Friday, November 03, 2006
Technical Indicators
Aroon Oscillator
Developed by Tushar Chande, the Aroon Oscillator is based upon his
Aroon Indicator. Much like the Aroon Indicator, the Aroon Oscillator measures
the strength of a trend.
The Aroon Oscillator is constructed by subtracting Aroon Down from Aroon Up.
Since Aroon Up and Aroon Down oscillate between 0 and +100, the Aroon
Oscillator oscillates between -100 and +100 with zero as the center crossover
line. The Aroon Oscillator signals an uptrend if it is moving towards its upper
limit. It signals a downtrend when it is moving towards the lower limit. The
closer the Aroon Oscillator value is to either extreme the stronger the trend.
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Trading Education
Tutorial
Triangles
Tightening
Price Action Leads to a Breakout
There are
various forms of consolidation and they occur anytime there is an equilibrium
of buyers and sellers. One of the most predictive consolidation formations is
the triangle.
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NASDAQ Chart of the Day
SMTC
is winding up within the boundaries of a large triangle range that could spark
a huge breakout move. Watch 13.75 up, and 12.25 down for a breakout.
Daily Trading Signals
NYSE Chart of the Day
HZO
has broken a clear trend line to the downside via a sizeable breakaway gap and
increased volume, which is quite bearish. Look for more weakness from this
stock.
Daily Trading Signals
Daily Market Commentary
Updated Thursday, 11/2 for Friday's market.
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Key DOW Levels for 11/3
|
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UP
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Above 12,050
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DN
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Below 11,950
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Holding...
- Dow tests 12,000, trades quietly sideways to the Close. The
index struggled at 12,000 throughout the day and basically sat idle before
closing the session with a 12 point loss.
- The NASDAQ and S&P each held at their respective lows today, as very
tight consolidations formed. Look for a breakout from these patterns for key
direction.
Summary
The Dow ended the day quietly, as the index basically traded sideways the
entire session. The index continues to spar with the 12,000 level, which we
will continue to watch the next key move.
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