A previous article set up three variations of a bear spread on Priceline (PCLN). The signals looked bearish so this seemed reasonable at the time. However, in one week the price moved up about 90 points, leading to a different set of challenges. As of Friday, October 6, a set of recovery strategies was required… [READ MORE]

At times, the chart indicators are so strong in one direction or the other that a particular strategy simply makes sense. For example, if the pattern looks bullish, why just buy a call (or two)? Alternative strategies may allow for both bullish and bearish moves, while favoring the bullish side. For example, the strap is… [READ MORE]

The popular charting “school of thought” is that reversal signals have to be either bullish or bearish. Here’s a new way to think about these signals: When stock is trading in consolidation, a reversal (or continuation) signal may forecast successful breakout. In other words, the signal applies to the trend and not just to the… [READ MORE]

Based on the price pattern found on the chart, at times it is easier to decide whether the situation is bullish or bearish, than to pick which strategy to use. This presents a problem for traders who may not be able to quantify the risk level without knowing how much movement to expect. For example,… [READ MORE]