biggd's sneak peak commercial weekend zoomba, page-77

Hi Hotfire,

I don't have access to intra-day volume. So I can't comment.

Here's a few thoughts about Friday's intra-day action.

First - it was simply a continuation of the uptrend from the previous day.

Secondly - I think the initial jump up and fall back yesterday threw a lot of traders.

That early jump up was not particularly big - such openings often come back to test the par level (the previous day's close).

You then have to watch for a move below the par level. If that happens - the index is probably going lower.

Yesterday didn't do that. It waffled around above the par level forming a base. It broke out of that base around 1.00 pm.

And from then on it was all up.

If you look at a five-day 15 minute XJO chart, a bullish engulfing candle formed on Thursday at 3.00 p.m. The next candle went above the 20 Period Moving Average. The MACD Histogram was already above zero and the RSI was steadily rising (no negative divergences). That was a clear go long signal. The XJO 15-min chart has remained above the 20-Period Moving Average ever since.

There's all sorts of patterns to watch for in short-term trading - but Thursday/Friday action was classic.

No single indicator should be used (e.g., cross above the 20-Period MA). But judicious use of that with other factors can be fairly reliable - use stops.

Hope all that long-winded waffle helps.

Redbacka