Try This EMA For Your Trading

  • November 9, 2004
  • Tsutae Kamada

Besides moving averages, Fib levels
and horizontal lines, gaps can provide us good buying opportunities.
One thing I like about gap is it is so easy to find on a chart. In fact anyone
can spot it right away without help of specific tools. Gaps are not just holes
on a chart. They can be effectively utilized for daytrading.

11:30:21
(From TradersWire)

 TASER International (TASR)
is approaching
the top of a gap zone, and it may become a support level. TASR is down
4.29 at 49.82.

Look at the chart below. So bearish! Probably many market participants were
thinking about bailing out. The stock was wiping out most of yesterday’s gain,
and it appeared the upper boundary was about to collapse.

Now, take a look at the 5-minute chart. There is the 240-period EMA (a Kevin
Haggerty favorite)  slightly above the upper boundary of the gap. Notice,
TASR formed a 1-2-3 bottom. The second bottom was shaped with a bullish hammer.
A gap alone can be a substantial signal for some traders, but always try to get
multiple signals.

Have a nice afternoon session.

T.Kamada

If you have questions, feel free to mail them to me.

Â