QLD
Trend is down with a Bear Zone.
Look for a dark candle in the
Bear Zone and prepare to sell 1%
under the key dark candle.
The QLD hit a low in Nov. and is in a sloppy inverse Head -and-Shoulder pattern. The Nasdaq is attempting to end the multi-bear market trend. Only if the trend line can turn and price can move higher than the key turn day will the downtrend end.
The QLD is in a bearish downtrend. Therefore a bearish zone is created between the two moving average lines. Look for any dark candle body between the two bearish lines. This will be the key bear candle. Drop 1% below the wick low of this candle and enter a trade to short or buy puts on the QLD at the indicated price.
ReplyDeleteQLD is Bearish if you use the 60MA as a trend measure. If you use the 20MA, it is turned up. So, doesn't your trend indicator depend on what MA you use?
ReplyDeleteRick,
ReplyDeleteIt is true that the trend is only defined by which moving average (if a moving average is used)the trader selects. A 20 day, 40 day, 50, 60, or even 120 moving average with give different readings. On the daily chart, my choise would be the 30 day or the 60 day to find the intermediate trends for the index.