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Chico,
I can't thank you enough for bringing this to my attention.
StockCharts.com and other data providers mistakenly recorded a high of day of $42.30 last Monday which has since then been corrected.
A corrected spreadsheet is on its way.
The correction is important in that it effects the location of "Gathering Resistance" for Monday's trade.
Mike
Re: They were "Stooges" indeed!
LOL! Slap the three of them for me, will you?
You are correct in your observation that the "Support & Resistance Report" is not a "guarantee" of a successful trade. It is, however, a good "guideline" that works most of the time.
One rule that I try to follow is to avoid a trade whenever a Sell Signal is triggered by a price that gaps above an area of "Gathering Resistance" at the open, as was the case on Friday. That's a "no trade" situation for me unless the price pulls back below the area of "Gathering Resistance" and begins using it as such.
That happened at one point on Friday and provided a temporary opportunity for a modest short trade.
It's a good idea, too, to use the various stock indicators (CCI, MACD and ADX) in combination with the "Support & Resistance Report" Buy and Sell Signals.
I haven't tried Nocona's RSI-5 approach, yet. I have, however, read enough good feedback about it to convince me to look into it (create an hourly chart and slap an RSI-5 on it).
Mike
Chico,
Let's face it.
Between Monday's succer punch (heavy volume sell off which started at 3:15pm) and Friday's "gap up" on the "Jobs Report", it was a difficult trading week.
Nevertheless, traders who ventured a purchase at Monday's and Wednesday's area of "Gathering Support" between $41.33 and $41.39 ended up with at least one good trade for the week.
I guarantee that a lot of traders were dumping their shares at a loss on Monday, Tuesday and Wednesday...just when they should have been buying.
Resistance, when captured, becomes Support...
Kovu,
Let's get our terms straight...
Support does not get "captured".
Resistance gets "captured" (by a rising price).
Support gets "violated" (by a falling price).
When either of those two things happen, the following principles of Support and Resistance apply:
1) Resistance, when "captured", becomes Support.
2) Support, when "violated", becomes Resistance.
These two principles are "in play" every day in the market.
Traders who are unaware of them or choose to ignore them, do so at their own peril.
When you receive the "Support & Resistance Report" that applies to Monday's trade, you will see a thick area of Support beneath Friday's closing price ($42.16).
By "thick" area of Support, I mean that there are 7 individual aspects of Support beneath Friday's closing price, most of which are only 2 to 6 cents from its neighbor.
That doesn't mean that the QQQQ won't slosh around within that 7 member range on Monday.
It does mean, however, that it will required an extreme amount of weakness for the QQQQ to violate that 7 member area and continue lower.
It may mean that the odds favor a little more upside after the sloshing is over.
Congratulations on the profit from your fist live trade. It was a difficult trading week last week and a 49 cent profit represents good success.
A lot of traders where selling at Monday's, Tuesday's and Wednesday's lows...just when they should have been buying...at the area of "Gathering Support" between $41.33 and $41.39.
Mike
Re: Winfree's Support and Resistance...
Hi Chico,
"The support and resistance levels he gives are great for a trading range situation, and very reliable, but in a trending market..."
In a trending market, the Support and Resistance levels still work, but in a different way...
The key to making them work is found in one of the principles of Support and Resistance. That principle states, "Resistance, once captured, often becomes Support".
The QQQQ demonstrated how that principle can be used for fun and profit on Friday...
As a subscriber to the Support & Resistance Report, you know that Thursday's area of "Gathering Resistance" was between $41.83 and $41.95. After printing a high of $41.99, Resistance was found. The QQQQ pulled back 26 cents to a subsequent low of $41.73.
On Friday, however, Thursday's area of "Gathering Resistance" was captured when the QQQQ opened at $42.11 and rose to a high of $42.21.
According to the principle of Support and Resistance as stated above, when Thursday's area of "Gathering Resistance" between $41.83 and $41.95 was captured on Friday, it was, thereby, transformed into an area of "Gathering Support".
In order to relieve any doubts that Thursday's area of "Gathering Resistance" was now an area of "Gathering Support", the QQQQ pulled back from its high of $42.21 to a subsequent low of $41.94 (the high end of Thursday's area of "Gathering Resistance").
Support was found and the QQQQ recovered to close at $42.16.
The point that I am trying to make is that even trending markets pull back, and that when they do, they often find Support at former areas of "Gathering Resistance" that were transformed into areas of "Gathering Support" when they were captured by a rising price.
"Resistance, once captured, becomes Support".
Mike
Chico, I think that I see the solution ...
There are two locations within the "Medved QuoteTracker" for specifying the settings of the Audio Alert System:
1) The "Alerts Default" Tab ... Whatever is specified here will be applied to all members of your portfolio.
2) The "Alerts" Tab ... This is where you can override the "Default" settings with settings that are unique for each individual member of your portfolio.
I have to mute the Stooges once in a while myself - LOL
Mike
Chico, Audio Alert is working?...
That's great news!
But now, I'm confused. I don't see a checkbox on my popup alerts.
Does the checkbox have a name?
Thanks,
Mike
daaverage, I'm glad that you are doing well...
with the Support & Resistance Report spreadsheet.
It does me good to hear it.
Good Trading To You,
Mike
Hmmm! That may be something that you need to bring to Jerry Medved's attention.
I've noticed that Jerry has an I-Hub membership and is more than happy to assist traders in their use of the fine trading software that bears his name, The Medved QuoteTracker.
BTW, I see that you are working on your own spreadsheet???
Let me know if I can help.
Mike
Sound Files For The "Medved QuoteTracker"...
You may play the following sound files by clicking on the link.
You may download the sound files by right-clicking on the link and selecting "Save Target As".
Enjoy!
Bogey - Gin Joints
Groucho - You Call This A Party?
Three Stooges - I'm Trying To Think
Three Stooges - Wake Up Sleepy Heads
Three Stooges - Hello! Hello!! Hello!!!
Mask - You Were Good, Kid, Real Good!
Mask - MamaMia, That's A Spicy Meetball!
Dr. Seuss
Wizard Of Oz - The Good Witch
Wizard Of Oz - The Wicked Witch
Wizard Of Oz - The Wizard
Dragnet Theme
The Borg - Resistance Is Futile
Gone With The Wind - Birthin Babies
Nixon - I Am Not A Crook
Bush Senior
Hi Little Chico! The Audio Alert...
"can anyone tell me how to get the audio alert to work?"
The Audio Alert of the Medved QuoteTracker that enables you to use your own sound files (.wav) is working fine at this end.
Here are my Custom Audio Alert Settings:
1) The "Audio Alert" CheckBox is checked.
2) The "Custom" Radio Button is selected.
3) The Text Box specifies the location of my sound file on my C: Drive.
4) When I click the "Test" Button, the sound file plays.
In my next post, I will list a few of my favorite sound files, all of which may be downloaded for your own use in the "Medved QuoteTracker" Audio Alert system.
Phelps-Dodge Corp (PD) of the "Basic Materials" Sector...
has been added to the Support & Resistance Report spreadsheet and to my Public Charts at StockCharts.com
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Phelps-Dodge Corp (PD) of the "Basic Materials" Sector...
has been added to the Support & Resistance Report spreadsheet and to my Public Charts at StockCharts.com
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Phelps-Dodge Corp (PD) of the "Basic Materials" Sector...
has been added to the Support & Resistance Report spreadsheet and to my Public Charts at StockCharts.com
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Thanks gloe...
I posted those observations on the QQQQ only to look up at my monitor to see a 22 cent spike to today's high, so far, of $41.72.
The QQQQ has since then, pulled back and is currently testing the combinded strenght of the "50-Day MA" and the "20-Week MA" in order to see if they are now willing to serve, once again, as Support.
What does Mark Douglas say in his book, "Trading In The Zone"?..."Anything can happen at any moment in the market".
The last two days have demonstrated the truth of that statement.
In closing, the QQQQs are back below the "50-Day" and the "20-Week".
What a fun day!
Mike
In addition too the 'Support & Resistance Report' spreadsheet,
Nightly observations are offered on the QQQQ that are relevant for the next day's trade.
Here is a portion of Monday night's comments:
"For Tuesday, it will be important, in the short-term, for the low of mid-April ($41.39) to provide Support. If it does not, the door opens to a test of Support at the low of late March ($40.82)...See the dashed gray lines on the Daily Chart.
It will also be important, in the intermediate-term, for Monday's considerable area of "Gathering Support" that was violated by the late day sell off, to be re-established as Support, if not tomorrow, then sometime this week or next.
That's because Monday's area of "Gathering Support" included two individual aspects of Support that are "heavy-duty" in their own right, namely the "50-Day Moving Average" and the "20-Week Moving Average".
It's never good for a stock to spend too much time below either one of those two important aspects of Support. In fact, if the QQQQ rises to find Resistance at them in Tuesday's trade, I would not nurture thoughts of going long."
**********************
The "20-Week-Moving Average" stands at $41.56 going into Tuesday's trade.
The "50-Day Moving Average" stands at $41.61.
In addition too the 'Support & Resistance Report' spreadsheet,
Nightly observations are offered on the QQQQ that are relevant for the next day's trade.
Here is a portion of Monday night's comments:
"For Tuesday, it will be important, in the short-term, for the low of mid-April ($41.39) to provide Support. If it does not, the door opens to a test of Support at the low of late March ($40.82)...See the dashed gray lines on the Daily Chart.
It will also be important, in the intermediate-term, for Monday's considerable area of "Gathering Support" that was violated by the late day sell off, to be re-established as Support, if not tomorrow, then sometime this week or next.
That's because Monday's area of "Gathering Support" included two individual aspects of Support that are "heavy-duty" in their own right, namely the "50-Day Moving Average" and the "20-Week Moving Average".
It's never good for a stock to spend too much time below either one of those two important aspects of Support. In fact, if the QQQQ rises to find Resistance at them in Tuesday's trade, I would not nurture thoughts of going long."
**********************
The "20-Week-Moving Average" stands at $41.56 going into Tuesday's trade.
The "50-Day Moving Average" stands at $41.61.
Kovu, I guess that there IS such a thing as Resistance...
and Support, too
Mike
"How do you define a day trade?"...
This is a question that was posed at the "Medved QuoteTracker User Group" message board. It is a good question that deserves repeating here.
*******
A "day trade" is one which is established, then closed, within the same day.
It is similar to a "swing trade" in that it is best established at either an area of "Gathering Support" if going long or an area of "Gathering Resistance" if going short.
The rules for exiting a "day-trade", however, are not as clear-cut as are those for exiting a "swing trade".
Here is the approach, in part, that I take:
If I venture a purchase, for example, at "Gathering Support", I keep an eye on the 5-Minute Chart. If the trend turns up, as it often does from an area of "Gathering Support", and if pullbacks are finding Support at the rising 20-Period Moving Average, then, I figure that it is safe to hold on.
I also keep an eye on the "Support & Resistance Report" spreadsheet. It keeps me informed as to which individual aspects of Resistance lie just ahead. An individual aspect of Resistance, whether it be a moving average, a bollinger band, an "R2" Pivot Number, or the previous day's high, etc. can serve as "natural" place at which to close a "day trade".
It's also a good idea to keep an eye on the CCI and ADX Indicators of a 5-Minute Chart. Extreme readings in either or both of these indicators can serve as a sign that it is time to exit a "day trade".
An "extreme" reading for the CCI would be above +200 for a trade on the long side or below -200 for a trade on the short side.
An "extreme" reading for the ADX Indicator would be above 40 for both a long or a short trade.
The most important trading rule that I try to follow is "Never let a winning trade turn into a loser" and if it does turn into a loser, keep the loss small...
It's ordinarily unnecessary to take more than a 10 to 15 cent loss on a QQQQ trade with the aid of the "Support & Resistance Report".
"How do you define a day trade?"
A "day trade" is one which is established, then closed, within the same day.
It is similar to a "swing trade" in that it is best established at either an area of "Gathering Support" if going long or an area of "Gathering Resistance" if going short.
The rules for exiting a "day-trade", however, are not as clear-cut as are those for exiting a "swing trade".
Here is the approach, in part, that I take:
If I venture a purchase, for example, at "Gathering Support", I keep an eye on the 5-Minute Chart. If the trend turns up, as it often does from an area of "Gathering Support", and if pullbacks are finding Support at the rising 20-Period Moving Average, then, I figure that it is safe to hold on.
I also keep an eye on the "Support & Resistance Report" spreadsheet. It keeps me informed as to which individual aspects of Resistance lie just ahead. An individual aspect of Resistance, whether it be a moving average, a bollinger band, an "R2" Pivot Number, or the previous day's high, etc. can serve as "natural" place at which to close a "day trade".
It's also a good idea to keep an eye on the CCI and ADX Indicators of a 5-Minute Chart. Extreme readings in either or both of these indicators can serve as a sign that it is time to exit a "day trade".
An "extreme" reading for the CCI would be above +200 for a trade on the long side or below -200 for a trade on the short side.
An "extreme" reading for the ADX Indicator would be above 40 for both a long or a short trade.
The most important trading rule that I try to follow is "Never let a winning trade turn into a loser" and if it does turn into a loser, keep the loss small...
It's ordinarily unnecessary to take more than a 10 to 15 cent loss on a QQQQ trade with the aid of the "Support & Resistance Report".
Kovu, Good Catch!
Looks like my data provider (I won't mention who was late getting the funds updated on Thursday.
I will put in the patch this weekend and keep an eye on them from now on.
Thanks,
Mike
OIH was also added to the "Support & Resistance Report" spreadsheet this weekend.
It, along with $OSX, APA and RIG are good to go for Monday's trade.
$MID, MDY and UMPIX ...
have been added to the Support & Resistance Report spreadsheet and to my Public Charts at StockCharts.com
These additions come to you by special request from KovuLK.
gloe, BTW, one of your earlier posts...
on another board led me to Brett Steenbarger's web site.
Thanks for that:
http://www.traderfeed.blogspot.com/
gloe, Thanks for the clarification...
No, you didn't say anything to make me think that you base today's trading decisions on yesterday's Pivot Numbers
My humble addition to your informative post was more in reply to smartone's post.
Support & Resistance ROCKS???
Amen, Brother!
Hi Kov,
The spreadsheet that displays a running record of QQQQ Trades that are based on the "Buy" and "Sell" Signals that published each evening in the "Support & Resistance Report" is updated each weekend.
BTW, I have added the 3-pack that you requested to the "Support & Resistance Report" spreadsheet.
$MID, MDY and UMPIX are good to go for Monday's trade.
gloe,
Thank you for your very informative post!
Here is another thought about "R2" ... It has a lifespan of 1 day, as do the other Pivot Numbers, "S2" and "PIVOT".
That's because Pivot Nubmers are derived from the previous day's high, low and closing price. Friday had another set of Pivot Numbers in force that were derived from Thursday's high, low and closing price.
For that reason, it's usally not a good idea to base the next day's trade on the previous day's Daily Pivot Numbers, unless, of course, the previous day's Daily Pivot Number is part of an area of "Gathering Resistance" or "Gathering Support".
landm19, OIH? It's funny you should ask...
I added it to the "Support & Resistance Report" spreadsheet only a few minutes ago.
It will be there in preparation for Monday's trade along with $OSX, APA and RIG.
QQQQ Trades (Weekend Update)...
For the Week Ending Friday, April 28th:
$1.32 = Profit from the 'Support & Resistance Report' Strategy (Day Trades)
$0.99 = Profit from the 'Support & Resistance Report' Strategy (Swing Trades)
($0.15) = Loss from a 'Buy and Hold' Strategy
From 03/06/06 thru 04/28/06:
$9.11 = Profit from the 'Support & Resistance Report' Strategy (Day Trades)
$7.56 = Profit from the 'Support & Resistance Report' Strategy (Swing Trades)
$0.45 = Profit from a 'Buy and Hold' Strategy (QQQQ Closed at $41.45 on Friday, March 3rd)
A record of 'Buy' and 'Sell' Signals that produced the results above may be viewed by clicking on the following link: A Record of 'Buy' and 'Sell' Signals
The record of 'Buy' and 'Sell' Signals is an Excel spreadsheet. If you do not have "Excel for Windows" on you PC, you may download a free copy at the following Microsoft web site: Excel Viewer Program
For an example of the "Support & Resistance Report", including an explanation of how it works and why it works, visit the Support & Resistance Report web site.
*************************************
Feel free to view the QQQQ Charts as often as you like.
QQQQ Trades (Weekend Update)...
For the Week Ending Friday, April 28th:
$1.32 = Profit from the 'Support & Resistance Report' Strategy (Day Trades)
$0.99 = Profit from the 'Support & Resistance Report' Strategy (Swing Trades)
($0.15) = Loss from a 'Buy and Hold' Strategy
From 03/06/06 thru 04/28/06:
$9.11 = Profit from the 'Support & Resistance Report' Strategy (Day Trades)
$7.56 = Profit from the 'Support & Resistance Report' Strategy (Swing Trades)
$0.45 = Profit from a 'Buy and Hold' Strategy (QQQQ Closed at $41.45 on Friday, March 3rd)
Feel free to view the QQQQ Charts as often as you like.
***************************************************************
A record of 'Buy' and 'Sell' Signals that produced the results above may be viewed at the Support & Resistance Report web site.
QQQQ Trades (Weekend Update)...
For the Week Ending Friday, April 28th:
$1.32 = Profit from the 'Support & Resistance Report' Strategy (Day Trades)
$0.99 = Profit from the 'Support & Resistance Report' Strategy (Swing Trades)
($0.15) = Loss from a 'Buy and Hold' Strategy
From 03/06/06 thru 04/28/06:
$9.11 = Profit from the 'Support & Resistance Report' Strategy (Day Trades)
$7.56 = Profit from the 'Support & Resistance Report' Strategy (Swing Trades)
$0.45 = Profit from a 'Buy and Hold' Strategy (QQQQ Closed at $41.45 on Friday, March 3rd)
QQQQ Charts
***************************************************************
A record of 'Buy' and 'Sell' Signals that produced the results above may be viewed at the Support & Resistance Report web site.
QQQQ Trades (Weekend Update)...
For the Week Ending Friday, April 28th:
$1.32 = Profit from the 'Support & Resistance Report' Strategy (Day Trades)
$0.99 = Profit from the 'Support & Resistance Report' Strategy (Swing Trades)
($0.15) = Loss from a 'Buy and Hold' Strategy
From 03/06/06 thru 04/28/06:
$9.11 = Profit from the 'Support & Resistance Report' Strategy (Day Trades)
$7.56 = Profit from the 'Support & Resistance Report' Strategy (Swing Trades)
$0.45 = Profit from a 'Buy and Hold' Strategy (QQQQ Closed at $41.45 on Friday, March 3rd)
QQQQ Charts
***************************************************************
A record of 'Buy' and 'Sell' Signals that produced the results above may be viewed at the Support & Resistance Report web site.
QQQQ Trades (Weekend Update)...
For the Week Ending Friday, April 28th:
$1.32 = Profit from the 'Support & Resistance Report' Strategy (Day Trades)
$0.99 = Profit from the 'Support & Resistance Report' Strategy (Swing Trades)
($0.15) = Loss from a 'Buy and Hold' Strategy
From 03/06/06 thru 04/28/06:
$9.11 = Profit from the 'Support & Resistance Report' Strategy (Day Trades)
$7.56 = Profit from the 'Support & Resistance Report' Strategy (Swing Trades)
$0.45 = Profit from a 'Buy and Hold' Strategy (QQQQ Closed at $41.45 on Friday, March 3rd)
QQQQ Charts
***************************************************************
A record of 'Buy' and 'Sell' Signals that produced the results above may be viewed at the Support & Resistance Report web site.
Kovu, Congratulations, my friend...
I think that you have the hang of it.
Good Trading To You!
Mike
Ken,
Thank you, my friend.
That's how the "Support & Resistance Report" works in a nutshell.
Mike
Hi poiboy,
Thanks and congrats!
Did you take the Swing Trade Short from Tuesday's $42.08 Resistance?
Mike
Hi Ken,
Thanks for your kind words. It does me good to hear them.
An example of the spreadsheet along with an explanation of how it works and why it works may be found at the "Support & Resistance Report" web site.
I don't know if you have had a chance to visit that site yet, but here is the link: Support & Resistance Report
I have bookmarked your very informative web site as well.
Good Trading To You!
Mike
QQQQ Swing Trade Short ...
The Swing Trade Short that was established at Tuesday's area of "Gathering Resistance" ($42.08 on the nose)...
was closed this morning when the QQQQ fell to Thursday's area of "Gathering Support" between $42.57 and $42.51.
The minimum profit from this trade was 51 cents per share.
The maximum draw down for the trade was 2 cents when the QQQQ rose to a high of $42.10.
In addition, a "Swing Trade Long" that was established at Thursday's area of "Gathering Support" between $42.57 and $42.51 was closed a few minutes later when the QQQQ spiked to Thursday's area of "Gathering Resistance" between $42.08 and $42.30.
The minimum profit from this trade was, an additional 51 cents per share.
A Swing Trade is defined as a trip from "Gathering Support" to "Gathering Resistance" or vise versa.
It ordinarily takes more than one day to close a Swing Trade. On rare occasions, however, a Swing Trade can be closed within the same day that it is established. That's what happened with Thursday's Swing Trade Long.
QQQQ Swing Trade Short ...
The Swing Trade Short that was established at Tuesday's area of "Gathering Resistance" ($42.08 on the nose)...
was closed this morning when the QQQQ fell to Thursday's area of "Gathering Support" between $42.57 and $42.51.
The minimum profit from this trade was 51 cents per share.
The maximum draw down for the trade was 2 cents when the QQQQ rose to a high of $42.10.
In addition, a "Swing Trade Long" that was established at Thursday's area of "Gathering Support" between $42.57 and $42.51 was closed a few minutes later when the QQQQ spiked to Thursday's area of "Gathering Resistance" between $42.08 and $42.30.
The minimum profit from this trade was, an additional 51 cents per share.
A Swing Trade is defined as a trip from "Gathering Support" to "Gathering Resistance" or vise versa.
It ordinarily takes more than one day to close a Swing Trade. On rare occasions, however, a Swing Trade can be closed within the same day that it is established. That's what happened with Thursday's Swing Trade Long.
QQQQ Swing Trade Short ...
The Swing Trade Short that was established at Tuesday's area of "Gathering Resistance" ($42.08 on the nose)...
was closed this morning when the QQQQ fell to Thursday's area of "Gathering Support" between $42.57 and $42.51.
The minimum profit from this trade was 51 cents per share.
The maximum draw down for the trade was 2 cents when the QQQQ rose to a high of $42.10.
In addition, a "Swing Trade Long" that was established at Thursday's area of "Gathering Support" between $42.57 and $42.51 was closed a few minutes later when the QQQQ spiked to Thursday's area of "Gathering Resistance" between $42.08 and $42.30.
The minimum profit from this trade was, an additional 51 cents per share.
A Swing Trade is defined as a trip from "Gathering Support" to "Gathering Resistance" or vise versa.
It ordinarily takes more than one day to close a Swing Trade. On rare occasions, however, a Swing Trade can be closed within the same day that it is established. That's what happened with Thursday's Swing Trade Long.