This is the one we all need to watch.
I don’t think it has to be any more complicated.
The strategy here is very simple: [Read more…]
Expert technical analysis of financial markets by JC Parets
by JC
This is the one we all need to watch.
I don’t think it has to be any more complicated.
The strategy here is very simple: [Read more…]
by David
This is the video recording of our November 4, 2022, All Star Charts Crypto Weekly Strategy Session.
by Louis Sykes
Risk assets sold off following the latest move by the Federal Open Market Committee to hike interest rates by 75 basis points.
As always, we prioritize how markets price in these events and, ultimately, how they react to the actual print.
That’s because the market is a forward-looking discount mechanism; price action reveals a collective expectation of events before they take place.
Rather than focusing on the minutiae of the CPI and/or the workings of the FOMC, we prioritize money flow.
by Louis Sykes
Dogecoin and other meme coins are seeing a boom off the back of Elon Musk’s takeover of Twitter.
It isn’t isolated to the Doge. A slew of meme coins have been born since Elon tweeted an image of a Shiba Inu dog wearing a Twitter t-shirt for Halloween.
It’s hilarious that his tweets never fail to pump these things.
— Elon Musk (@elonmusk) November 1, 2022
So, is a new meme coin season upon us?
by Louis Sykes
As technicians, we pride ourselves on never being dogmatic in our approach. If new data that invalidates our initial thesis presents itself, we’re always willing to flip our approach.
Yesterday, we wrote that Ethereum testing a significant support zone suggests this rally is mean-reverting in nature. In that same breath, though, we noted that it’s wise to treat every chart on its own merits.
If you adopt an overly broad picture of markets, you’ll often miss some of the most straightforward trading opportunities.
With all that said, a few names are shaping up nicely in this tape.
by Louis Sykes
Mean reversion is a universal element of the world we live in.
Reversion to the mean is a statistical phenomenon stating that the greater the deviation of a variable from its mean, the greater the probability that the next measured variation will deviate less.
In other words, an extreme event is likely to be followed by a less extreme event.
In financial markets, mean reversion is everywhere. This is especially the case in bear markets when prices dramatically rally following prolonged periods of sustained weakness.
As John Roque, one of the GOATs of technical analysis, would say, “We’re not in a reversion to the mean business. This is instead a reversion beyond the mean business.”
Specifically, asset prices retracing to their statistical average isn’t the rule, it’s the exception. Rather, in most cases, asset prices will often overshoot their “averages.”
With crypto markets bouncing over the last week, it raises the question, is this just yet another mean reversion rally, or does this move have some legs?
by David
This is the video recording of our October 28, 2022, All Star Charts Crypto Weekly Strategy Session.
by Louis Sykes
Bear markets are infamous for their counter-trend rallies.
Breakouts fail, and the charts are painted with false moves.
Throughout this bear market, traders have bought the breakouts to then dump the next day into an illiquid tape.
Given the gains we’ve seen over the last few days, I think it’s important we step back.