Wednesday, September 13, 2006
Technical Indicators
Moving Average,
Displaced
PThe Displaced Moving Average takes the current moving average and
shifts it forward (or backward) in time. Use to de-trend the data, for cycle
estimation, for phasing or as a simple moving average trading system.
While the first number in the study specifies the period of a simple moving
average (e.g., 28 days), the second parameter specifies the shift period (e.g.,
5 days); enter a negative number to shift the moving average back (e.g., -14
days). When the moving average is shifted back, the remaining portion of the
study is computed with the moving average based on the available data for each
day (e.g., 13 days, 12 days, etc.)
The mathematics of a moving average will always force it to follow or lag the
actual price data. By centering the moving average, you will have a more
accurate picture of the moving average relative to the current price on the
chart. A Displaced Moving Average study could be quite useful in locating and
estimating cycles...
Read More...
NASDAQ Chart of the Day
ZBRA
is getting an upside break from a highly bullish inverted head-and-shoulders
pattern at 34.50. This break could lead to much more strength ahead.
Daily Trading Signals
NYSE Chart of the Day
RYL
is winding up with a beautiful triangle pattern and is currently testing the
upper boundary of this pattern at 44.50. An upside break through the top of
this pattern could spark a huge advance from this stock. Also watch 39.00 for a
possible downside break.
Daily Trading Signals
Daily Market Commentary
Updated Tuesday, 9/12 for Wednesday's market
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Key DOW Levels for 9/13
|
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UP
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Above 11,525
|
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DN
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Current Trend
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Huge Breakout & Rally
- Dow breaks triangle to upside, rallies for triple-digit gain.
Continued overall strength out of this pattern is likely, but we could see an
interim continuation pattern form beforehand.
- The NASDAQ and S&Peach got huge breakouts from their respective ranges,
which led to big strength to the Close. Look for signs of a continuation
tomorrow.
Summary
The Dow ended the day sharply higher after breaking through the top of a key
triangle range today. The index rallied for a triple-digit gain and is now at
four month highs. Look for a continuation pattern to form to indicate that
continued overall strength is likely.
Read More...
Trading Education
Tutorial
Measured and Exhaustion
Gaps
Identifiable Patterns After Confirmation Move
We have previously mentioned the three types of gaps that are of
relevance to investors - the breakaway gap, the measured (or continuation) gap,
and the exhaustion gap. We previously discussed the breakaway gap, but it is
important to discuss the measured gap and exhaustion gap at the same time. Why?
Because it is difficult to tell one from the other until after the fact.
Read More...
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
