Monday, August 06, 2007
Trading Education
Tutorial
Pattern Cycles: Reversals
No chart pattern better illustrates this slow
evolution from bull market to bear decline than the Descending Triangle. Within
this simple structure, the trader examines how life drains slowly from a
dynamic uptrend. Variations of this destructive formation precede more
breakdowns than any other reversal. And they can be found doing their dirty
deeds in all time frames and all markets.
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 reflect the impact of crowd psychology on changes
in price and momentum...
Read
More...
Trading Ideas &
Picks
Weekly Swing Ideas Report for JAugust
6th - August 10th
Stock Picks - Long and
Short Potential Swing Candidates ... SwingTracker Scans: Trading Window (BOBJ
BUSINESS OBJECTS, KCI KINETIC CONCEPTS INC, NFS NATIONWIDE FINL SVCS INC, BMS
BEMIS INC, FOXH FOXHOLLOW TECHNOLOGIES INC), Force Swings, Triangle, Revival,
Reversals, Breakouts (ALKS ALKERMES INC, MZZ PROSHARES TR, IEF ISHARES TR), and
more...
Trading
Ideas - Read More
Trading Ideas &
Picks
The Weekly Report for August 6th -
August 10th - Subprime Problems Continue
The upward diverging moving averages are still suggesting
that the longer-term momentum may still be on the side of the bulls. The
Rusell's relatively low RSI value is
currently suggesting that the index may start to experience some buying
pressure as the bulls look to enter at a spot that gives them a favorable risk/reward ratio...
Trading
Picks - Read More
Daily Stock Picks
Bottoming
-
August 3 for August 6:
AGII CBHI CNIC DDDC DUSA GSIT IFUL KONG LDIS PABK PEET PGTI RTSX RUTH
(Stocks
making a 52 WK low but closing higher than they opened)
Oversold Stocks -
August 3 for August 6:
ACOR CLUB UTEK
(Stocks
closing higher than they opened, crossing up through their 25 Stochastic level,
and on 150% + greater than average 6 month volume)
Volume Pop -
August 3 for August 6:
ALVR CLUB EXPE HTCH OIIM
(Volume Pop
With High ADX & RSI)
More... Stock Picks Page #1
Technical Indicators
Moving
Average, Triple Exponential
The Triple Exponential Moving Average (TRIX) is an oscillator used to identify
oversold and overbought markets as well as a momentum indicator. For use as an
oscillator look for a positive value to indicate an overbought market and a
negative value indicate an oversold market. When TRIX is used as a momentum
indicator, a positive value suggests increasing momentum just as a negative
value suggests momentum is decreasing. Some believe that the TRIX crossing
above the zero line is a buy signal and a closing below the zero line is a sell
signal. Divergence between price and TRIX can also indicate significant turning
points in the market.
Read More...
Profits Run presents:
"Choosing a Trading
System That Actually Works"
E-book with
specific steps that you can take to quickly and efficiently analyze any trading
system on the market. Armed with this knowledge, you'll be in a better position
to determine if a trading system actually has the potential to work for you.
For 48 hours only, you can download the full 'Choosing a Trading System That
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- Choosing a Trading System That Actually Works
Trading Education
Tutorial
Courtesy of
Nirvana Systems
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.
Read
More...
NASDAQ Chart of the
Day
Courtesy
of Nirvana Systems
OIIM may have topped out with a
volume climax and could fill the potential exhaustion gap soon. These patterns
indicate a likely decline from these levels, especially if 13.20 is crossed.
Daily Trading Signals
NYSE Chart of the Day
Courtesy
of Nirvana Systems
SYX has formed a potentially
bearish pennant consolidation that could offer a big move to the downside. A
break through 18.75 could spark heavy selling pressure.
Daily Trading Signals
Daily Market Commentary
Courtesy of
Nirvana Systems
Updated Friday, 8/3 for Monday's market.
|
Key DOW Levels for 8/6
|
|
UP
|
Above 13,525
|
|
DN
|
Below 13,150
|
Heavy Selling...
- Dow sells off heavily from 13,500, drops over 300
points from highs. The index closed the session with a 200 point freefall and
is now holding above prior support at 13,150, which is a key level to watch Monday.
- The NASDAQ and S&P each sold off heavily into the afternoon with the
S&P actually hitting new lows within the bearish downtrend. Look for more
overall selling ahead, especially if the upper trend lines remain intact.
Summary
The Dow ended the day with a heavy decline and continues to honor the 13,500
resistance level, which is quite bearish. Look for continued overall weakness
beneath this zone, especially if 13,150 is crossed.
Read More...
