Tuesday, May 01, 2007
Technical Indicators
Rate of Change
Rate of Change
The Rate of Change is an oscillator that displays the difference
between the current price and the price x-time periods ago. As prices increase,
the ROC rises and as prices fall, the ROC falls. The greater the change in
prices, the greater the change in the ROC.
The 10-day ROC is an excellent short - to intermediate term overbought/oversold
indicator. The higher the ROC, the more overbought the security; when the ROC
falls expect a rally. As with all overbought/over-sold indicators, watching for
the market to start its correction before placing a trade. Often extremely
overbought/oversold readings usually imply a continuation of the current trend
and any overbought market may remain that way for some time.
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Trading Education
Tutorial
Courtesy of
Nirvana Systems
Trendline Breaks
When is a Trend Truly Broken?
The importance of trendlines cannot be overstated when it comes to
technical analysis. We are told to trade with the primary trend, exit when the
trend reverses, enter on trend reversals, and so on. Trends are easy enough to
identify, but when is a trend actually broken?
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More...
NASDAQ Chart of the Day
Courtesy
of Nirvana Systems
SIGM
has broken the neck line of a bearish head-and-shoulders pattern at 25.00,
which indicates big weakness ahead. Watch for a drop back toward the 19.50
zone, and possibly lower.
Daily Trading Signals
NYSE Chart of the Day
Courtesy
of Nirvana Systems
MFE
looks like it may be forming a bearish volume climax after maxing out above
34.00. If the stock cannot rise back above 33.50, we could see a steady decline
back toward the gap open.
Daily Trading Signals
