Karma Trades

Remember  Heikin Ashi candles? A couple of weeks ago I ran into an interesting video detailing a swinging strategy using Heikin Ashi candles. The strategy was easy to follow and had a win rate of above 70%. I tried it a couple of time on $TNA & $TZA. And it quite worked, so I'm sharing it with you. While I didn't like the way he averaged down when in a losing positions, the strategy is still...

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Candlesticks are a great method to plot a chart, but there's another way to plot those candles. It is called the Heikin Ashi Technique. This charting method uses the same principles of traditional candlesticks, but it changes the open,high,low and closing values of the candlestick. New Values: Close = (Open+High+Low+Close)/4 = Average price of the current bar Open = [Open (previous bar) + Close (previous bar)]/2 = Midpoint of the previous bar High  = Max...

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Note: This post is taken directly from StockCharts's ChartSchool. There's many other patterns that I didn't mention and, while they are not as popular or importan, I believe it is useful to have an idea of what each pattern may signal. So here's a list of over 30 patterns and a small descriptión of what they mean. Enjoy! Abandoned Baby: A rare reversal pattern characterized by a gap followed by a Doji, which is then...

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Just as there are Bullish Reversal Patterns,  there are Bearish Reversal Patterns that will signal the end of a bullish trend and a shift in momentum. These patterns are very similar to those on the bullish side, just that they are inverted. These patterns are: Shooting Star The shooting star pattern is the bearish counterpart of the hammer. It is composed by a small body and a long upper shadow. This pattern usually appears at...

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Being able to anticipate a trend shift is a basic skill for a trader. If you are able to recognise when a trend is likely to end you will increase your chances of making a succesful trade. While sometimes a trend will change without notice, most of the time it will when it's nears a resistance/support zone; but also, when a chart goes into a support/resistance zone, the stock can breakout/breakdown, so, How can we...

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