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Strategies & Market Trends : Playing the QQQQ with Terry and friends.

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To: J.K. who wrote (3115)11/6/2005 9:47:23 PM
From: Walkingshadow  Read Replies (1) of 4814
 
The Ask chart is the ema as you know, so there's bound to be a discrepancy between the ema and sma. I've found that the ema from Ask doesn't match the ema from stockcharts, except in the shorter ones like 10 ema and 20 ema. I suspect that's because they use different smoothing factors in the calculation. That's one reason you can't pinpoint support/resistance to the penny, and I like to talk about a range or region of support and resistance. Besides that, there's a certain amount of background noise that introduces variability. Some people put a lot of weight into very precise support/resistance levels, but I have always been dubious about that sort of thing.

The chart is unquestionably bullish in terms of the long-term trend, and has been for several years now.

The medium-term trend is, if anything, even more bullish.

The thing I am concerned with is the short-term trend, which I believe is bearish, but probably not for long. I am banking on profit taking here, back filling of the gap, and with luck, a bit more momentum downward before the long-term and medium term trends resume and control the short-term trend.

I bet the NASI is pretty bullish about now also, huh?

T
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