Flip The Chart

Whenever I think I'm being too biased about something, especially in my own technical analysis, I perform a simple, but effective trick. I just filp the chart and see if my analysis would be the exact opposite. In other words, if I'm bullish on a chart and I flip it, frankly I should be bearish about it and vice versa. As an example, let's take a look at the following chart:

Given this simple read, would you say this is a bullish or bearish just looking chart? I'll give you a hint - most would say that this setup is bullish since we have a breakout on confirmed high volume. In case you're also wondering, this is the flipped chart of the Dow. Does that change your opinion about this chart?

Using this simple, but effective technique can work wonders, especially if you think your emotions and position holdings are clouding your ability to make the right call. When going over your holdings this weekend, you may want to do some chart flipping to see if your analysis is consistent and whether your feelings, rather than objective analysis, are now calling the shots.