Tuesday, January 08, 2008

Quantum Swing Trader - Limited Edition

If you had a stock trading method that let you discover when a stock was about to make a massive move UP or DOWN, and then showed you, step-by-step, how to take advantage of that move to potentially pull profits out of the markets... would you be interested?

The "sweet spot" of Quantum Swing Trader is that it shows you how to take just a few common indicators, but use them in an uncommon way to "pinpoint" the spot in any stock where it has a high probability of making a massive move UP or DOWN, but not stay the same.

* Quantum Swing Trader - Limited Edition*


Trading Signals of the Day

Bullish Reversal Triggers

Reversal bars are an objective technique used to time the entry of a trade. Read More... http://daily-stocks.netfirms.com/daily-trading-triggers.htm

Technical Indicators

True Strength Index

The True Strength Index (TSI) is a momentum-based indicator, developed by William Blau. Designed to determine both trend and overbought/oversold conditions, the TSI is applicable to intraday time frames as well as long term trading.

The True Strength Index is a variation of the Relative Strength indicator. It uses a double smoothed exponential moving average of price momentum to minimize choppy price changes and highlight spot trend changes with little or no time lag. An increasing True Strength value indicates increasing momentum in the direction of the price movement.


Trading Education Tutorial

Hell's Triangle

The classic Descending Triangle illustrates the painful rollover from bull to bear market better than any other pattern. But why does it work with such deadly accuracy? Most traders don't understand how or why patterns predict outcomes. Some even believe these important tools rely on mysticism or convenient curve fitting. The simple truth is more powerful: congestion patterns in technical analysis reflect the impact of crowd psychology on changes in price and momentum.

Shock and fear quickly follow the first reversal marking a triangle's major top. But many shareholders remain true believers and expect their profits will return when selling dissipates. They continue to hold positions as hope slowly replaces better judgement. The selloff then carries further than anticipated and their discomfort increases. Just as pain begins to escalate, the correction suddenly ends and the stock firmly bounces.

For many longs, this late buying reinforces a dangerous bias that they were right all along. Renewed confidence even prompts some to add to positions. But smarter players have a change of heart and view this new rally as a chance to get out. As they quietly exit, the strong bounce loses momentum and the stock once again turns and fails. Those still riding the issue now watch the low of the first reversal with much apprehension.


Trading Education Tutorial
Courtesy of Nirvana Systems

Double Tops and Bottoms

Waiting for the Setup to Complete Results in Profits

TThere are various chart patterns that help us find good reversal candidates. Of the major reversal patterns, the double top or bottom is not only one of the most recognizable, but also one of the most predictive.


NASDAQ Chart of the Day
Courtesy of Nirvana Systems

NTCT has broken a tightly-wound triangle to the downside at 12.25 after double-topping at the Fibonacci Retracement level of 62%. Look for another round of selling below, especially if 11.40 is crossed.

Daily Trading Signals

NYSE Chart of the Day
Courtesy of Nirvana Systems

AA has finally gotten a big downside break through the bottom of the large triangle range that has built out over the last six months. This break could lead to a steady decline below, especially if 32.00 is crossed.

Daily Trading Signals

Daily Market Commentary
Courtesy of Nirvana Systems

Updated Monday, 1/7 for Tuesday's market.

Key DOW Levels for 1/8




Below 12,700


- Dow trades back and forth at lows, builds out consolidation. The Index closed the day just above 12,800 and has now built out a clear consolidation range at lows after gaining 27 points. Watch this range tomorrow.

- The NASDAQ and S&P each held near lows today, building out clear consolidations throughout the day. Look for more range movement until these ranges are violated.


The Dow closed the day with a nice bounce from lows to end the day with a gain. However, the index is now consolidating at lows within another bearish consolidation. Watch 12,730 and 12,900 for signs of direction tomorrow.


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