Sharper Blog

The Trading Blog for Technical Traders

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...

READ MORE

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...

READ MORE

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...

READ MORE

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 %K is set to 12. We choose the period...

READ MORE

Difference between Doji and Spinning Top

Question for a student: "I still dont see the real difference between spinning top and doji. They both basically need further confirmation. What am I missing?" Spinning Top and Dojis are very similar and they mean the same thing: Doji indicates indecision. Spinning Top indicates greater...

READ MORE

Market Conditions and Technical Trading: SPY, SVU, LC, RAX

Looking at today's market condition, despite a three day pullback, the SPY is holding above support at 217.37. Technicals are holding and market still looks bullish. We should see what it does tomorrow. We are reviewing the technicals and some profit targets for three stocks. One...

READ MORE

Trading the Technicals - SVU

Supervalu.Inc (SVU). Technical analysis and price action following positive news. Yesterday, August 15, 2016 SVU price jumped almost 9% following the positive announcement that the company reached an agreement to be the grocery wholesaler and distributor for Fresh Market, a specialty...

READ MORE

How Does the Weekend Affect Stock Markets?

If you are one the many wondering how the weekend affects stock markets around the world, here is an answer for you. Stock markets are open Monday to Friday (9:30am to 4pm New York time). If no major news is reported during the weekend, the regular session will resume on Monday and price...

READ MORE

Trading the Earnings - SVU

Supervalu.Inc (SVU). Technical analysis and price action following earnings report. On Tuesday July 27, 2016 the company released a disappointing earnings report. Price opened below the descending trend line, pulled up a few points and then it came down hard. The following two days,...

READ MORE

Follow up Analysis on Supervalu.Inc (SVU)

This is a follow up analysis on a stock we have been watching during this week: Supervalu.Inc (SVU). As of today, some investors are closing positions in preparation of the earning release that is scheduled for Tuesday July 27. The 8 exponential moving average is not longer holding support,...

READ MORE