Five Essential Stock Chart Patterns
Markets are driven by two of the most powerful emotions – fear and greed.
And because of that, we need to be mindful of where fear and greed are running amok whether it is in stocks, ETFs or indexes. Having this knowledge can help us better exploit extreme moves.
Double and Triple Top Patterns
As some of you are aware, topping patterns can represent the very moment when selling pressure begins to overwhelm buyers. With double and triple tops we’re able to identify historical points at which a stock begins to fail over and over again.
Look at Apple (AAPL) for example.
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Marijuana Trading for Pennies on the Dollar
In the U.S. alone, analysts peg the marijuana market with a $22 billion to $50 billion valuation by the time 2020 rolls around. Fueling the boom even more is the fact that more than 60% of Americans want marijuana handled no differently than tobacco.
In short, the industry has been explosive. Sales were up 30% last year and could easily double, if not quadruple in years. All as up to 60% of Americans said they favor the legalization of recreational marijuana use.
The Most Important Concept in Technical Analysis
The trend is the most important concept in technical analysis.
Its strength or weakness can dictate the overall direction of your favorite stock or index. Potential uptrends can be characterized by a series of higher highs. Potential downtrends can be characterized by lower lows.
Look at the NASDAQ Biotech ETF (IBB), for example.
Three Top ETFs to Watch
Exchange-traded funds have always offered more of a bang for your buck.
If I wanted to buy 10 shares of Alphabet (GOOG), Facebook (FB), Amazon.com (AMZN) and Netflix (NFLX) right now, it’d cost me $22,210.
However, with an ETF like the Advisor Shares New Tech and Media ETF (FNG), I can gain exposure to those same stocks for $19.88 a share, or $1,988. That’s a savings of more than $20,000 for similar exposure.