Thursday, August 09, 2007
Technical Indicators
Relative Momentum
Index (RMI)
Introduced by Roger Altman in the February 1993 issue
of Technical Analysis of Stocks & Commodities magazine, the Relative
Momentum Index is a variation of the Relative Strength Index (RSI). Instead of
counting up and down days from close to close like the RSI, the Relative
Momentum Index counts up and down days from the close relative to a close
n-days ago (where n is not limited to 1 as required by the RSI).
As with all overbought/oversold indicators, the RMI exhibits similiar strengths
and weaknesses. In strong trending markets the RMI will remain at overbought or
oversold levels for an extended period. In non-trending markets the RMI tends
to predictably oscillate between an overbought level of 70 to 90 and an
oversold level of 10 to 30. When the RSI diverges from the price, the price
will eventually correct to the direction of the index.
Read More...
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
Trading Education
Tutorial
Courtesy of
Nirvana Systems
Double Tops
and Bottoms
Waiting for the Setup to Complete Results in Profits
There 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.
Read More...
NASDAQ Chart of the
Day
Courtesy
of Nirvana Systems
DLLR is getting a big bounce at key
support at 23.00, which has held up since the Spring. Look for more strength
above this level, unless a break occurs.
Daily Trading Signals
NYSE Chart of the Day
Courtesy
of Nirvana Systems
NBR has sold off steadily from the
36.00 range, but has found support once again at 27.45, which has held up
nicely since last Fall. If the stock can continue to hold above this zone, we
could see another rise back toward prior highs at around 36.00.
Daily Trading Signals
Daily Market Commentary
Courtesy of
Nirvana Systems
Updated Wednesday, 8/8 for Thursday's market.
|
Key DOW Levels for 8/9
|
|
UP
|
Above 13,700
|
|
DN
|
Below 13,475
|
Late-Day Volatility...
- Dow trends higher throughout session, but swings
wildly into the Close.
From prior commentary, "...We could see the index push slowly higher back
toward 13,700, but we should continue to see weakness beneath anything below
13,800..."
The Dow trended slowly and steadily higher toward the 13,700 zone today, coming
within nine points of hitting this level, as seen in the 15 Minute Chart. The
index immediately sold off from this zone, dropping about 200 points before
rallying into the Close with an eventual 154 point gain.
Read More...
