Ajay Jani mentioned on Twitter it may be worthwhile to revisit Facebook’s move back in 2013 and compare with stocks over the past couple of weeks that have had similar gains in price and volume. The goal is to gain insight into how Facebook progressed after its big move up. Maybe this will foretell how stocks with similar price and volume signatures may play out in the coming weeks.Continue reading
Historical studies have shown that chart patterns are consistently repeated over time. Mastering the art of recognizing specific patterns is key to growth investing.
In this week’s Stock Market Update, Mike Webster pointed out that the Nasdaq is now in a Power Trend. In this post we’ll look at what characteristics make up a Power Trend and we’ll also dive into three examples, two from dates in the past as well as the specifics of the current Power Trend.
Here are the primary considerations for a market to be considered in a Power Trend.
- Low above the 21-day for 10 consecutive days
- 21-day above the 50-day for five days
- 50-day in an uptrend
Once the 21-day crosses below the 50-day that is a sign the trend may be coming to an end. Mike also mentioned there are “circuit-breaker rules” that can end a PT before the 21-day to 50-day crossover.
It should be noted, I am using the Nasdaq for all the charts that follow.Continue reading
The first image highlights the daily and weekly action on the Nasdaq. The second chart shows the 5-minute activity for each day of the week. You can follow the discussion on Twitter at the bottom of the post.Continue reading
The first chart is the 30,000 foot view of the week’s action. The second chart shows the technical action more in detail. You can follow the discussion on Twitter at the bottom of the post.Continue reading
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