It is nice when more than one technical indicator is present in a stock.
It is not unusual for a stock to have conflicting signals. This is
especially true with multiple time frames.
We are using a 60-minute bars in our short term trading
Each day, I use 4 major indicators to help with education and stock
selection.
They are Moving Average Crossovers, MACD, Momentum, and On Balance Volume
(OBV).
Let's look at Tollgrade Communications (NASDAQ:
TLGD).
Just a couple of weeks ago on July 13, TLGD hit 168. Over the next two
weeks, TLGD was trashed down to low of 78 5/8 on August 3.
In this column each day we look at MACD, Moving Averages, Channel Breakouts,
Momentum and pattern recognition. TLGD now confirmed just about every
one of these Buy signals on Friday.
TLGD is a Buy.
I spent some time looking at the chart and found some other interesting
technical patterns and indicators that also confirmed a Buy here.
I looked at a daily and did a Fibonacci retracement on a daily from the low
of April 13, 2000 of 31 � to the high of 168 7/8 on July 13. I found just
about a 62% retracement of that move to the support low.
I also looked at a daily and a volume climax that is usually seen at market
tops and bottoms occurred on August 1.
There is no guarantee that any trade will ever work out. As a trader, we
are dealing in probabilities with sound risk management techniques.
The probabilities look good here with many confirming indicators.
I would Buy TLGD here.
I would place a stop at 94 �.
