Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Nasdaq NDX Stock Index Futures Technical Study

Stock-Markets / Stock Index Trading Dec 05, 2009 - 02:51 PM GMT

By: Piazzi

Stock-Markets

Best Financial Markets Analysis ArticleI was lucky in the order, but I've always been lucky when it comes to killin' folks – Character of William Munny, as played by Clint Eastwood, in the Movie Unforgiven


This is a 5-min chart of NDX minis from 8:44 to 11:44 am

How does one survive a 3-hour hack job like that? The answer is simple: One does not! I mean unless one is lucky, or a genius trader, or in control of the market, or has no interest in short term trading.

Stepping a bit back, using a 60-min chart, things show a bit more sense and sensibility

Notice the mid-line starting at the low of November 20. It acted as resistance area a number of times and then became support, and that support held firm during the crazy hours of Thursday and Friday.

One technical characteristic of mid-lines and mid-ranges is that when they fail, price has often a tendency to swing towards the other end of the range -- action/reaction?

On November 30, price zoomed down through the mid range. But it stabilized soon, and ran back up and went upside through the mid-line. When the a bearish setup is reversed ,soon after the setup is established, one needs to examine a bullish outcome and take a hard look at any position established in line with the bearish setup.

Further on, notice the parallels I have drawn from the peaks of November 23, and 24. The one from November 24 has capped the price on all spikes.

It’s an old techniques. It’s simple and sometimes effective. Will the mid-line and parallels of the above chart hold forever? Of course not, but the mid-line was under serious attack on Thursday and Friday. It should hold. If it cannot, then, I would not be holding a short term long position backed only by prayers and not much else.

If I wanted to extend the same technique and get some sense of support further below, I could draw lines like I have in red on the chart below

I can still expand my study and apply more range study techniques

Notice On the chart below that I have boxed the two recent drops from November 11, and 25 (pink and purple boxes)

Now, if I project the boxed onto the top of the Friday spike, the bottom of the boxes, hit the areas of the two parallel read line support s that I have drawn.

So, on Monday, and Tuesday, if things unravel, and bears finally get their wishes, the above is a chart that I will use as a backdrop to price action.

Of course, bears need to do more than just wishing, they need to short and withstand squeezes. If they can’t, and market drags on, up through the week, then the above picture may change and new studies may be needed to identify new areas of interest.

That is the tricky part of short term trading. On a weekly chart, a technical study may last for a long time. On a 60-min chart, one may need to re-evaluate daily if not more frequently. On a 5-min chart, you are in no-man’s land.

In Clint Eastwood’s unparalleled masterpiece of a western, Unforgiven, near the end, the character of William Munny goes on shooting down many of his opponents and scaring the rest.

After it’s all settled down, one pacifist writer of a character asks him how he chose whom to shoot first because, when confronted by superior numbers, an experienced gunfighter would always fire on the best shot first. 

Now that is how a writer who has never had a gun sees it, trying to rationalize and find a sense of order.

The real gunman who has just killed so many and scared the rest sees it quite differently. He says:

“I was lucky in the order, but I've always been lucky when it comes to killin' folks“

So, on a 5-min chart, good luck, and good stops, ‘cause you gonna need’em

PS. My special thanks to my colleague Joe K for getting me interested in mid-line studies

By Piazzi

http://markettime.blogspot.com/

I am a self taught market participant with more than 12 years of managing my own money. My main approach is to study macro level conditions affecting the markets, and then use technical analysis to either find opportunities or stay out of trouble. Staying out of trouble (a.k.a Loss) is more important to me than making profits. In addition to my self studies of the markets, I have studied Objective Elliott Wave (OEW) under tutorship of Tony Caldaro.

© 2009 Copyright Piazzi - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in