Mike Webster and Irusha Peiris recently discussed power trends on the Investing with IBD Podcast. Ajay Jani took the time to code the concept in an Excel document which shows power trends for both the Nasdaq and S&P.
The orange indicator in the charts that follow, highlights where the power trend is on. The Nasdaq chart goes back to 1984 and the S&P 500 back to 1962. Richard Moglen helped Ajay with data acquisition.
The Excel document created by Ajay can be downloaded here: PowerTrends.zip
The first chart focuses on the daily activity as well as a summary of the moving averages at the close of the week.
As we move into next week, there are key levels to maintain both on the upside and downside.
It’s always good to see the view from 30,000 feet. The 5-minute chart that follows provides that perspective.
In a previous post, What is a Power Trend and How to Spot it on a Chart, I outlined the specifics needed to start a power trend. I also included examples of two power trends, one in 2016 and one in 2018.Continue reading
The first chart shows the 30,000 foot view of the week’s activity. I’ve highlighted the chart with colors to emulate a candlestick look on top of a 5-minute chart.Continue reading
I recently used a pullback followed by an upside reversal to buy shares in two stocks. One of the buys was within a base, which I used as an early entry. The second was a buy to add to an existing position.
It’s worth noting, I am not recommending either stock. My intention is to show how I used a pullback and reversal for two past trades.Continue reading
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