The Value of Multiple Signals
Today’s performance in the Nasdaq illustrates the value of multiple signals.
Friday and Monday, the Nasdaq
(
$COMPX |
Quote |
Chart |
News |
PowerRating) hit a level that became had
been potential resistance when it broke below the Aug. 3 lows on Oct. 3. This
level also coincided with the 61.8% retracement off the Nasdaq’s Sept. 1 high
and its Oct. 18 low.
That potential resistance became real resistance with Tuesday’s pullback.
A part of every stock traders’ pre-market routine should be to
check the TradingMarkets.com Market Bias page. Look for multiple alerts that are
in agreement with one another. Those tend to be more reliable than individual
alerts. Tuesday we had two CVR alerts with a downside directional bias, the CVR
I, generated on Oct 22 and the CVR II, generated on Oct 23.
These multiple signals all point to the same thing.
Till Wednesday,
Eddie