Momentum Indicator Time
Well, last time we met the Qs
were approaching intraday and recent daily lows. Fast
forward to midday and Q oscillations since then have netted a grand total of
zero as we’re again testing yesterday’s low-of-day line in the sand. Of course,
any time we’re testing recent lows, regardless of time frame, I once again turn
to momentum indicators — in this case the hourly stochastics — to help gauge
the strength (or lack thereof) of the selling and to see if there is sufficient
momentum waning which might lay a foundation for a trend change.
The
(
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PowerRating), which began the day in the
green despite early Nasdaq red, has joined the broader markets in the red. As this
column goes to press, the Qs are bouncing slightly in what has been a low-volume
illiquid late-morning trade, yet I would view a change in the 13-minute trend as
a prerequisite for any longer-term climb out of the current abyss.
11:45 P.M. ET
Continued thanks for
the mail in response to Friday’s
column, as well as the strong response and feedback for the QQQ
school. It seems that the idea of simulated trading with someone looking
over your shoulder, in a virtual sense has struck a pleasant nerve, and I’m glad
to be a part of it.
“Let me add my
congrats on Friday’s column. I printed and saved it as I do many with an extra
message.
I have been looking on
the Internet, library and book store. I see virtually no reference to using
multiple time frames to guide your trading. It makes so much sense and makes the
trading easier. It is amazing that it is not spoken of more.” D.M.
Good Trading!