Never try to sell at the top. It isn’t wise.

Sell after a reaction if there is no rally.

Jesse Livermore

Configure Regression Channel in thinkorswim

On IBDLive, Chris Gessel often uses @thinkorswim to highlight technical action. Chris has been using a regression line that is discussed by Mike Webster on his Weekly Stock Market Update.

I’ve created a similar configuration that I thought others might find helpful. The image below shows the configuration that I describe in the steps that follow. Notice how the highs and lows of the Nasdaq Composite have held within the half standard deviations.

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Webby’s RSI in thinkScript

Mike Webster is the creator of Webby’s RSI (really simple indicator), a gauge on the health of an uptrend. Mike discusses the RSI each week in IBD’s Weekend Stock Market Update. You can read more about the RSI here.

An example of Webby’s RSI (bottom third of the chart):

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Power Trends Charted on Nasdaq and S&P 500

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.

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Stock Market Update – Visual Guide – Week of 5/25/20

The following three charts are based on @mwebster1971‘s Weekend Stock Market Update, The Raging Bull Rests.

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.

Technical Analysis of Two Historical Power Trends

Given we started a power trend on 5/8/2020, the topic has been a common theme of @mwebster1971‘s Weekend Stock Market Update.

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.

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Stock Market Update – Visual Reference – 5/18/20

Following are three charts that you can use as a visual reference for @mwebster1971‘s Weekend Stock Market Update for the week of 5/18/2020.

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.

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Buying Stock on Pullback and Upside Reversal

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.

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