Not only was Friday’s trading day active and interesting, but price gave us a neat example of the “fractal” concept of the Elliott Wave principle. Let’s take a look to see a good educational example of the concept played out on the ultra-short 1-minute timeframe:
I wanted to highlight a particular ‘indicator’ in TradeStation and other trading platforms that allows you to compare relative volume off the opening session with prior opening sessions of the same length.
In TradeStation, the symbol is $TVOL – and here is what the current morning’s graph shows for the first hour’s volume in comparison with prior days:
I wanted to step further inside the GLD break and highlight the initial break, apex test, and then breakaway gap as this served as an excellent example to showcase these concepts.
I can’t say I’m entirely surprised by the announcement today (via Yahoo Finance) that Deutsche Bank will end the Double-Leveraged Crude Oil ETN under symbol DXO. The full story is tantalizingly entitled, “ETN Shutdown Won’t Be the Last.” Be sure to read the full story by Don Dion (from TheStreet.com).
A couple of readers have asked my take on the Shanghai ($SSEC) Stock Market in light of Monday’s “mini-crash” and down-move that preceded it. Let’s take a quick look at the Weekly and Daily structure for more clues and lessons.
A reader asked me to take a look at Dell Computers Inc (DELL) and I thought it had an interesting pattern certainly worth showing. Let’s take a look at the Weekly and Daily technical structure of DELL.
Though the day’s not up yet, I wanted to share a quick take on today’s “Rounded Reversal” pattern in the SPY, as it serves as a great educational example.
Today served as a great lesson of the “Elliott’s Fractals” trade concepts I frequently mention here on the blog.
The main idea is to recognize a new momentum and price high (impulse) for a potential 3rd wave, and then wait for a pullback into support. Buy into the support and play for a possible 5th wave that should end in a momentum divergence. Today served as a great lesson of the “Elliott’s Fractals” trade concepts I frequently mention here on the blog.
The main idea is to recognize a new momentum and price high (impulse) for a potential 3rd wave, and then wait for a pullback into support. Buy into the support and play for a possible 5th wave that should end in a momentum divergence.
In early July, I analyzed IBM’s daily and weekly structure because there were clearly conflicting signals depending on whether you examined the Weekly or Daily timeframe. Please reference the original post “Conflicting Signals in IBM” which was also published at the MoneyShow.com for the background before reading the resolution.
The main idea was that if you examined the Daily Chart in isolation, you would have seen a negative divergence along with a breakdown of moving average support and the likely expectation for a major trend reversal down to be the dominant trading idea – short.
General Electric (GE) gives us a great example of how the patterns in technical analysis (charting) are fractal, and are applicable to all timeframes. Let’s take a look at perhaps the most massive bear flag I have seen, which serves as an ideal educational example of the “Enhanced Flag” concept.