: Slow, Fast, Full?

What kind of stochastics should we be using in your charts? Stochastics is one indicator. Fast, slow and full are merely definitions of that same indicator. The settings we choose is what defines whether that stochastics is fast, slow or full. Fast Stochastis %K is set to 3. This is the...

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