Wednesday, July 11, 2007
Technical Indicators
Momentum Indicator
TBy measuring the amount that a security's price
has changed over a given time span, the Momentum indicator provides an
indication of a market's velocity and to some degree, a measure of the extent
to which a trend still holds true. It can also be helpful in spotting likely
reversal points.
While the mathematics are straightforward (subtract the closing price n days
ago from the closing price today), do not underrate its value because of its
simplicity.
Use the Momentum indicator as a trend-following oscillator similar to the MACD
and buy when the indicator bottoms and turns up. Sell when the indicator peaks
and turns down. When the Momentum indicator reaches extremely high or low
values (relative to historical values) assume a continuation of the current trend...
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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.
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More...
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.
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More...
NASDAQ Chart of the
Day
Courtesy
of Nirvana Systems
After strong upward gap at the end of April, MSFT
has met resistance forming a lower high at the end of May. A break of the
critical 29 level should send this stock back to around 27 or lower.
Daily Trading Signals
NYSE Chart of the Day
Courtesy
of Nirvana Systems
MMM is nearing the end of a well
formed ascending triangle. Any penetration of the 89 level will likely trigger
a run to new highs. A downside break of support around 84 could easily set off
a retracement to the 77 range.
Daily Trading Signals
Daily Market Commentary
Courtesy of
Nirvana Systems
Updated Tuesday, 7/10 for Wednesday's market.
|
Key DOW Levels for 7/11
|
|
UP
|
Above 13,700
|
|
DN
|
Below 13,250
|
Reversal from Resistance...
- Dow sells off from
resistance, drops 148 points.
- From prior commentary,
"...The Dow will likely test this zone very soon, which will give us a
very good indication that the Dow will either remain strong or get a bearish
bounce...a failure at this level will likely cause another drop back toward the
bottom of the range at around 13,300..."
The Dow opened the day
with a big decline from the major 13,700 resistance level today and proceeded
to drop the rest of the session, as seen in the 15 and 60 Minute Charts. The
Dow sold off heavily into the afternoon and eventually closed with a big 148
point loss, but more weakness is likely.
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