Reversal Chart Patterns You Should Know

Stumbled across a pretty useful video for traders of all skill levels. The video discusses several very profitable reversal patterns that can be exploited for some good profits.

Where the Stock Market is Heading In 2018

Trying to determine were the Market is heading in 2018 s quite a tricky question to answer. The McClellan Oscillator, shown above, is showing huge positive divergence. The last time it showed positive divergence was August 2017, where the Market ended up making a huge bull run. Based on the chart above, I will make a case for the bearish/bullish case and I think the reader should pick what they feel is the better argument.

When Will The Bleeding in the Stock Market Stop?

The Market has had a parabolic bullish move in 2018. Parabolic movements in the Stock Market, is something traders need to be very wary of (see Bitcoin's latest parabolic movement ended in over a 60% correction from its all-time highs so far). As a result, I am very cautious about the Stock Market's ability to keep continuing higher in 2018.

However, in the short term, I think the Market is near a bottom. Referencing the McClellan Oscillator above, on Friday the indicator closed near the rare reading of -300 (as of Friday -273). Which means a higher than usual amount of stocks participated in this sell-off, when it hits reading this low (which is rare), the market often hits significant bottoms. Take a look at the chart for previous examples marked in August 2017. Despite my bearish outlook in the Market, expect a nice bounce due to selling exhaustion as indicated by the McClellan Oscillator rating of -273.