Get Better Trading Results With Multiple Confirmations

  • July 23, 2004
  • Tsutae Kamada

It is always important
to get as many signals as you can before committing to a trade.
Multiple confirmations will definitely help you to improve your trading
performance.

10:08:11

Daily Setup Alert

After advancing just below the 38.2% fib level (7/2 high – 7/16 low), Chicago
Mercantile (CME) is beginning to lose its strength. Notice the 50-day EMA is
also blocking the way. CME is trading at 124.70, down 0.45. 

As you can see on the daily chart, CME has been struggling to clear the 50-day
EMA the last few days. Decreasing volume suggests buyers are still hesitating to
make a serious commitment. Maybe this hesitation is caused by the 38.2% Fib
level just above the EMA.

Now, let’s look at the 5-minute chart. After the Daily Setup Alert was
issued, the stock made a pullback to the 38.2% Fib level. Look at the bar. It
has a tail that suggests weakening buying pressure. Also the 20-period EMA and
the stochastic are indicating coming lower prices.

Get multiple signals. They will improve your trading results.

T.Kamada