Friday, September 15, 2006
NASDAQ Chart of the Day
KNDL
has gotten a big breakout move out of a clear triangle via a breakaway gap on
increased volume, which is highly bullish. Watch for continued strength from
this pattern.
Daily Trading Signals
NYSE Chart of the Day
AXE
is holding within the boundaries of a clear consolidation that has formed at
the highs from 54.00 to 58.00. Watch for a breakout from this range for the
next key move.
Daily Trading Signals
Technical Indicators
Zig Zag
The Zig Zag indicator shows past performance trends and only the
most significant changes. It does this by filtering out any changes less than a
specified amount.
The Zig Zag indicator is used primarily to help you see changes by highlighting
the most significant reversals. Understand that the last segment in a Zig Zag
chart can change based on changes in the underlying plot, price being only one
example. That is, a change in a security's price can change a previous value of
the indicator. Since the Zig Zag indicator adjusts its values based on subsequent
changes, it has perfect hindsight into what prices have done. Do not try to
create a trading system based on the Zig Zag indicator, as it to be used to
illustrate historical patterns.
The Zig Zag indicator is calculated by placing imaginary points on a chart when
prices reverse by at least the specified amount. Straight lines are then drawn
to connect these imaginary points. Any changes in prices that are less than the
specified amount are ignored.
Read More...
Trading Education
Tutorial
Saucer Patterns
Rare Pattern Is One of the Most Predictive
One of the most predicitive chart patterns you will come across is
the saucer pattern. Saucers are also referred to as "bowls" or even
"rounded tops or bottoms", and one look at this pattern tells where
these names are derived from. However, there is a problem with saucer patterns
- they're hard to find.
Read
More...
Daily Market Commentary
Updated Thursday, 9/14 for Friday's market
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Key DOW Levels for 9/15
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UP
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Above 11,550
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DN
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Below 11,500
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Winding Up...
- Dow trades quietly sideways, forms clear triangle consolidation
at highs. The Dow is winding up within the boundaries of a clear triangle
consolidation that we will want to watch for the next big breakout move.
- The NASDAQ and S&P each traded basically flat today, as each is
consolidating at the current highs. Look for continued range development, but
for a breakout to be near.
Summary
The Dow traded sideways throughout the day and is now winding up within a tight
triangle pattern, which could pack some punch tomorrow. A breakout from this
consolidation could push the Dow to our 11,650 target, or it could lead to a
steep sell-off back to the 11,400 zone. Watch it closel.
Read More...
