Monday, July 23, 2007
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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Technical Indicators
Ease of Movement
The Ease of Movement Indicator was designed to illustrate the relationship
between volume and price change. It shows how much volume is required to move
prices.
High Ease of Movement values occur when prices are moving upward with light
volume. Low values occur when prices are moving downward on light volume. If
prices are not moving or if heavy volume is required to move prices then the
indicator will read near zero.
A buy signal is produced when it crosses above zero (an indication that prices
are more easily moving upward ). A sell signal is produced when the indicator
crosses below zero (prices are moving downward more easily).
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NASDAQ Chart of the
Day
Courtesy
of Nirvana Systems
CLWR took a big move higher
yesterday, but has pulled back from highs on high volume today, leading to the
possibility of a bearish volume climax pattern. Look for weakness through 28.50
for signs that the gap could be filled.
Daily Trading Signals
NYSE Chart of the Day
Courtesy
of Nirvana Systems
SON broke two key lower trend lines
with one fell swoop today, as the stock took a large gap down through the 40.00
level. Look for more weakness out of this stock, especially if it remains
beneath 42.00.
Daily Trading Signals
Daily Market Commentary
Courtesy of
Nirvana Systems
Updated Friday, 7/20 for Monday's market.
|
Key DOW Levels for 7/23
|
|
UP
|
Above 13,915
|
|
DN
|
Below 13,775
|
Back to 13,800...
- Dow sells off heavily back to 13,800, closes
session lower by 149 points. The index recovered nicely after bottoming out at
13,800 and rallied 100 points before closing the day with a big 149 point loss.
- The NASDAQ and S&P each sold off heavily throughout the first part of the
session and are now holding within the boundaries of larger ranges. Watch
support for early direction Monday.
Summary
The Dow closed the day well off from the 14,000 level and could be on the verge
of a larger decline should the 13,800 level give way. Watch 13,800 and 13,900
for signs of direction early next week.
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