Here is your video update for Thursday, March the 24th.  The dragon pattern is a favorite trading pattern of Trader Rick.  Today the ES formed a dragon pattern and reached full target by the end of the trading day.  Using an overnight globex 5 min chart, Trader Rick illustrates the requirements for a dragon pattern and where to enter and exit.  Note that the feet of the dragon formed at the 1.27 fib extension for the globex session.

This pattern requires patience for the confirmed formation but can yield a nice profit with controlled risk.

Good trading!

Welcome to the video update for Monday, March 21st.   We’ve been following the dragon pattern on the weekly Canada chart since 2009 when the pattern was identified as a possibility.  we’ve witnessed price breaking out of the ‘head’ pattern to the upside and now after many weeks, Trader Rick discusses the target of this pattern.  Are we there?  Trader Rick also takes a look at a 200 tick Canada chart which offered two 9/30 short setups this past Friday.  See how those turned out and what to look for next.

For crude oil traders, Monday is the last trading day for the April contract so be sure to roll to the May contract (symbol K) sometime on Monday.   Looking at the daily continuation crude chart, what are the longer term moving averages telling us?  Things can and do change but being on the same side as the longer term moving averages can improve significantly your profitability.  Note the support levels under the market.  One note of importance is, according to the commitment of traders report (COT), the commercial traders are NOT supporting this current move up.  Something has got to give.

In the stock indexes, the first chart is the S&P cash weekly chart where price is currently in the buy zone.   In the event of a selloff, please note the support levels.  On the daily S&P cash chart, price tested the fib zone and we are now watching the bounce up.  Watch the upper keltner for possible resistance.  Last chart is the 2 bar per day, day session only chart and note the pattern Trader Rick talks about.  Does this have bullish implications?

Good trading!

Welcome to the video update for Monday, March the 7th.   Note that the currencies will be rolling over to the June contract this week and the stock indexes roll on Thursday to the June contract.  Symbol M.  First chart up is the EUR/USD pair weekly chart where last week put in the highest close since the first week of November, 2010.  Trader Rick gives the upside targets as well as support.  On the daily chart, in last week’s video update a possible ab=cd pattern was discussed but price action this past week negated this possibility.  Now Trader Rick is looking at a possible dragon pattern on this timeframe.  Note the target of the tail of the dragon.

Gold traders, take a look at the weekly chart where last week put in an inside week.  Previously, we had a 3 bar candlestick pattern that Trader Rick discusses the implications.  Support and overhead resistance levels are given.

Next chart up is the weekly crude where price continues to accelerate to the upside.  Price has now exceeded the .618 fib extension on the monthly chart.  Support now is at $100, then $93.

Moving to the stock indexes, the ER and the NQ are stronger than the ES and YM.  On the 60 minute ER chart, Trader Rick talks about a possible ab=cd pattern, IF price moves higher.  In the ES, last week was an inside week on the weekly chart, indicating hesitation.  Note the support and resistance levels, especially in the 1283 area.   Trader Rick then analyzes the 2 bar per day chart, the 60 minute and a 9/30 setup on the 43,200 volume chart.

Good trading!

Welcome to the video update for Monday, February the 21st.  Monday is a US holiday and we will see early closes in the electronic session.  The stock index futures will close at 11:30am est.  First chart up is the 900 tick Ten Year note which had an aggressive 9/30 long setup.  Look at this price pattern on this chart because it is one we see over and over.

Trader Rick discusses the weekly EUR/USD pair chart where we have seen 3 weeks of sellers keeping pressure on this market evidenced by the shooting stars.  Last week, buyers stepped in and the week ended with the highest close in a month.  Is the conservative 9/30 short still valid?  The daily chart paints a different picture.  This timeframe has a bullish bias and may be creating a dragon pattern.

In the stock indexes, Trader Rick looks at the weekly ES continuation chart where price is approaching a 1.618 fib extension at just above 1248.  No evidence of a retracement on this timeframe.  On the 60 minute day session chart, please make note of the support levels below the market.  Until these support levels are broken the trend remains up.

Good trading!

Welcome to the video update for Monday, January 24th.  Please note that the FOMC announcement is this coming Wednesday at 2:15pm est.  First chart up is the EUR/USD pair weekly where price moved higher in to the sell zone as discussed in last week’s video update.  Look for a selling opportunity or if price moves higher see what the next target is.  On the daily EUR/USD pair chart price exceeded recent highs so IF price retraces in to the buy zone it will be important to see if price finds support or not.

Since spring of 2009 Trader Rick has been tracking a dragon pattern on the weekly Canada chart.  It’s been awhile since this pattern has been updated so take a look.  We are approaching a major target area. This is a pattern worth getting familiar with if you aren’t aware of it.

Moving to the crude market, price made new highs last week but closed lower than the previous week.  Question now is, if price pulls back, will it find support in the buy zone?

A very interesting development in the stock indexes is the divergence on the daily chart between the DOW and the other indexes.  While the DOW (YM) made a higher high on Friday, the ES, NQ and ER did not.  Either the DOW is going to pull back to the other indexes or the others will catch up with the DOW.  Do not expect this divergence within the stock indexes to last long.

Trader Rick shows the underlying levels of support in the ES so be sure to check these out.

Good trading!

Welcome to the video update for Monday, November the 1st, 2010.  Remember we have FOMC announcement on Wednesday, the 3rd, and employment on Friday morning.  This video update will cover the big picture since we are starting a new month.  Always check your monthly at month end in to review the big picture.   First chart is the monthly EUR/USD pair where price is in the sell zone.  We have the potential for a conservative 9/30 short setup.  A close below last months low will be the trigger.  The weekly EUR/USD chart currently has 3 candles indicating hesitation.  Will we continue higher or do we pull back?  Note Trader Rick’s one concern with this chart.  The daily chart has two patterns that may develop.

The big picture in gold is shown on the monthly chart.  Any signs of trend reversal?  Where is support? If you trade gold take a look at the 60 min chart.  Dragon pattern? 

Trader Rick looks at the weekly yen chart.  Note where the overhead fib extension is. 

Next chart is the monthly crude.  Is the bias to the upside? 

In the stock indexes, the monthly S&P cash chart is moving higher after triggering an aggressive 9/30 long a few months ago.  Check out the weekly chart too.  Last charts are the ES daily and 203 minute charts for the larger picture look. 

Good trading!

Welcome to the video update for Monday, September the 20th. First up is the EUR/USD pair weekly chart where price moved higher last week. Currently, the trend and momentum on this timeframe are up. Bias is up also on the daily chart with price trading outside the upper keltner channel the last 3 trading days. Note first level of support IF price retraces.

The dragon pattern on the weekly Canada chart is updated by Trader Rick. Take a look if you are not familiar with the dragon pattern.

Another market not mentioned lately is the gold market where price made new highs last week. See where the measured move target is first talked about back in the fall of 2009.

If you are a crude trader, Monday is the last trading day for the October contract. Move to the November contract by the close of trading on Monday. Symbol is X for November.

Next up is the weekly 30 year bond futures chart. Price is retracing in to the buy zone after a good trend move up. From a market structure point of view, look for price to find support just below the 124 level, most likely higher.

Moving to the stock indexes, Trader Rick looks at the two bar per day chart where price last week tested the 1126-1127 level again. What is the next target if price moves thru this level of resistance?

Good trading!

Welcome to the video update for Monday, August the 30th. First chart up is the EUR/USD pair weekly chart. Still no valid 9/30 setup but look at the indications that we may see higher prices. Or will we? The daily chart has a bearish bias. If price moves higher watch the price action in the sell zone. Slow sto and the 3x indicator are both down. Note where resistance is to the upside.

Trader Rick normally doesn’t comment on the 30 year bonds or the 10 year notes but if you are a bond trader take a look at the weekly chart. What is the candlestick that formed last week? Any divergences? See what the daily and 60 min charts are telling us.

Next up is the S&P cash daily chart. If prices move higher watch the 1080 to 1083 zone for resistance. Be sure to take a look at the 60 minute chart where Trader Rick spots a potential dragon pattern. Watch if this pattern plays out or not.

Knowing market structure on the ES chart helped Trader Rick spot a possible buy setup in the first hour of trading last Friday. We had daily support at the 1037 area, plus the 1.27 fib extension on the globex 5 minute chart came in at 1038.25. The 4800 volume chart provided the entry off a buy divergence at the lows of the day. This was Trader Rick’s only trade on Friday.

Watch the 1083 area in the ES for overhead resistance.

Good trading!

Welcome to the video update for Monday, June 28th. Trader Rick will start with the monthly EUR/USD pair chart where the month of June is going to finish completely outside the keltner channel, indicating current momentum is strong to the downside. Note the D target of the ab=cd pattern. The weekly chart shows overhead resistance levels.

The EUR/JPY pair monthly chart shows a divergence to be aware of. Bullish? The monthly Canada chart is up next and you will see what candle is currently forming. Underlying support is very clear on this chart. The dragon pattern on the weekly Canada chart is still in play.

Trader Rick discusses the monthly and weekly gold charts where price is trading just above the 1.618 fib.

The next chart is the monthly crude where we are currently in a trading range and price is in the buy zone.

Moving to the index charts, the theme of these charts is the doji candlestick. Take a look at the Dow, the S&P cash, and the ES charts and you will see doji. On the daily ES chart, is the dragon pattern still intact?

Good trading!

Welcome to the video update for Monday, June 21st. In this video update, Trader Rick talks about 3 things on the EUR/USD weekly chart that gets his attention. See what they are. On the daily EUR/USD chart, see what often happens after a descending triangle in an extended run.

Next chart up is the weekly Canada chart and after holding support at the 9212 level, what is next? Don’t forget, the dragon pattern on the weekly chart remains in play.

Gold made a new high this past week, closing above the $1250 level. What is the next target to the upside?

Trader Rick goes over the weekly and daily crude charts. Be sure to check out the quick quiz on the daily chart!

Moving to the stock indexes, first chart is the Dow weekly chart where price broke out of a trading range this past week. See what Trader Rick expects next. If you trade the YM or the ES be sure to watch this video update for important trading information.

Good trading!