Friday, October 06, 2006
Bullish Reversal Triggers
Reversal bars are an
objective technique used to time the entry of a trade. Read More... http://daily-stocks.netfirms.com/daily-trading-triggers.htm
Technical Indicators
Stochastic Oscillator
The Stochastic Oscillator compares the closing price of a security to its price
range over a given time period. Its displayed by two lines, a main line called
%K (drawn in solid blue) and a secondary line (in dotted green) called %D. The
%D line is the moving average of the %K.
The Stochastic Oscillator contains four variables:
· %K Periods:
This is the number of time periods used in the stochastic
calculation.
· %K Slowing Periods:
This value controls the internal smoothing of %K. A value of 1 is
considered a fast stochastic while a value of 3 is considered a slow
stochastic.
· %D Periods:
This is the number of time periods used when calculating the
moving average of %K.
· %D Method:
The method (Exponential, Simple, Time Series, Triangular,
Variable, or Weighted) used to calculate %D
When trading using the Stochastic Oscillator, one method is to buy when either
%K or %D falls below 20 and then rises back above that level. Similarlily, sell
when the either line rises above 80 and then falls back below. Another pattern
to look for when timing trades is buy when the %K line rises above the %D line
or sell when the %K line falls below the %D line. Lastly, one should always be
on the lookout for diveregnces. For example, if prices are making a series of
new highs and the Stochastic Oscillator fails to surpass its previous highs,
the indicator typically will provide the clue as to where prices will soon
head...
Read More...
Trading
Tools
Shogun Swing Trading - Best Swing Trading:
Shogun Trading's approach can benefit all
stock traders, from day traders to long term swing traders. We are proud to
show some of the best Performance in Day Trading, Longer Term Swing
Trading Strategy, Systemized Swing Trading and through our Educational
Courses and Videos... " Get More Info Now!
NASDAQ Chart of the Day
NUAN
is breaking out a very clear triangle range at 8.40, which is highly bullish.
Watch for a solid continuation higher toward the 11.00 range.
Daily Trading Signals
NYSE Chart of the Day
FLE
is getting a huge upside break from a very tight consolidation at 7.40, which
could spark much more strength ahead. Watch for movement back toward the 10.00
zone.
Daily Trading Signals
Trading Education
Tutorial
Breakaway Gaps
Pressure Helps Identify Movers
Gaps occur when there is a dramatic change in market conditions.
They can occur at the beginning of a trading session (i.e. most NASDAQ stocks)
or even during the session itself. There are three types of gaps that are of
interest to us when we analyze charts: breakaway, measured (also known as
continuation) and exhaustion gaps. Today we will discuss the breakaway gap...
Read
More...
Daily Market Commentary
Updated Thursday, 10/5 for Friday's market
|
Key DOW Levels for 10/6
|
|
UP
|
Above 11,900
|
|
DN
|
Below 11,800
|
Holding...
- Dow holds throughout the session, maintains the week's big
gains. The index continues to set successive all-time closing highs, but
continues to look over-extended in the near term.
- The NASDAQ and S&P each continue to push higher within the current
uptrend, but may be over-extended in the near-term. Look for a period of
consolidation to occur at the highs before another key move is seen.
Summary
The Dow closed the day with another gain to extend the all-time closing highs
for the third straight session. The index looks to be in a holding pattern at
this point, however, as it looks to regain its momentum. Watch the 11,800 level
as the next key fulcrum for medium term direction.
Read More...
