Chart Art Shows This Rally's Just Getting Started

What’s goin’ on everyone? There comes a time in every trader’s career when being able to identify interesting technical setups becomes second nature. Now, I can understand how, as a new trader, you might be seeking instant satisfaction with your trading results. But to become great at anything in life means you must first go through a sufficient maturation process. Take my youngest son, for example. He is still in the process of losing his baby teeth but somehow thinks he is ready for the NBA. To become the best trader you can be, don’t just look for popular chart patterns like “flags” and “death crosses.” Instead, learn to bring a few secondary indicators (any indicator other than price) into your analysis to help confirm the patterns you may be seeing on a price chart. I found such a setup on the daily chart of T (AT&T Inc.) on Friday, and things are really starting to come together now. The price patterns that work best are the ones that are being confirmed by indicators such as volume, sentiment, and momentum, just to name a few. Raging Bull’s co-founders [Jason Bond]( and [Jeff Bishop]( have built VERY SUCCESSFUL trading careers by using a select few bread-and-butter setups that are built on price action and volatility indicators, while our newest guru [Jake McCarthy has made it to where he is today by using patterns and data sets that are unique to the cryptocurrency universe](. And while I depend heavily on TTM_Squeeze and unusual options activity to steer me in the right direction, there is one indicator that I usually use to determine if the foundation of a possible [trade idea]( is strong enough [before I bring it to the attention of my members](. On Friday, I highlighted one of these complex setups in one of my trading services, specifically because of the message it sends about the foundation T is starting to develop for bulls. So why did T make it to the top of my list on Friday? Well, what usually happens first is that I’ll get a signal from one of [my “smart money” scans]( that indicates a stock has just witnessed an unusually large trade. And that was certainly the case on Friday, when my scanners warned T had just witnessed a MASSIVE, MASSIVE purchase in the 16 Sep 22 $24 Call option. Once it made it onto my radar, my chart master Ethan Harms and I then looked at all the supporting chart evidence. What we saw was this wonderful collaboration of bullish chart developments that I’ve painted for you on the chart below. What’s the key takeaway from all of this? The key to this setup is one that I hope you remember to look for going forward, and that is the transition from a bearish regime to a bullish regime by the RSI indicator, which, in addition to being a momentum indicator, is an excellent trend strength indicator. And what’s the beauty of this trade idea? Well, it’s that the contract that saw the MASSIVE buying on Friday doesn’t expire until September 16th (that’s a lot of time), and only costs a little over $1 to purchase. Friends, what you don’t see here are the dozens of possible ideas our expensive scanners produced and that Ethan and I weeded through, as we do EVERY TRADING DAY, to find this inexpensive, high probability setup for our members. If you think you have the time and resources to find where the “smart money” is rotating like this each day, please leave a comment below, I’d love to hear about your process. Let’s have a great rest of the week and until next time! Ben Sturgill [Alternate text]( [Image] [Facebook]( [Twitter]( [Instagram]( [LinkedIn]( RagingBull, LLC 62 Calef Hwy. #233, Lee, NH 03861 [Unsubscribe from all RagingBull emails]( © Copyright 2022, RagingBull DISCLAIMER: To more fully understand any Ragingbull.com, LLC ("RagingBull") subscription, website, application or other service ("Services"), please review our full disclaimer located at [(. FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. Any RagingBull Service offered is for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation, or be relied upon as personalized investment advice. RagingBull strongly recommends you consult a licensed or registered professional before making any investment decision. RESULTS PRESENTED NOT TYPICAL OR VERIFIED. 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