Wednesday, June 20, 2007
Technical Indicators
Intraday Momentum
Index
Developed by Tushar Chande, the Intraday Momentum Index is a
combination of the Relative Strength Index and Candlestick Analysis.
The IMI is calculated like the RSI but uses the relationship between the
intraday opening and closing prices to determine whether the day is up or down.
When the close is above the open, it is an up day. If the close is below the
open it is a down day. White candlesticks signify an up day, black candlesticks
used for down days.
As with the RSI, overbought conditions (and lower prices ahead) are indicated
when the index rises above 70. Values below 30 indicate a potential oversold
situation and higher price ahead. Remember, as with all overbought/oversold
indicators, you should first quantify the trendiness of the market before
acting on any signals...
Read More...
Trading Ideas &
Picks
Runaway Moves (Gann)
In our last article, we focused on W.D. Gann's
innovative brand of price and time analysis, especially as pertaining to the
time periods of measured corrections. So-called "runaway moves" comprise a
unique and highly profitable subset among time periods, affording the alert
speculator the greatest opportunity to profit in the shortest time. During these
dramatic moves, options prices traditionally experience their greatest
increases in value...
Trading
Picks - Read More
Trading Education
Tutorial
Courtesy of
Nirvana Systems
Trendlines
Determining Market Reversals and Continuations
Trendlines are perhaps the oldest tools known to chartists.
Trendlines form across peaks and valleys called pivot points - relative highs
and lows in a chart. As more points form along a line, it becomes more
"established". This means that, when the line is broken, it will
likely follow through with a strong move in the new direction.
Read More...
NASDAQ Chart of the Day
Courtesy
of Nirvana Systems
MCHP
took a large breakaway gap to the downside after topping out at key resistance
at 42.40. The gap occurred through a clear lower trend line on increased
volume, which could make for much more selling ahead.
Daily Trading Signals
NYSE Chart of the Day
Courtesy
of Nirvana Systems
FDS
has taken a solid breakaway gap to the upside through the top of a clear
continuation pattern at 64.50, which could offer much more strength ahead. Look
for continued strengh ahead, especially if 65.00 remains untouched.
Daily Trading Signals
Daily Market Commentary
Courtesy of
Nirvana Systems
Updated Tuesday, 6/19 for Wednesday's market.
|
Key DOW Levels for 6/20
|
|
UP
|
Above 13,725
|
|
DN
|
Below 13,550
|
Still Consolidating...
- Dow trades quietly again,
remains within tight consolidation. The index managed to gain a modest 22 point
gain, but remains at overall highs beneath major resistance.
Read More...
