Wednesday, November 29, 2006
Technical Indicators
Vertical Horizontal
Filter
Created by Adam White, the Vertical Horizon Filter illustrates the
trendiness of a particular equity. It helps display whether the stock is
following a trend or a trading range.
If the Vertical Horizon Filter is rising, this may indicate a trend is forming.
The higher the indicator, the better other trend-following indicators will
work. Falling values may indicate that prices may be falling out of the trend
and entering a congestion phase (the stock trades within a certain price range
without much net up or down movement).
Read More...
Trading Education
Tutorial
Volume Climax
Volume Helps Identify Reversals
Various price patterns can alert us to potential reversal candidates. Trendline
Breaks, Support and Resistance Levels, Fibonacci Retracement Levels and other
price information are valuable in determining a change in direction for a
security. However, one of the most overlooked chart patterns that help us
determine reversals is not reflected in the price itself. Volume climaxes are
easily identifiable and valuable in assessing a change in market sentiment.
Read More...
NASDAQ Chart of the Day
AKAM
is winding up within the boundaries of a large consolidation range, which spans
from 46.00 to 52.00. Watch for a solid breakout from this range for key
movement.
Daily Trading Signals
NYSE Chart of the Day
GMR
is testing the lower trend line of a large triangle range that has a back end
of 11 points. A breakout from this triangle could spark a move of 11 points
should a clean and solid breakout opportunity presents itself. Watch 35.00 for
early weakness and 34.00 for confirmed selling.
Daily Trading Signals
Daily Market Commentary
Updated Tuesday, 11/28 for Wednesday's market.
|
Key DOW Levels for 11/29
|
|
UP
|
Above 12,300
|
|
DN
|
Below 12,050
|
Holding...
- Dow hits new lows, but pulls back to hold near overall lows. The
index pulled back from the day's lows and proceeded to consolidate the
remainder of the session and recorded a mild 15 point gain in the process.
- The NASDAQ and S&P each each pulled back from lows and have begun to
build out large ranges. Look for further range development ahead of the next
key breakout.
Summary
The Dow closed the day with a modest advance today and is now holding within
the boundaries of a clear consolidation range. Look for more range activity, as
the index continues to build out the potential continuation pattern.
Read More...
