Two Steps To A Successful Trade...
Knowing where chart Support is located is Step-1 to a successful trade.
Determining whether Support will hold or not is Step-2.
Here's how to do it:
The Support & Resistance Report and QuoteTracker:
All of the
Gathering Support and
Gathering Resitance Alerts that are published each evening by the
Support & Resistance Report
can be loaded into the QuoteTracker program in preparation for the next day's trade.
Here is an example of how to use
QuoteTracker...
The Ultra Short Financials ETF (Symbol SKF) fell this morning to its area of
Gathering Support between $128.89 and $128.82.
1) QuoteTracker alerted me with a pop-up window alert as soon as SKF hit $128.89.
2) I then used QuoteTracker to create a 5-Minute Chart (see below).
3) Below the Price Bars is the "CCI Histogram". This is the indicator that I use
to tell whether Support is going to hold or not.
Notice how the red bars of the CCI Histogram
crossed above the thin blue line just before 11:00am. That was the sign that Support was
likely to hold and that a purchase may be ventured.
4) Below the CCI Histogram is another indicator called "Fast Stochastics". A Stochastics reading below 20 is an "oversold" reading.
It was another point in favor of venturing a purchase at Support. The combination of an oversold condition at Support always argues
in favor of Support holding and producing a bounce.
