John Lansing's Trending123
John Lansing's Trending123
Username: Password: Login
Trade Talk E-Letter Products & Services Trading Tools Portfolios Members Home
risk-free trial

Technical Analysis QQQQ Increase In Volatility
Sunday, February 11, 2007
Weekend Update - QQQQ, & BAP

NASDAQ 100 Shares (QQQQ) - Daily chart- Bullish Continuation Rectangle Pattern or Possible Head and Shoulders Top
The QQQQ's have been range bound in the rectangle since November. This tight range is very frustrating and psychologically draining just because it won't move. Direction would be nice! In addition, the Q's may be forming a possible Head and shoulders top or Reverse symmetrical triangle. However, it is holding the uptrend line, so until it takes that out, the trend is still up. The indicators and oscillators are weakening ever so slightly and showing some bearish divergence. The RSI is showing bearish divergence. The Aroon just had a bearish cross, albeit a weak one. The PPO is holding on by a thread which is keeping us in a bullish trend reversal, but showing bearish divergence non the less. But I am waiting for some price deterioration to show up. Direction remains unclear at this time. Price movement in either direction will bring clarity. At this point the QQQQ's can go up to $46.00 or move down to the 200 EMA at $42.00. Right now the market gets the benefit of the doubt. Stay in sectors that trade independent of the market. I cannot emphasize this enough.

Megaphone Bottom Classic Pattern - BAP Chart

On this update I will discuss and focus on the Megaphone Bottom Pattern. This Bullish pattern is illustrated in the one chart discussed below. "A Megaphone Bottom also known as a Broadening Bottom is considered a bullish signal, indicating that the current downtrend may reverse to form a new uptrend. This rare formation can be recognized by the successively higher highs and lower lows, which form after a downward move. Usually, two higher highs between three lower lows form the pattern, which is completed when prices break above the second higher high and do not fall below it." Please note that this is a much more difficult pattern to trade than a rectangle, that is why I am only using one chart to illustrate how this pattern works, and also because it is the only one that I could find.

Credicorp Ltd. (BAP) - Daily Charts in a Megaphone Bottom Classic Pattern/ Reverse Symmetrical Triangle(RST )- Banking Sector - I just want to show you the progression of BAP and how an RST works. Please look at the progression of the charts below to see this.

The daily chart of BAP illustrates that it has been trading in a broadening type of bottom pattern/ RST. This is a very difficult type of pattern to play. This is because the stock is making higher highs and lower lows in a bullish pattern that is difficult to grasp. This is just the nature of the RST pattern. If you know in advance that this is how the pattern works. Then there is nothing to be afraid of. The most significant aspect of this chart is the bullish divergence that is presenting itself in the price, the PPO and RSI. On the original update I gave specific instructions to buy the backtest of the broken down trend line at the $41.00 area. As you can see on today's chart,BAP is on it's way up to the top of the RST. Today the stock surged up on triple the average volume and placed a new 52 week highs at $50.79. This is bullish because there is no resistance above. It is BAPalicious!

Trading Journal #1
The original Trading journal sheet: http://trending123.com/short-term-trades/trading_journal.htm

2/11/06: A Trader's Daily Affirmation: I foster an attitude of gratitude in my trading plan. I am grateful for the profits that I make and receive from my trades.

Trade and Prosper with Trending123!

Edited by
Andrea Victoria Friend aka Daisy
Editorial Assistant for Trending123.com


Stock Charts
BAP
Stock Charts
BAP
Stock Charts
BAP
Stock Charts
BAP
Stock Charts
BAP
Stock Charts