ACT Looks for a Pop on ADM

Signals of the Day

Welcome one, welcome all! The indexes were rather anemic today, with the S&P 500 and Dow 30 securing small gains while the Nasdaq dropped -0.29%. Crude oil was able to bounce back a bit from last weeks moves, closing up over 1% for the day. Today’s featured signal is a ACT 2.0 signal on ADM.

ADM Buy Signal

Advanced Cycle Trader is calling for the next bullish cycle on ADM.

ACT EOD

ADM is currently testing support close to $41, which also happens to be the bottom of a trading range it has been moving in since early May. It is oversold on both the classic RSI and Adaptive RSI (an ACT 2.0 specialized indicator) and Adaptive Bollinger Bands. All of these indicators are essentially telling us the same thing, thDSPis guy is way too oversold and is likely to get a bump off of support. The last two times this level was tested, back in early May and early June, we saw nice pops both times. If ADM does pick up some steam, it may run back into the $42.50 area, where the 50 SMA is laying in wait.

The strategy that generated this signal is the ACT EOD. This strategy makes up part of the Advanced Cycle Trader 2.0 plug-in. ACT 2.0 is all about finding market cycles, If one can identify a cycle and its low, one could profit by buying at cycle lows and selling at highs. Pretty straight forward. ACT 2.0 is so good at finding these new cycles because it uses Digital Signal Processing (DSP) techniques to accurately identify cycle lows. DSP allows ACT 2.0 has more responsive indicators and systems that are more accurate and less prone to whipsaw moves. ACT even filters which cycles are the strongest and how stable they are. To learn more about ACT 2.0, you can check out its literature here!

DSP Example

BONUS!

And just because we love y’all, here’s a bonus signal!

ADP Buy Signal

WaveTrader is looking for a pop on ADP.

WT3 Long Term

WaveTrader Signals

Recent moves captured by WaveTrader.

ADP has been enjoying a nice resurgence over the past two months after getting clobbered by a poor earnings report earlier this summer. It has recently pulled back to the 50 SMA, which is also acting as support, which it has responded to buy pivoting back in favors of the bulls. It is also close to being oversold, putting it in solid buying territory as far as the RSI is concerned. The MACD indicator is also in bullish territory and the WT indicators (featured on the chart) are looking for the next bullish wave. If that does indeed follow through, we could be looking at a move back into the $104 zone.

The WT3 Long Term strategy is part of the WaveTrader 3.0 plug-in. WT3 is designed for swing traders, seeing as it only seeks out stocks that currently have Higher Lows & Lower Highs. Why just those? Because in Swing Trading, one buys on pull-backs at a Higher Lows and in correcting markets, one would short the first Lower High. WaveTrader is designed specifically to find these Higher Low and Lower High pivots before they finish forming. If you’d like dive deeper (sorry for the pun) on WaveTrader, feel free to do so here.

SignalWatch

The products and demonstrations listed on this website are not recommendations to buy or sell, but rather guidelines to interpreting their respective analysis methods. This information should only be used by investors who are aware of the risks inherent in trading. Nirvana Systems shall have no liability for any investment decisions based on the use of their software, any trading strategies or any information provided through other services such as seminars, webinars, or content included in the SignalWatch website.

About the Author

Ryan has been with Nirvana since 2012 and has been manning the trading desk since Day 1. He was one of the founding members of Nirvana's Trading Lab and also TraderSource.com along with Ryan Olson and Russell Casperson. Ryan logged more than 3,500 hours trading and educating live in the Lab. He is also the lead author of SignalWatch.com. Ryan is a seasoned educator and has conducted numerous educational webinars and is an OmniTrader University instructor. Ryan prefers swing trading and position trading. Outside of the market, Ryan has passions for the outdoors, baseball, exercise, coffee, pop-culture and spending time with his family.

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