Wednesday, October 11, 2006
Technical Indicators
Fisher Transform
The Fisher Transform indicator attempts to be a major turning
point indicator and is based on John Ehlers' November 2002 Stocks and
Commodities Magazine article, "Using The Fisher Transform."
With distinct turning points and a rapid response time, the Fisher Transform
uses the assumption that while prices do not have a normal or Gaussian
probability density function (that familiar bell-shaped curve), you can create
a nearly Gaussian probability density function by normalizing price (or an
indicator such as RSI) and applying the Fisher Transform. Use the resulting
peak swings to clearly identify price reversals...
Read More...
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.
Read More...
NASDAQ Chart of the Day
EEFT
is winding up within the boundaries of a very tight triangle consolidation. A
breakout from this pattern could spark big movement. Watch 25.50 up, and 24.00
down.
Daily Trading Signals
NYSE Chart of the Day
SM
has formed an inverted head-and-shoulders pattern off key support at 34.00. An
upside break through 37.00 could spark a solid upside move back toward recent
highs at around 44.00.
Daily Trading Signals
Daily Market Commentary
Updated Tuesday, 10/10 for Wednesday's market
|
Key DOW Levels for 10/11
|
|
UP
|
Above 11,900
|
|
DN
|
Below 11,800
|
In the Range...
- Dow trades sideways throughout session, continues development of
consolidation. The index closed another quiet session with a modest 9 point
gain, but continues to gear up for a potentially huge breakout move.
- The NASDAQ and S&P each traded slowly sideways today, but look to be
developing 'topping out' patterns. Look for a breakout from this range for the
next big move.
Summary
The Dow ended the day slightly higher, but continues to hold within the
boundaries of the current five-day consolidation. Look for an eventual breakout
from this consolidation for the next key move.
Read More...
