Monday, March 26, 2007
Trading Education
Tutorial
Courtesy of
Nirvana Systems
Reward:Risk Ratio
Assessing a
Trades Potential
When looking at a stock to buy, we look to various tools and
techniques to help us assess the probability of its upward movement. However,
will it go up is not the only question to ask - we also need to analyze the
chart to see how far it is likely to go up and also how much of a loss we are
willing to take to allow it to reach it's profit potential. The potential
profit of a trade divided by the potential loss of trade is known as the
Reward:Risk Ratio.
Read More...
NASDAQ Chart of the Day
Courtesy
of Nirvana Systems
SIMG
got a big bounce at major support at 8.00 today, which is a level that has held
up firmly since last summer. Look for more strength from this zone.
Daily Trading Signals
NYSE Chart of the Day
Courtesy
of Nirvana Systems
ADM
is winding up within a large consolidation range that has continued to build
out over the last five months. Watch 36.75 and 33.50 for a potential breakout.
Daily Trading Signals
Daily Market Commentary
Courtesy of
Nirvana Systems
Updated Friday, 3/23 for Monday's market.
|
Key DOW Levels for 3/26
|
|
UP
|
Above 12,525
|
|
DN
|
Below 12,400
|
Holding Gains...
- Dow maintains stance within tight consolidation, holds at
overall highs. The index closed with a 20 point gain and continues to hold near
the overall highs of the latest rally that began at 11,950.
- The NASDAQ and S&P each traded quietly sideways throughout the day and
continue to build out their respective ranges. Look for more consolidating
behavior ahead of the next move.
Summary
The Dow continues to consolidate at highs above major resistance, which is
bullish. Look for more range development ahead of the next key breakout move.
Read More...
