Reinforced Reversal Signal for MRK

September 28

Good afternoon folks! Today we are going to change things up a bit, and instead of looking at a brand-new signal, we are going to take a look at a reinforced signal. A reinforced reversal signal to be exact. The strategy that we are going to be using is the default OmniTrader 2017 Reversal Strategy, so each and every one of you OT owners can go check out this signal on your own! Let’s take a look.

Merck Reversal Signal

A reinforced reversal signal on Merck looks very interesting.

OmniTrader 2017 Reversal Strategy

As we can see, MRK has been bouncing around a trading range since the latter half of Q1, with the upper boundary holding firm at $66 and the lower boundary right around $62. It has also interestingly enough, used the $64 zone as both a minor support and resistance level within this range several times in the last few months, which is where we find MRK now. $64 is acting as support at the moment and it is has a nice confluence with the 50 SMA, making it a prime spot for a bullish pivot.

The RSI indicator shows MRK to be right at the 50 rating, making it right in the middle of being overbought and oversold. The Relative Momentum indicator is starting to flatten out, but it is in positive territory, giving us more bullish confirmation.

What this strategy is looking for are small pullbacks within a larger trend. It finds these moves and fires signals based on the reversion to mean method, which states that markets trend roughly 80% of the time. The reinforced signal differs from a new signal because it meets even more of the strategy’s criteria after it has been fired. These usually make for much more confirmed and accurate trades.

The great thing about this strategy is that each and every one of you who owns OT already has it. Just switch to the default reversal strategy and let it run. Easy as pie.

If you don’t have OT, check it out here!

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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