Some traders look for signals, others look for magic. Charts provide many signals, but the reliable ones are not magic by any stretch of the imagination. They are based on being able to predict what happens next. You cannot expect a sure thing. But a strong signal improves the odds in your favor. Among the… [READ MORE]

Strong signals are not rare, but often difficult to identify. A subtle development can signal the best timing for an advantageous options trade. An example of this is the “cup and handle,” a bullish signal. It tells you that the current trend is not over yet. It can take several weeks to form. It can… [READ MORE]

How can you tell when a trend is ending? For example, during a bear trend, you are likely to discover numerous short-term bullish moves or retracements even as the longer-term bear movement continues. One signal worth looking for is the dead cat bounce. This is a pattern in which the downtrend is interrupted by a… [READ MORE]

A valuable early warning signal, the blue ice failure, has several parts: a 50-day moving average (50MA), test of support, and candlestick reversal and continuation signals. All technical signals help improve trading. This is true if they increase your idea about the next direction price is likely to move. You can never expect to have… [READ MORE]

The big appeal of covered calls has always been the double-digit annualized return that is not only possible but likely. Gains come from three sources: capital gains on stock sales, dividends, and option premium. But is it always profitable? No; you can lose money writing covered calls and even experienced options traders can easily overlook… [READ MORE]