Monday, August 20, 2007
Technical Indicators
Accumulation/Distribution
Line
The Accumulation/Distribution Line was developed by
Marc Chaikin to assess the cumulative flow of money into and out of a security.
He decided to focus on the price action for a given period (day, week, month)
and derived a formula to calculate a value based on the location of the close,
relative to the range for the period. This is the "Close Location
Value" or CLV. The CLV ranges from plus one to minus one with the center
point at zero.
The signals for the Accumulation/Distribution Line
are fairly straightforward and involve divergence or confirmation. A bullish
signal is given when the Accumulation/Distribution Line forms a positive
divergence. Be wary of weak positive divergences that fail to make higher
reaction highs. A two-week positive divergence should be suspect. However, a
multi-month positive divergence deserves serious attention...
Read More...
Trading Education
Tutorial
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.
Read
More...
NASDAQ Chart of the
Day
Courtesy
of Nirvana Systems
ECIL has gotten a bullish reaction
to the 50% Fibonacci Retracement level and could be headed to new highs.
Yesterday's bullish tail followed by today's strength indicates we could see
higher above the 10.00 range. Watch 9.40 for strength.
Daily Trading Signals
NYSE Chart of the Day
Courtesy
of Nirvana Systems
ICE has reversed sharply from prior
support at 120.00 and has formed two bullish tails in a row, which could offer
another solid advance back toward prior highs. Look for strength above 136.00
for a shot at 160.00.
Daily Trading Signals
Daily Market Commentary
Courtesy of
Nirvana Systems
Updated Friday, 8/17 for Monday's market.
|
Key DOW Levels for 8/20
|
|
UP
|
Above 13,200
|
|
DN
|
None
|
Pop & Hold...
- Dow rallies toward 13,200 early, but trades
sideways to the Close. As the highs of the day, the Dow had gained 290 points,
which occurred in the first 15 minutes of the day. However, the index sold off shortly
thereafter, but was climbed steadily into the Close to end the day with a big
233 point gain.
- The NASDAQ and S&P each rallied sharply at the Open, but halted the
advance at their respective resistance levels. Watch these levels closely for
signs of more strength ahead.
Summary
The Dow closed the day fairly quietly after the opening volatility. The index
may have formed a bullish inverted H&S, which we will watch closely for
signs of more strength.
Read More...
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