3SOF

By analyzing the market,  I use a tool and it is very simple tool indeed and I also use this to buy stocks.

To be bullish in the market, the price must close above the 50sma daily scale at least...
& a quick glance on the weekly chart by using MACD Lines & MACD Histogram you can easily Identify where the market is heading.

Right now, the market is kind of scary a break of that bearish pattern or the 200ema weekly scale willl put Nasdaq under $1,950...

like EliteG said tighten your stops if you are in the long side.........

This looks like a nice tool Terliso...    On my chart notice how I am very zoomed in to the short-term chart while your charts are showing longer-term trends.  As long as you trade longer-term plays your method is fine but remember that the 50 ma has to be broken sometime...

I am looking for a quick sharp move upwards hopefully to the 200ma level(perhaps motivated by good earnings).. After that it will be time to re-analyze    So a 100 point upside call vs 40points to be proven wrong.. better than 2:1 ratio.  Lets rock!

               

               Surely looks good on a short term look but on a longer look it has more pessimistic signs.         Prices 50 day average remains well below the 200 day average and the gap between the 2 are growing rather than shrinking.
                 Momentum heads more into negative territory. and MACD's faster leading line is crossing back under the trailing average,a combined signal.
                  This indicates price is about to enter into a four day downstroke about 80 points.
                   A good time to short the Nasdaq.

Quote from: Terliso on July 11, 2006, 10:40:22 PM
To be bullish in the market, the price must close above the 50sma daily scale at least...

Ugly chart....

Quote from: eliteG on July 12, 2006, 01:07:53 AM
This looks like a nice tool Terliso...

Yup, Nice tool

Quote from: eliteG on July 12, 2006, 01:07:53 AM
On my chart notice how I am very zoomed in to the short-term chart while your charts are showing longer-term trends.  As long as you trade longer-term plays your method is fine.

Actually I'm using that tool for medium-term plays & it works just fine.... (1 to 6 months play)

Quote from: eliteG on July 12, 2006, 01:07:53 AM
but remember that the 50 ma has to be broken sometime...

Ohh yeah, absolutely... Everytime the market breach the 50sma (daily chart) in the downside for me that's always a call to be prepare, It's either the market continue to go up or go down. Unfortunately, this time the market chooses to go down.

The market is going crazy   .....We haven't seen the bottom yet... be alert my fellow traders

Hi,

We could have a bullish correction in Nasdaq (1-4 week)..That what chart seems to indicate if price break triangle...

An analysis of the NASDAQ Composite: which has broken out from a head and shoulders bottom. The head and shoulders bottom, like the head and shoulders top, is a reliable reversal pattern with only a 5% failure rate according the Bulkowski's Encyclopedia of Chart Patterns. The head and shoulders bottom is the exact inverse of the head and shoulders top and the pattern is clearly revealed in the following 6-month chart of the NASDAQ Composite.

The breakout occurred on Tuesday last week as the index broke through the neckline. As with the H&S Top, the neckline is drawn through the two peaks between the three troughs and the target after breakout is obtained using the measure rule. The measure rule takes the difference between the neckline on the date the 'head' is set and the low on that date. In this case, the measure rule gives a target of 140 and the neckline on the breakout day was 2090. Adding 140 to 2090 gives us a target level of around 2230. Bulkowski reports that 83% of these patterns achieve their target, so there is an excellent chance that the NASDAQ composite will rise another 66 points (3%) to reach that level. It it does so, it will break through the 200 day moving average and our market signal will return to 'enter'. Given the steep gains last week, it is not likely that a rise to the 2230 level will be achieved without a pullback on profit taking and we will probably see a test of support at around the 2125 level (the peak just before the right shoulder, which was resistance but now becomes support).
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Head and Shoulders Bottom (Reversal)
The head and shoulders bottom is sometimes referred to as an inverse head and shoulders. The pattern shares many common characteristics with its comparable partner, but relies more on volume patterns for confirmation.

As a major reversal pattern, the head and shoulders bottom forms after a downtrend, and its completion marks a change in trend. The pattern contains three successive troughs with the middle trough (head) being the deepest and the two outside troughs (shoulders) being shallower. Ideally, the two shoulders would be equal in height and width. The reaction highs in the middle of the pattern can be connected to form resistance, or a neckline

The price action forming both head and shoulders top and head and shoulders bottom patterns remains roughly the same, but reversed. The role of volume marks the biggest difference between the two. Generally speaking, volume plays a larger role in bottom formations than top formations. While an increase in volume on the neckline breakout for a head and shoulders top is welcomed, it is absolutely required for a bottom.

Head and shoulder bottoms are one of the most common and reliable reversal formations. It is important to remember that they occur after a downtrend and usually mark a major trend reversal when complete. While it is preferable that the left and right shoulders be symmetrical, it is not an absolute requirement. Shoulders can be different widths as well as different heights. Keep in mind that technical analysis is more an art than a science. If you are looking for the perfect pattern, it may be a long time coming.

Analysis of the head and shoulders bottom should focus on correct identification of neckline resistance and volume patterns. These are two of the most important aspects to a successful read, and by extension a successful trade. The neckline resistance breakout combined with an increase in volume indicates an increase in demand at higher prices. Buyers are exerting greater force and the price is being affected.

Traders do not always have to chase a stock after the neckline breakout. Many times, but certainly not always, the price will return to this new support level and offer a second chance to buy. Measuring the expected length of the advance after the breakout can be helpful, but don't count on it for your ultimate target. As the pattern unfolds over time, other aspects of the technical picture are likely to take precedent. Technical analysis is dynamic, and your analysis should incorporate aspects of the long, medium and short term picture.

ALERT on Nasdaq...

For me bullish correction is end...Sold your positions if you habe bought stocks and became Bearish....

Hi,

Fibonacci numbers and Support/Resistance CAN BE COMBINED to find the future right way of the market...

In short term horizon, we have a pullback..

In long term horizon, we have a downtrend.

The market still bullish, it may last 'till the end of october before consolidation takes place

I think the resistance of nasdaq below 2,400 will be a support soon IMHO...

Nasdaq & Dow, Two thumbs up!!

Quote from: Terliso on October 23, 2006, 02:54:50 AM
I think the resistance of nasdaq below 2,400 will be a support soon IMHO...

Nasdaq & Dow, Two thumbs up!!

Now, 4 thumbs up!! he,he,he

The Cross.............

Technicals
Record Price High
Record Price Break Out

Last Price Quote is:
1.92%above 13-day MA
5.37%above 50-day MA