Technical Analysis

NFTRH maintains premium chart package subscriptions with Stockcharts.com and TradingView in order to have the full range of Technical Analysis tools available in our analysis. This includes all-important ratio (macro indicator) charts, nominal charts of stocks, indexes and virtually any publicly traded asset.

There is no one-size-fits-all in TA, with far too many tools available for any one chartist to use effectively. As Stockcharts founder John Murphy once said you take what works for you and leave the rest. In other words, TA is fully customizable to individual style. As a side joke, and as a TA, I came up with this shtick simply to keep myself and any other TAs reading, more humble. It’s a tool, not a be all, end all!

Some of the most important tools in our TA toolbox include Support/Resistance, Moving Averages (and the trends they indicate). Simple stuff. Chart Patterns are considered when these readily identifiable aspects are married with momentum indicators like RSI and MACD and trends and support/resistance areas. Using these simple tools, probabilities are refined for certain outcomes. That’s especially true when combined with NFTRH’s other aspects, like macro and sentiment/psychology.

Let’s dial out to a big picture example of nominal TA working for us through both a current correction, and a projected future bull phase. Gold’s monthly chart is in a bullish Cup & Handle pattern.

Ah, but don’t forget the handle, dear gold bugs! While NFTRH originally (in 2020) projected “extended handle-making” to come in 2021, the view was refined along the way using our tool. As of 12.30.21, the implication has been not to get frustrated waiting for gold (there’s a whole wide world of assets in motion out there, guys) but to keep it in mind because when it finally breaks this handle well, there’s the target…sometime in 2022 we’ll find out if the big TA view – and the man staring at the chart – are right!

Meanwhile, NFTRH continues to manage the here and now quite astutely thanks to its disciplines.