I need to know where everyone is relating to what I have posted. Any confusion? Any questions? Any other idiots out there that want to defend worthless gurus? SE
Trends: By now you should know that while in a trend, the 5MA is your point of reference. Where the stock/futures is in relation to the 5MA is your only point of concern ON A DAILY CHART! Everything I will teach you will relate to the current market environment, not what the market did a year ago or 2 weeks ago. When trading intraday, the 5min chart of the Nasdaq Composite is how you are going to identify the current trend. We will go into this next. SE
Would appreciate the easiest non subscription chart site so that I can follow along with the QQQ example - not looking to trade it live - just want to follow the course when possible next week with as many averages as possible. Thanks. Geo.
Hmmm... saw how quickly a bunch of people downloaded that meaningless chart I used in my example... so here's something that might conceivably be more helpful or at least relevant:
Just did a search, Kimble was arrested in Feb for investment fraud. http://online.securityfocus.com/news/443
5min Chart of Nasdaq Composite: How do you use this chart? Working with this chart will define you as a trader. Every trend in the broad market starts with a bottoming process, followed by volatility, and then what I call "the 5MA" test. The market first bottoms, you are not concerned with the bottoming process, but what is of concern to you is when the Nasdaq bottoms, then wiggles around, and finally hops on its 5 period MA and starts a trend. When this trend starts it usually ends at the close of the day, since, sentiment can change the following day. Look at a chart of the Nasdaq comp on Friday (6/5). If you look at how the stock opened (gap up) and noticed where the 5MA was in relation to price, you would have noticed that once the composite hit its 5MA it hugged it and rode it up all the way to the close. In the meantime, you had some volatility and the 20MA served as support to knock it back up above the 5MA (at around 12pm ET). What this means is that when a stock opens up for trading you have to be aware of the 5MA and where this moving average is in relation to the opening price. Look at Wednesday's session. The gap down open, but the 5MA is far away from the open, overhead, and the composite moves towards the 5MA, 20MA, and 40MA. The 40MA is the pivot that sends the stock back to new lows. More to come SE
I just didn't want to use any vendor charts so that moderators can't come in and shut the board down for using snapshots of copyrighted material. But thanks for posting that chart! SE