David Jones

Where next for stock markets?

Where next for stock markets?

7 mins. to read

Given what we have seen in stock markets in recent weeks, it was easy to pick the topic for this month’s charting article. Volatility has jumped, world markets fell heavily – is it the beginning of the end of the long trend upwards for shares? A recent history lesson Let’s go back to where this…

Is the euro set to dominate the pound?

Is the euro set to dominate the pound?

5 mins. to read

Given the fact that you can barely watch the news today without the “B” word rearing its head, I thought it could be timely to take a look at the fortunes of the pound versus its nearest currency neighbour, the euro. The market convention is actually to quote this the other way around to what…

How to know when to sell

How to know when to sell

7 mins. to read

The novice investor or trader often obsesses about where to get into a trade or investment and may spend much time trying to refine this process. Indeed there is a whole industry around  the perfect entry signal; buy now or miss out on massive gains, XYZ share cannot go any lower… Of course, we all…

How to trade breakouts: buying into strength

How to trade breakouts: buying into strength

7 mins. to read

Last month saw some interesting statistics concerning the US stock market. Unless you have been living in a cave in recent years, you will be aware that the major US indices have continually pushed to fresh all-time highs. The latest leg higher within that multiyear trend started after the US election last year – markets…

How to spot trend reversal and continuation patterns

How to spot trend reversal and continuation patterns

7 mins. to read

Some people will dismiss technical analysis and charting as just squiggly lines on a chart – and I for one am not the biggest fan of the chart pattern approach to trading or investing. That aside, there are often sound changes or shifts in investor sentiment that underpin the various patterns that are a major…

How to use this common market indicator to your advantage

How to use this common market indicator to your advantage

1 mins. to read

One of the appeals – and drawbacks – to technical analysis for some are the many, many ways of analysing historical data on a chart. Before home computers and sophisticated investing software, many charts were either in paper format or on dedicated terminals, primarily used by City institutions. Now of course, you are only ever…

How to use stop-losses to maximise profits

How to use stop-losses to maximise profits

1 mins. to read

In my opinion, investors/traders don’t spend enough time on putting together a strategy that helps them decide when to get out of a profitable position. All of the effort gets channeled into finding a perfect system for where to get in – which of course doesn’t exist! But where you finally get out is what…

Charting a path to success

Charting a path to success

1 mins. to read

One of the many common criticisms that could be aimed at a charting approach to the market (and there are quite a few): If it works, why aren’t all chartists fabulously rich? It’s a fair comment – but also one that could be levied at the fundamentalists’ approach as well. The problem with most forms…

How to understand candlesticks

How to understand candlesticks

1 mins. to read

This month we will take a look at a sub-division of the world of charting and technical analysis – the Japanese candlestick chart and a couple of associated patterns. This form of representing price data has become very popular in recent years.  It is an approach that is thought to date back to the 18th…

How to understand the RSI index

How to understand the RSI index

2 mins. to read

The last twenty years have seen significant growth in the use of technical analysis and charting. The growth of the internet and much more trading by normal retail investors has played a big part in this. As its use has increased, the software we use to try to analyse markets has got ever more sophisticated.…