Jill asks: “Now that the S&P has opened higher and continued up this morning, what are your thoughts?”
In the longer-term, the strong, bullish conviction-close (daily chart) above 894 in the S&P (basis cash) nudges me in this direction: that the US Stock Market should see a repeat of the 1966 to 1982 pattern.
One point though, […]

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Yesterday I wrote and  introduced Dan Roam’s visual decision-making strategy (Back of the Napkin). We examined the first two elements of the first part of his process as it applies to trading. Figure 1 shows the whole process.
Today, I’ll examine the two remaining elements:

Imagination and
Show

In the ‘Imagination’ phase, we see to answer the questions we […]

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Our decision-making process is dependent on how we take in sensory data and how we process that data. The majority of us are visual-kinesthetic i.e. we process information by seeing and feeling. It’s important that our decision-making reflects this process.
Dan Roam has written an interesting book for the visual learner: ‘The Back of the Napkin‘.
Part […]

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Two announcements:

In our current webinar series, I received good feedbacks for the video I created that tracked a trade from inception to exit of the first third. As a trial, I’ll be posting a similar video each month on the blog. You will need to register so we can send you an e-mail each […]

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Chu Xiao Hang asked: “I am Chu xiaohang living in China. I am reading the book - the nature of trends.My questions is:
I noticed when you draw 5-period barros swing, the filter used is +10% of the adjacent 3-period swing.

Why do not use +10% of adjacent 5-period swing?
When I draw 18-period swing and 60-period swing […]

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