Three Educational Charts

Apr 23, 2007: 10:10 PM CST

Here are three charts that show past opportunities and some possibilities for the futures. All charts are for educational purposes and have minimal annotation.

US Dollar Index – Weekly

dollar-index.jpg

Comments:

  • Downtrending and may make new price lows
  • Potential support at the 2005 low – if broken, few levels of support below
  • Head and Shoulders pattern led to dramatic price decline
  • Note annotated momentum divergences which led to small targets
  • All Three Moving Averages are clearly sloping lower and aligned bearishly

Net Flix – NFLX – Weekly
nflx-apr-22.jpg

  • “Squeeze Play” led to possibility for playing for a large target – note momentum divergence building during squeeze
  • Consolidation currently taking place. Watch for break of triangle formation. May be months ahead.
  • Notice the pure swing action in the chart

Sears Holding – SHLD

shld-apr-23.jpg

  • Notice the “Squeeze Play” that led to a large target
  • Note the “Impulse Buy” trade that occurred after price expansion and New Momentum High
  • Note the “Three Swings” or “Three Pushes” that occurred after volatility/price expansion and the trades at the moving average pullbacks
  • Notice the momentum divergence forming as the “Three Push” pattern completes itself
  • Very bullish action, as confirmed by the alignment and slope of the moving averages

(Disclosure – I have no current positions in the highlighted stocks, but have traded positions in SHLD)

6 Comments

6 Responses to “Three Educational Charts”

  1. Fooper Says:

    In ffice right now will go through this latter.

    regards
    gibs
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  2. Hanno2 Says:

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    Thanks
    james kails
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  3. Gagan Rana Says:

    I loved the way you exlained things. Much better many here

    Thanks
    Gagan Rana
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  4. Gagan Rana Says:

    I loved the way you exlained things. Much better many here

    Thanks
    Gagan Rana
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  5. dbios Says:

    Explanations about the Graphs is simple which is useful to learn Graphs and its purpose.

    Thanks.

  6. dbios Says:

    That sounds the easiest way to understand the graphs and the explanations is also in smple way.

    Thanks.