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The "Support & Resistance Report" and the QQQQ
Last week, four QQQQ Trades based on the "Support & Resistance Report" produced a net profit of $1.45 per share while a "Buy & Hold" strategy for the week produced a loss of $0.10 per share.
From March 3rd through April 21st, QQQQ Trades based the "Support & Resistance Report" produced a net profit of $14.43 per share while a "Buy & Hold" strategy produced a net profit of $0.55 per share.
Feel free to view the QQQQ Charts as often as you like:
The Swing Trade Short that was established at Tuesday's area of "Gathering Resistance" ($42.08 on the nose)...
was closed this morning when the QQQQ fell to Thursday's area of "Gathering Support" between $42.57 and $42.51.
The minimum profit from this trade was 51 cents per share.
The maximum draw down for the trade was 2 cents when the QQQQ rose to a high of $42.10.
In addition, a "Swing Trade Long" that was established at Thursday's area of "Gathering Support" between $42.57 and $42.51 was closed a few minutes later when the QQQQ spiked to Thursday's area of "Gathering Resistance" between $42.08 and $42.30.
The minimum profit from this trade was, an additional 51 cents per share.
A Swing Trade is defined as a trip from "Gathering Support" to "Gathering Resistance" or vise versa.
It ordinarily takes more than one day to close a Swing Trade. On rare occasions, however, a Swing Trade can be closed within the same day that it is established. That's what happened with Thursday's Swing Trade Long.
Feel free to view the QQQQ Charts as often as you like:
The "Support & Resistance Report" identified an area of "Gathering Resistance" (Sell Trigger) between $39.35 and $39.56 going into Tuesday's trade, and so it was found to be.
After printing a high of $39.38, Resistance was found.
The QQQQ pulled back 81 cents to a subsequent low of $38.57.
QQQQ (5 Minute Chart):
Feel free to view the QQQQ Charts as often as you like:
The 'Support & Resistance Report' identified a 3-member area of "Gathering Resistance" (Sell Trigger) between $64.84 and $64.89 going into Monday's trade, and so it was found to be.
After printing a high of $64.90, Resistance was found.
RIMM fell $3.24 to a subsequent low of $61.66.
RIMM (5 Minute Chart):
Feel free to view my Pulblic Charts as often as you like:
The "Support & Resistance Report" identified a 2-member area of "Gathering Support" between $29.99 and $30.01 going into Monday's trade (June 19th), and so it was found to be.
After printing a low of $29.90 on Monday, Support was found. AKAM rose $1.87 to a subsequent high of $31.77 on Tuesday, June 20th. (See the 5-Minute Chart below).
AKAM (5 Minute Chart):
Feel free to view my Pulblic Charts as often as you like:
posted
Resistance, when captured, becomes Support...
The QQQQ demonstrated one of the principles of Support and Resistance in action on Thursday.
It's area of Gathering Resistance stood between $38.14 and $38.28 going into Thursday's trade.
The QQQQ found Resistance at that area upon its first approach, as is usually the case with an area of "Gathering Resistance".
The 2:15pm FOMC interest rate announcement, however, triggered a big push up that captured Thursday's area of "Gathering Resistance" by printing a high of $38.50.
A subsequent pull back to the upper end of Thursday's area of "Gathering Resistance" found Support at $38.26 from which the QQQQ continued its rally into the close.
That action demonstrates one of the principles of Support and Resistance that states, Resistance, when captured, becomes Support.
Thursday's area of "Gathering Resistance" (Sell Trigger) was transformed into an area of "Gathering Support" (Buy Trigger) when it was captured by a rising QQQQ.
QQQQ (5-Minute Chart):
Feel free to view my Public Charts as often as you like:
posted
Chart & Comments for AKAM, BBBY, NVDA and DNA...
Areas of "Gathering Support" and "Gathering Resistance" provide specific information about whether you should be in a trade or, perhaps more importantly, out of a trade:
1) When the price of a stock falls to an area of "Gathering Support" and is unable to fall below it (as is often the case with "Gathering Support"), then it is time to venture a purchase.
This Trading Rule applied to AKAM, BBBY and NVDA during Friday's trade (See the respective 5-Minute Charts below.)
2) When the price of a stock rises to an area of "Gathering Resistance" and is unable to rise above it (as is often the case with "Gathering Resistance"), then it is time to venture a short sale.
This Trading Rule applied to DNA during Friday's trade (See the 5-Minute Chart below.)
posted
I have a question. What does SFLK chart look like? I'm learing charts. To me it looks as if it is starting an up trend. Hince the word starting. With attention, could it go up higher? Thanks
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fourseven, since you are the second person who has inquired here about SFLK, I have added its chart to my Public Charts. You will find it on page 14.
The thick black ADX Line attached to the bottom of the chart is trending down. It suggests that the recent rally in SFLK is taking place within the context of a trading range and that it is NOT the beginning of a major new up trend.
SFLK is caught momentarily between Support at its "20-Day Moving Average" and Resistance at its "50-Day Moving Average".
The MACD indicator that is also attached to the bottom of the chart is also of interest. That's because the price of a stock rarely moves above and holds above its "50-Day Moving Average" when the MACD indicator is below the 0-Line as it is now.
The MACD is, however, rising at the moment. A close above the 0-Line would be a plus for SFLK.
In regard to the QQQQ, it is poised to test Resistance its October Low ($37.28). A capture of that Resistance could lead to a test of Resistance at the declining trend line on the Daily Chart.
The QQQQ is in the same situation as SFLK is in that its ADX Indicator is trending down suggesting that the current rally is occurring within the context of a trading range. Notice also that the rally is accompanies by declining volume. Declining volume often means that a rally lacks staying power.
Three 5-Minute Charts from last week show how the QQQQ relates to areas of "Gathering Support" (Buy Triggers) and areas of "Gathering Resistance" (Sell Triggers) which shift from day-to-day:
posted
Mr_Nasdaq, thanks for the breakdown, but I don't think I was clear in my original question. Given a chart like the one below, could you take a look the horizontal blue lines and share your opinion on how well you think these represent support / resistance levels?
-------------------- the market is not your mother
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The 'Support & Resistance Report' identifies areas of "Gathering Support" (Buy Triggers) and "Gathering Resistance" (Sell Triggers) for each day's trade as illustrated in the charts below:
Feel free to view my Public Charts as often as you like.
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posted
The QQQQ presented traders on Tuesday with the volatility that customarily follows a 2:15pm interest rate announcement.
The following 5-Minute Chart shows what happened at 2:15pm...first up...then down into Tuesday's area of "Gathering Support"...then up...then down...and finally, up into the close:
Feel free to view my Public Charts as often as you like.
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quote:Originally posted by BooDog: fyi The above was RIN. Thanks
a gap up with a finish down. typical NYSE to finish down when it should be up. But with a eod chart pointing in that direction. Such a teaser. Like a first date that your parents don't want you to know about. Squeeze a lil more when your ready. I got an eye on this one.
-------------------- All post are my opinion. Do your own DD. Who's clicking your buy/sell button!?
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The "Support & Resistance Report" strategy defines a "Swing" Trade as a trip from "Gathering Support" to "Gathering Resistance" or vise versa.
The following 5-Minute Chart shows how a "Swing Trade Long", opened at Tuesday's area of "Gathering Support" between $36.26 and $36.32 could have been closed anywhere within Wednesday's substantial area of "Gathering Resistance":
Feel free to view my Public Charts as often as you like.
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The following 5-Minute Chart displays Thursday's trading range between Tuesday's area of "Gathering Support" and Wednesday's area of "Gathering Resistance:
Feel free to view my Public Charts as often as you like.
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posted
The QQQQ slugged its way to the upper end of Monday's thick area of "Gathering Resistance" only to find itself exhausted by the effort:
When an area of "Gathering Resistance" is wider than usual, as it has been over the last few trading days, whether one should establish a short sale at the front door, or in the middle or near the top of that area can be a difficult question.
One tried and true technique in these cases is to allow the "20-Period Moving Average" of a 5-Minute Chart be your guide.
1) When a "20-Period Moving Average" is rising and 2) the price of the QQQQ is trading above it and 3) finding Support upon pullbacks to it...
then it's always a good idea to [u]postpone[/u] a short sale until the "20-Period Moving Average" stops rising [u]and[/u] the price of the QQQQ begins to trade below it. The 5-Minute Chart above shows how well that technique would have worked in dealing with Monday's wider than usual area of "Gathering Resistance".
Feel free to view my Public Charts as often as you like.
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quote:Originally posted by Mr_NASDAQ: fourseven, the hoizontal blue lines represent Support and Resistance very well.
If you did the drawing, I would say that you have a good grasp of how to identify Support and Resistance.
Mike
Thanks
These charts are auto-generated. It's still a work in progress kind of thing, but if you're interested, check out the stock monkey ... (it's usually up between 10 am and 12 pm PST)
Comments and suggestions are most welcome.
fourseven - at - myrealbox - dot - com
-------------------- the market is not your mother
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