Tuesday, September 19, 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
NYSE Chart of the Day
KBH is holding firmly beneath key
resistance at 48.00. Watch for a break or bounce off this level for key
movement.
Daily Trading Signals
NASDAQ Chart of the Day
INPC has formed a clear saucer pattern and has broken the lip of the
pattern at 7.50, which is highly bullish. Look for more strength out of this
pattern moving forward.
Daily Trading Signals
Trading Education
Tutorial
Reward:Risk Ratio
Assessing a Trades Potential
When looking at a stock to buy, we look to various tools and
techniques to help us assess the probability of its upward movement. However,
will it go up is not the only question to ask - we also need to analyze the
chart to see how far it is likely to go up and also how much of a loss we are
willing to take to allow it to reach it's profit potential. The potential
profit of a trade divided by the potential loss of trade is known as the
Reward:Risk Ratio.
Read More...
Daily Market Commentary
Updated Monday, 9/18 for Tuesday's market
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Key DOW Levels for 9/19
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UP
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Above 11,650
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DN
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Below 11,525
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Winding Up...
- Dow trades sideways throughout session, winds up within sloppy
pattern. The index continues to trade within the boundaries of a fairly sloppy
pattern as it continues to wind up for the next key move.
- The NASDAQ and S&P each sold off from the day's highs today, but continue
to hold within the boundaries of the prior three day range. Look for continued
range movement before the next key breakout is seen.
Summary
The Dow ended the day quietly today after moving lower from the day's highs.
The index continues to hold beneath the 11,600 level and could be forming a
bearish pattern at the highs, which could cause a test of the key lower trend
line at 11,450. Watch 11,525 for direction tomorrow.
Read More...
Technical Indicators
Force Index
Developed by Dr. Alexander Elder, the Force Index combines price
movements and volume to measure the market. Unmodified Force Index results can
be rather erratic, better results are achieved by smoothing with an moving
average. A 2-day exponential moving average of the Force Index may be used to
track the strength of buyers and sellers in the short term while a 13-day
exponential moving average better measures the strength of intermediate cycles.
If the Force Index is above zero Elder would say, "the bulls are in
control." A negative Force Index would then signal that "the bears
are in control." If the Index remains close to zero neither side has
control and no strong trends exist.
The greater the distance from zero, the stronger the signal. If the Force Index
flattens out it indicates that either volumes are falling or large volumes have
failed to significantly move prices. Either situation is likely to precede a
reversal.
Read More...
