Friday,
October 27, 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
Trading Education
Tutorial
The Big W
Double Bottoms provide visual reference points
that map the entire reversal process. Once located, these signposts identify
most key price pivots and flash early warning signals when violated. The most
common of these, The Big W, begins at the last major high printed by a
downtrending stock, just prior to the first bottom. The first bounce after this
low creates the center of the W as it retraces between 38% and 62% of that last
downward move.
This rally
fades and price descends back toward a test of the last bottom low. At this
moment the trader listens closely for the first bell to ring. A wide range
reversal bar (doji or hammer) may appear close to the low price of the last
bottom. Or volume spikes sharply but price does not fail. Better yet, a Turtle
Reversal develops where price violates the last low by a few ticks and then
prints a sharp move back above support. Should any or all of these events
occur, we mark the potential second leg on our Big W. Read
More...
NASDAQ Chart of the Day
PMTI
got a huge breakaway gap out of a large triangle range, which is highly
bullish. Increased volume also helps the bullish case. Look for more strength
out of this pattern.
Daily Trading Signals
NYSE Chart of the Day
HXL has gotten a huge breakout from
the large consolidation range at 15.50 via a nice breakaway gap, which is very
bullish. Look for more strength from this stock.
Daily Trading Signals
Trading Education
Tutorial
Support and Resistance Levels
History
Tells Us When Securites are Overbought or Oversold
Support indicates a level on the chart where we can expect an increase in the
demand for a security (buyers take over). How do we know this? By identifying
this reaction to this price level in the chart's history.
Read
More...
Daily Market Commentary
Updated Thursday, 10/26 for Friday's market.
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Key DOW Levels for 10/27
|
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UP
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Above 12,200
|
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DN
|
Below 12,075
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New Highs...
- Dow reverses after early decline, rallies to new highs. The
index held firmly at 12,100 before rallying solidly to new all-time highs for
another solid 29 point gain. Further strength should be seen if 12,100
continues to hold.
- The NASDAQ continues lead the broader market higher and the S&P continues
to follow suit. Look for continued strength above near-term support.
Summary
The Dow ended the day with a modest gain, but held its ground despite a huge
sell-off to begin the day. The index will continue to push steadily higher
within the current uptrend, unless 12,100 is solidly violated.
Read More...
