Medved Trader user group

[Mr Nasdaq]

How to tell if Support will hold...

The Support & Resistance Report and QuoteTracker:

All of the Gathering Support and Gathering Resitance Alerts that are published each evening by the Support & Resistance Report can be loaded into the QuoteTracker program in preparation for the next day's trade.

Here is an example of how to use QuoteTracker...

The Ultra Short Financials ETF (Symbol SKF) fell this morning (Wednesday, June 25th) to its area of Gathering Support between $128.89 and $128.82.

1) QuoteTracker alerted me with a pop-up window alert as soon as SKF hit $128.89.

2) I then used QuoteTracker to create a 5-Minute Chart (see below).

3) Below the Price Bars is the "CCI Histogram". This is the indicator that I use to tell whether Support is going to hold or not. Notice how the red bars of the CCI Histogram crossed above the thin blue line just before 11:00am. That was the sign that Support was likely to hold and that a purchase may be ventured.

4) Below the CCI Histogram is another indicator called "Fast Stochastics". A Stochastics reading below 20 is an "oversold" reading. It was another point in favor of venturing a purchase at Support. The combination of an oversold condition at Support always argues in favor of Support holding and producing a bounce.