Friday, May 18, 2007
Trading Ideas & Picks
Trading Picks - Read More
JCP - Stock recently broke below the neckline of a head and shoulders pattern. This bearish pattern suggest that the uptrend is becoming exhausted. The chart also illustrates the opportunities that are available when they are identified...
Trading Ideas & Picks
Trading Ideas - Read More
NTRI: Stock confirmed a MA crossover up which started in early April with a bullish gap up a couple weeks later. Stock has since been consolidating in a nice sideways range as the Moving Averages catch up. Look to go long at 60.01...
Trading Education Tutorial
Fibonacci Retracement Levels
Using Retracement Levels in Your Trading
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Fibonacci Retracement Levels
Using Retracement Levels in Your Trading
Fibonacci Retracement Levels are one of the most powerful (and underused) tools available to traders. These measurements are of great use with any market that is reasonably liquid. Many technicians have noted that markets tend to reverse or consolidate once they reach one of these ratio levels (measured from the distance of the previous trends reversal). They can used as entry levels, exit levels and even as a money management tool.
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NASDAQ Chart of the Day
Courtesy of Nirvana Systems
Daily Trading Signals
Courtesy of Nirvana Systems
FWLT has rallied on big strength, but is beginning to lose gas on high volume, which means we could be seeing a volume climax soon. Watch for a break below 90.00 for signs of a big potential retracement.
Daily Trading Signals
NYSE Chart of the Day
Courtesy of Nirvana Systems
Daily Trading Signals
Courtesy of Nirvana Systems
RCL continued to build out its large triangle pattern and finally looks ready for a breakout move. The stock is testing the lower boundary of the triangle at 40.50, which we will watch closely for a downside break. Such a break could spark a move of about 6 points.
Daily Trading Signals
Thursday, May 17, 2007
Technical Indicators
Price Volume Rank
Read More...Price Volume Rank is a simple analysis developed by Anthony Macek using just two sets of data, Price and Volume.
Macek describes the indicator as, "for those with neither the time nor the inclination to master the techniques necessary to monitor every blip and sputter that the market produces...."
Macek describes the indicator as, "for those with neither the time nor the inclination to master the techniques necessary to monitor every blip and sputter that the market produces...."
Trading Education Tutorial
Courtesy of Nirvana Systems
Trendlines
Determining Market Reversals and Continuations
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Courtesy of Nirvana Systems
Trendlines
Determining Market Reversals and Continuations
Trendlines are perhaps the oldest tools known to chartists. Trendlines form across peaks and valleys called pivot points - relative highs and lows in a chart. As more points form along a line, it becomes more "established". This means that, when the line is broken, it will likely follow through with a strong move in the new direction.
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NASDAQ Chart of the Day
Courtesy of Nirvana Systems
Daily Trading Signals
Courtesy of Nirvana Systems
SPNC is sitting right at critical support at 9.50, which has held easily for about a year. A big break through this support level could spark key weakness. Watch 9.50 for a solid break or bounce.
Daily Trading Signals
DDR has formed a massive head-and-shoulders pattern that is finally approaching the neck line (support) of the pattern at 61.40. A break of this level could spark a huge decline, likely back toward the low 50's.
Daily Trading Signals
Daily Market Commentary
Courtesy of Nirvana Systems
Updated Wednesday, 5/16 for Thursday's market.
Reversal from Lows...
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Courtesy of Nirvana Systems
Updated Wednesday, 5/16 for Thursday's market.
| Key DOW Levels for 5/17 | |
| UP | Above 13,600 |
| DN | Below 13,350 |
Reversal from Lows...
- Dow rallies from lows yet again, sets new highs. The index closed the day with a solid 104 point gain and another new record close and remains highly bullish.
- The NASDAQ and S&P each rallied late in the day after early weakness. The S&P continues to test highs, but the NASDAQ is clearly lagging. Watch the NASDAQ for key directional clues.
- The NASDAQ and S&P each rallied late in the day after early weakness. The S&P continues to test highs, but the NASDAQ is clearly lagging. Watch the NASDAQ for key directional clues.
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Trading Education Tutorial
Courtesy of Nirvana Systems
Consolidations
Sideways Movement Gives Indication of Future Price Direction
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Courtesy of Nirvana Systems
Consolidations
Sideways Movement Gives Indication of Future Price Direction
A consolidation is a place where buyers and sellers are very closely matched in numbers. As the battle ensues, others notice that the market is consolidating, and begin considering to get on board. As soon as a break from the consolidation occurs, the latent buyers or sellers usually begin taking positions.
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Trading Ideas & Picks
Trading Picks - Read More
May 14, 2007 - All trends are still intact for the uptrend. The warning signs coming for the short factors on the Daily chart with prices below the 5 day EMA and Stocahstics nearly entering into a downtrend. These two factors can often precede a change in the Hourly trend. Remain cautious with the market in overbought territory...
Trading Ideas & Picks
Trading Picks - Read More
The Dow's run into uncharted territory continued as the index has notched an impressive 25 of 31 sessions in the positive. The results from various economic realeases will continue to be the important catalyst in the weeks ahead as any further weakness could trigger a selloff toward the support of the 50/100-day moving averages...
Technical Indicators
Average True Range
Read More...Average True Range or ATR is a measurement of volatility. It measures the average of true price ranges over time. The True Range is the greatest distance between today's high to today's low, yesterday's close to today's high, or yesterday's close to today's low. The Average True Range is a moving average of the True Ranges.
High ATR values often occur at market bottoms following a "panic" sell-off. Low Average True Range values are often found during extended sideways movement, like as those found at market tops or after consolidation periods. True Range is used in Welles Wilder's Directional Movement indicator as well as Donald Mart's Master Trading Formula and is a common volatility ratio. The ATR can be used in a channel breakout method of trading by adding or subtracting from the previous bar's close or the current bar's open.
High ATR values often occur at market bottoms following a "panic" sell-off. Low Average True Range values are often found during extended sideways movement, like as those found at market tops or after consolidation periods. True Range is used in Welles Wilder's Directional Movement indicator as well as Donald Mart's Master Trading Formula and is a common volatility ratio. The ATR can be used in a channel breakout method of trading by adding or subtracting from the previous bar's close or the current bar's open.
NASDAQ Chart of the Day
Courtesy of Nirvana Systems
Daily Trading Signals
Courtesy of Nirvana Systems
CHAP looks to be turning down off a clear double top resistance level at 75.50, which could be very bearish after this extensive rally. Look for a retracement to occur off these levels, likely toward 64.50.
Daily Trading Signals
NYSE Chart of the Day
Courtesy of Nirvana Systems
Daily Trading Signals
Courtesy of Nirvana Systems
AEE has topped out at key resistance yet again in the 55.00 zone, as this level has held firmly since October. Watch for another possible sell-off from this zone if resistance cannot be crossed and held.
Daily Trading Signals
Daily Market Commentary
Courtesy of Nirvana Systems
Updated Tuesday, 5/15 for Wednesday's market.
Pop and Reverse...
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Courtesy of Nirvana Systems
Updated Tuesday, 5/15 for Wednesday's market.
| Key DOW Levels for 5/16 | |
| UP | Above 13,500 |
| DN | Below 13,200 |
Pop and Reverse...
- Dow rallies to new all-time highs, but sells off to the Close. The index reversed steadily to the Close, but managed to book a 37 point gain.
- The NASDAQ and S&P each held firmly beneath key resistance and dropped steadily to the Close. The NASDAQ, in particular, looks poised for a heavy downside move given the large saucer top that continues to build out.
Summary
The Dow ended the day with a late-day decline that nearly wiped out all the day's gains, but still remains quite bullish within the steady uptrend. The index could be testing the lower trend line soon at around 13,300, but more strength is likely until this line can be broken and held.
- The NASDAQ and S&P each held firmly beneath key resistance and dropped steadily to the Close. The NASDAQ, in particular, looks poised for a heavy downside move given the large saucer top that continues to build out.
Summary
The Dow ended the day with a late-day decline that nearly wiped out all the day's gains, but still remains quite bullish within the steady uptrend. The index could be testing the lower trend line soon at around 13,300, but more strength is likely until this line can be broken and held.
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Trading Education Tutorial
Courtesy of Nirvana Systems
Triangles
Tightening Price Action Leads to a Breakout
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Courtesy of Nirvana Systems
Triangles
Tightening Price Action Leads to a Breakout
There are various forms of consolidation and they occur anytime there is an equilibrium of buyers and sellers. One of the most predictive consolidation formations is the triangle.
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Trading Education Tutorial
Courtesy of Nirvana Systems
Saucer Patterns
Rare Pattern Is One of the Most Predictive
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Courtesy of Nirvana Systems
Saucer Patterns
Rare Pattern Is One of the Most Predictive
One of the most predicitive chart patterns you will come across is the saucer pattern. Saucers are also referred to as "bowls" or even "rounded tops or bottoms", and one look at this pattern tells where these names are derived from. However, there is a problem with saucer patterns - they're hard to find.
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