AI
Sunday, August 20, 2006 1:09:40 AM
QQQQ - Nightly Comments...
Subscribers to the Support & Resistance Report recieve not only areas of "Gathering Support" (Buy Alerts) and areas of "Gathering Resistance" (Sell Alerts), they also receive nightly comments on the QQQQ, including what to watch for in the next day's trade.
Here is an example from last Tuesday evening's comments:
Today's Results (For Tuesday, August 15th):
The QQQQ changed its tune on Tuesday. Instead of selling off after a strong open, as has been its custom in recent days, it held its gains and added to them into the close, and it did so on rising volume:
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID735617
The following 5-Minute Chart shows how the QQQQ pulled back from its initial approach to Tuesday's area of "Gathering Resistance", then recovered to capture "Gathering Resistance" in the afternoon, thereby, issuing a warning shorts:
For Wednesday, traders must realize that they are dealing with a new, more positive QQQQ, at least in the short-term.
A close above its "50-Day Moving Average" and the Summer's previous high ($37.63) on increasing volume suggests that the next leg up of the "Summer Rally" has begun.
Odds of a successful trade now favor purchases upon pullbacks to Support.
Interpreting the ADX Indicator (Daily Chart):
The thick black ADX Line which turned up from its long decline on Monday, continued to rise on Tuesday. An ADX Line that trends up suggests that the trading range is over and that a new trend is developing. Since the thin green line (buying pressure) is above the thin red line (selling pressure), the new trend is up.
An ADX Line that turns up and begins to rise is a sign that a new trend may be developing. If the thin green line is above the thin red line and rising, then the new trend will be up. If, however, the thin red line is above the thin green line and rising, then the new trend will be down.
Subscribers to the Support & Resistance Report recieve not only areas of "Gathering Support" (Buy Alerts) and areas of "Gathering Resistance" (Sell Alerts), they also receive nightly comments on the QQQQ, including what to watch for in the next day's trade.
Here is an example from last Tuesday evening's comments:
Today's Results (For Tuesday, August 15th):
The QQQQ changed its tune on Tuesday. Instead of selling off after a strong open, as has been its custom in recent days, it held its gains and added to them into the close, and it did so on rising volume:
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID735617
The following 5-Minute Chart shows how the QQQQ pulled back from its initial approach to Tuesday's area of "Gathering Resistance", then recovered to capture "Gathering Resistance" in the afternoon, thereby, issuing a warning shorts:
For Wednesday, traders must realize that they are dealing with a new, more positive QQQQ, at least in the short-term.
A close above its "50-Day Moving Average" and the Summer's previous high ($37.63) on increasing volume suggests that the next leg up of the "Summer Rally" has begun.
Odds of a successful trade now favor purchases upon pullbacks to Support.
Interpreting the ADX Indicator (Daily Chart):
The thick black ADX Line which turned up from its long decline on Monday, continued to rise on Tuesday. An ADX Line that trends up suggests that the trading range is over and that a new trend is developing. Since the thin green line (buying pressure) is above the thin red line (selling pressure), the new trend is up.
An ADX Line that turns up and begins to rise is a sign that a new trend may be developing. If the thin green line is above the thin red line and rising, then the new trend will be up. If, however, the thin red line is above the thin green line and rising, then the new trend will be down.
Buy at Support
Sell at Resistance
*
*
*
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
