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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.
Kovu, my CCI is set to the default of 20.
A Visualization of "Gathering Support"...
"Gathering Support" for BRCM was between $40.90 and $40.83 going into Wednesday's trade.
If you look at Wednesday's 5-Minute Chart for BRCM (below), you can see the area of "Gathering Support" and its usual effects.
Even if a stock has further downside ahead, as did BRCM on Wednesday, it will ordinarily pause and bounce at an area of "Gathering Support", thereby providing good opportunities for a scalp trade or two.
The "Support & Resistance Report", updated each evening in preparation for the next day's trade, identifies areas of "Gathering Support" and "Gathering Resistance" for over 50 popularly traded stocks and indexes:
A Visualization of "Gathering Support"...
"Gathering Support" for BRCM was between $40.90 and $40.83 going into Wednesday's trade.
If you look at Wednesday's 5-Minute Chart for BRCM (below), you can see the area of "Gathering Support" and its usual effects.
Even if a stock has further downside ahead, as did BRCM on Wednesday, it will ordinarily pause and bounce at an area of "Gathering Support", thereby providing good opportunities for a scalp trade or two.
The "Support & Resistance Report", updated each evening in preparation for the next day's trade, identifies areas of "Gathering Support" and "Gathering Resistance" for over 50 popularly traded stocks and indexes:
Laughing at "Gathering Support"???
"Gathering Support" for BRCM was between $40.90 and $40.83 going into Wednesday's trade.
If you look at Wednesday's 5-Minute Chart for BRCM (below), you can see the area of "Gathering Support" and its usual effects.
Even if a stock has further downside ahead, as did BRCM on Wednesday, it will ordinarily pause and bounce at an area of "Gathering Support", thereby providing good opportunities for a scalp trade or two:
Do you know Thursday's location of "Gathering Support" and "Gathering Resistance" for BRCM? ... I do.
Hi Dr. Worm,
Here is a more detailed explaination of Wednesdays BRCM Trade:
http://www.investorshub.com/boards/read_msg.asp?message_id=10832973
The market is in "scalp" mode at the moment and not "buy and hold" mode.
"Scalp" mode means, "take the money and run" when it is presented to you.
Hi gloe! You are correct when you say that a CCI between -250 and -300 occurs much less often that does a CCI of -200 and that a CCI of -200 is often a good place to venture a "low risk" purchase.
On those rare occations, however, when the CCI does dip to between -250 and -300, it makes the trade one of even lower risk.
Kovu, I will add $MID, MDY and UMPIX to the spreadsheet over the weekend...
Their charts have already been added to my Public Charts web site.
Thanks for the recommendation.
In regard to "darker lines in purple areas", you are correct when you say that they are property lines between two separate "clusters" of "Gathering Support" or "Gathering Resistance".
One more item for your "Bag of Trading Tricks"...
Whenever a stock is trading below its 20MA on the 5-Minute Chart, any trade on the long side is a "scalp" trade only.
A "scalp" trade means, "Take the money and run" when it is presented to you.
One more item for your "Bag of Trading Tricks"...
Whenever a stock is trading below its 20MA on the 5-Minute Chart, any trade on the long side is a "scalp" trade only.
A "scalp" trade means, "Take the money and run" when it is presented to you.
GLEN034,
Here are my comments on AAPL that were posted on another board earier today:
http://www.investorshub.com/boards/read_msg.asp?message_id=10830408
At this stage, I would say that as long as AAPL stays below the 20MA on the 5-Minute Chart, it has the potencial of being a good short.
"Gathering Support" and the CCI...
Add this trading technique to your "bag of tricks". It will put the odds of a successful trade even more in your favor...
When the price of stock falls to an area of "Gathering Support" (Buy Trigger), it is time to venture a purchase.
When the price of a stock falls to an area of "Gathering Support" and the CCI on the 5-Minute Chart falls to an extreme reading (between -250 and -300)...
then it is the closest thing to a "no brainer" purchase that the market provides.
It happened to BRCM this morning. Here is the 5-Minute Chart with the CCI attached. It shows the two ingredients of a successful scalp trade:
"Gathering Support" and the CCI...
Add this trading technique to your "bag of tricks". It will put the odds of a successful trade even more in your favor...
When the price of stock falls to an area of "Gathering Support" (Buy Trigger), it is time to venture a purchase.
When the price of a stock falls to an area of "Gathering Support" and the CCI on the 5-Minute Chart falls to an extreme reading (between -250 and -300)...
then it is the closest thing to a "no brainer" purchase that the market provides.
It happened to BRCM this morning. Here is the 5-Minute Chart with the CCI attached. It shows the two ingredients of a successful scalp trade:
"Gathering Support" and the CCI...
Add this trading technique to your "bag of tricks". It will put the odds of a successful trade even more in your favor...
When the price of stock falls to an area of "Gathering Support" (Buy Trigger), it is time to venture a purchase.
When the price of a stock falls to an area of "Gathering Support" and the CCI on the 5-Minute Chart falls to an extreme reading (between -250 and -300)...
then it is the closest thing to a "no brainer" purchase that the market provides.
It happened to BRCM this morning. Here is the 5-Minute Chart with the CCI attached. It shows the two ingredients of a successful scalp trade:
"Gathering Support" and the CCI...
Add this trading technique to your "bag of tricks". It will put the odds of a successful trade even more in your favor...
When the price of stock falls to an area of "Gathering Support" (Buy Trigger), it is time to venture a purchase.
When the price of a stock falls to an area of "Gathering Support" and the CCI on the 5-Minute Chart falls to an extreme reading (between -250 and -300)...
then it is the closest thing to a "no brainer" purchase that the market provides.
It happened to BRCM this morning. Here is the 5-Minute Chart with the CCI attached. It shows the two ingredients of a successful scalp trade:
NVDA rose to its area of "Gathering Resistance" (Sell Trigger) this morning. It stands between $29.31 and $29.32 for Wednesday.
It has subsequently pulled back to a low of $28.56.
BRCM hit its area of "Gathering Support" (Buy Trigger) just a moment ago. It stands between $40.90 and $40.83 for Wednesday.
It has already bounced into the $41.20s...
BRCM hit its area of "Gathering Support" (Buy Trigger) just a moment ago. It stands between $40.90 and $40.83 for Wednesday.
It has already bounced into the $41.20s...
mvp, That's great advice...
<<<
I take 15 minutes per day, input my numbers and act on the signal (if any). I deliberately listen to no financial news shows.
>>>
I take the exact same approach, except that since Jerry Medved has added the "Paste from Excel" button to his QuoteTracker program, I can import all of my alerts from an Excel spreadsheet in 10 seconds.
I have CNBC on during the trading day, but it is on mute most of the time. If I look up and notice something of interest, which isn't very often, only then do I turn up the volume.
I leaned a long time ago that CNBC is nothing but a noisy distraction.
be, Thanks for your good observations...
You are correct, the market is going nowhere fast at the moment...and it is likely a calm before the storm.
AAPL is demonstrating relative strenght today.
After finding Resistance at a 4-member area of "Gathering Resistance" between $67 and $67.14 going into Wednesday's trade and pulling back to a subsequent low of $66.51, it has since then captured the area of "Gathering Resistance" and then used it as Support.
Conclusion:
If the QQQQ has a good day, then AAPL will have one, too.
GLENO34, thanks for your high target of $42.17...
If the QQQQ overshoots that, it may mean that it is overextended on the day.
That's intersting in light of the fact that the "Support & Resistance Report" has identifed an area of "Gathering Resistance" (Sell Trigger) between $42.30 and $42.32 going into Wednesday's trade.
10:30am - Oil Inventory Report...
It may be a market mover that moves the QQQQ decisively above $42.00 or down to Wednesday's are of "Gathering Support" which stands between $41.57 and $41.54.
Chart & Comments Updated for QQQQ...
For those who wonder why the QQQQ could make no further headway from its strong open this morning, the reason is a triple portion of Resistance (Sell Trigger) at $42.08 on the nose going into Tuesday's trade.
After printing a high of $42.10, Resistance was found.
The QQQQ pulled back 45 cents to a subsequent low of $41.65.
The 3 individual aspects of Resistance that composed Tuesday's line of concentrated Resistance are as follows:
1) $42.08 (20-Day Moving Average)
2) $42.08 (Weekly Pivot Price)
3) $42.08 (Fibonacci 38% Retrace)
QQQQ (5 Minute Chart):
Chart & Comments Updated for QQQQ...
The 'Support & Resistance Report' identified a triple portion of Resistance (Sell Trigger) at $42.08 on the nose going into Tuesday's trade, and so it was found to be.
After printing a high of $42.10, Resistance was found.
The QQQQ pulled back 45 cents to a subsequent low of $41.65.
The 3 individual aspects of Resistance that composed Tuesday's line of concentrated Resistance are as follows:
1) $42.08 (20-Day Moving Average)
2) $42.08 (Weekly Pivot Price)
3) $42.08 (Fibonacci 38% Retrace)
QQQQ (5 Minute Chart):
Chart & Comments Updated for QQQQ...
The 'Support & Resistance Report' identified a triple portion of Resistance (Sell Trigger) at $42.08 on the nose going into Tuesday's trade, and so it was found to be.
After printing a high of $42.10, Resistance was found.
The QQQQ pulled back 45 cents to a subsequent low of $41.65.
The 3 individual aspects of Resistance that composed Tuesday's line of concentrated Resistance are as follows:
1) $42.08 (20-Day Moving Average)
2) $42.08 (Weekly Pivot Price)
3) $42.08 (Fibonacci 38% Retrace)
QQQQ (5 Minute Chart):
Areas of Support & Resistance shift from day-to-day...
kovu, the areas of "Gathering Support" (Buy Triggers) and "Gathering Resistance" (Sell Triggers) change from day-to-day because the values of the individual aspects of Support and Resistance that compose them change from day-to-day.
That's why I update the "Support & Resistance Report" each evening after the market closes.
Little Chico,
This is something new to me. It sounds like it is something worth knowing about, though.
When you find out what the red arrow is all about, will you let me know what feature of QuoteTracker it is associated with?
Thanks,
Mike
Chart & Comments Updated for NTAP...
04/24 - The 'Support & Resistance Report' identified an area of 'Gathering Support' (Buy Trigger) between $36.45 and $36.38 going into Monday's trade, and so it was found to be.
After printing a low of $36.38, NTAP rose $0.90 to a subsequent high of $37.28.
NTAP (5 Minute Chart):
V
V
V
Chart & Comments Updated for NTAP...
04/24 - The 'Support & Resistance Report' identified an area of 'Gathering Support' (Buy Trigger) between $36.45 and $36.38 going into Monday's trade, and so it was found to be.
After printing a low of $36.38, NTAP rose $0.90 to a subsequent high of $37.28.
NTAP (5 Minute Chart):
V
V
V
Kovu...
Well, if you can't trust a CPA, who can you trust - LOL
The QQQQ is demonstrating weakness so far today in that it is finding Resistance at what was Friday's area of "Gathering Support".
This is in accordance with one of the principles of Support & Resistance that states, "Support, once violated, often becomes Resistance".
There is no telling how the QQQQ will emerge from the doldrum hours. However, if it is unable to rise above what is now Resistance at the 20MA on the 5-Minute Chart, I would have no thoughts of going long and would not be surprised to find the QQQQ at Monday's area of "Gathering Support" before the day is done.
Mike
Hi kovu, Welcome Abord!
Feel free to post any questions that you may have and say hello to Nocona and daaverag for me.
You guys aren't sharing, are you?
Mike
A good question in regard to the "Support & Resistance Report"...
has been posed and addressed at the "Medved QuoteTracker User Group" message board:
A Good Question Posed
daaverage, here is an example of how the principle of "Support & Resistance" referenced in my last post would be applied to Monday's trade.
The "Support & Resistance Report" has identified an initial area of "Gathering Support" between $41.56 and $41.49 going into Monday's trade.
If, by chance, that area of Support is violated to the downside and subsequently demonstrates that it has been transformed by the violation into an area of "Gathering Resistance", I would not hesitate to venture a short position.
This is especially true since the area of "Gathering Support" is composed of two separate aspects of Support that are "heavy duty" in their own right:
1) $41.56 ("20-Week Moving Average")
2) $41.49 ("50-Day Moving Average")
Together, those two aspects of Support form a considerable area of "Gathering Support". A violation there would suggest extreme weakness.
For that area to then provide Resistance would suggest more downside to come.
daaverage,
You are referring to a "Swing Trade Short" that is best initiated at an area of "Gathering Resistance" (Sell Trigger) and then closed when it falls to an area of "Gathering Support" (Buy Trigger).
It is, of course, possible to be stopped out of a short position before rock bottom is reached when there is a multi-day period of unrelenting selling. It happens.
It depends, though, on the location of the area of "Gathering Support" (Buy Trigger). If it is low enough, it often represents "rock bottom".
On those occasions, however, when an area of "Gathering Support" is violated decisively to the downside, causing your short position to be closed too soon, do not despair.
If there is more downside to come, the market ordinarily provides a chance to re-enter a short position by rising to the violated area of "Gathering Support" and finding Resistance there. This is in accordance with one of the principles of "Support & Resistance" that states, "Support, once violated, becomes Resistance". Whenever you observe this phenomenon, it represents a chance to re-establish a short position.
Finally, you will notice that there will be days when the "Support & Resistance Report" identifies no area of "Gathering Support". When the market is demonstrating weakness and the S&R Report shows no area of "Gathering Support", it is often a warning to "look out below".
S&P 500 Performance Chart (Weekly Update)...
Performance Chart
Noncona, the Excel Reader (aka the Excel Viewer) will work fine for reading the "Support & Resistance Report" spreadsheet.
Excel for Windows - A Free Download...
The "Support & Resistance Report" is an Excel Spreadsheet.
If you do now have "Excel for Windows" on your PC, you may download a free copy of the "Excel Viewer" program from the following Microsoft web site:
http://www.microsoft.com/downloads/details.aspx?FamilyID=c8378bf4-996c-4569-b547-75edbd03aaf0&Di...
Excel for Windows - A Free Download...
The "Support & Resistance Report" is an Excel Spreadsheet.
If you do now have "Excel for Windows" on your PC, you may download a free copy of the "Excel Viewer" program from the following Microsoft web site:
http://www.microsoft.com/downloads/details.aspx?FamilyID=c8378bf4-996c-4569-b547-75edbd03aaf0&Di...
QQQQ Trades (Weekend Update)...
From 03/06/06 thru 04/21/06:
$7.86 = Profit from the 'Support & Resistance Report' Strategy (Day Trades)
$6.57 = Profit from the 'Support & Resistance Report' Strategy (Swing Trades)
$0.55 = Profit from a 'Buy and Hold' Strategy
QQQQ Charts
***************************************************************
A record of 'Buy' and 'Sell' Signals that produced the results above may be viewed at the Support & Resistance Report web site.