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