Analysis
Mon 7/24/17
Bollinger Bands Indicator:
Conventional Interpretation: The Bollinger Bands are indicating an oversold condition. An oversold reading occurs when the close is nearer to the bottom band than the top band.
Additional Analysis: Volatility appears to be declining, as evidenced by a decreasing distance between the upper and lower bands over the last few bars. The market is in oversold territory.
Mov Avg 3 lines Indicator:
Note: In evaluating the short term, plot1 represents the fast moving average, and plot2 is the slow moving average. For the longer term analysis, plot2 is the fast moving average and plot3 is the slow moving average
Conventional Interpretation - Short Term: The market is bullish because the fast moving average is above the slow moving average.
Additional Analysis - Short Term: Recently the market has been extremely bullish, however currently the market has lost a some of its bullishness due to the following: the fast moving average slope is down from the previous bar, price is below the fast moving average, price is below the slow moving average. Its possible that we may see a market pullback here. if so, the pullback might turn out to be a good buying opportunity.
Conventional Interpretation - Long Term: The market is bullish because the fast moving average is above the slow moving average.
Additional Analysis - Long Term: Recently the market has been extremely bullish, however currently the market has lost a some of its bullishness due to the following: price is below the fast moving average. Its possible that we may see a market pullback here. if so, the pullback might turn out to be a good buying opportunity.
Mov Avg-Exponential Indicator:
Conventional Interpretation: Price is above the moving average so the trend is up.
Additional Analysis: CAUTION: The market trend has changed direction. Now the trend is UP!
Stochastic - Fast Indicator:
Conventional Interpretation: The stochastic is bearish because the SlowK line is below the SlowD line.
Additional Analysis: The long term trend is DOWN. A good downward move is possible without SlowK being oversold. However, an upmove in SlowK for this bar is a little concerning short term.
Stochastic - Slow Indicator:
Conventional Interpretation: The stochastic is bearish because the SlowK line is below the SlowD line.
Additional Analysis: The long term trend is DOWN. The short term trend is DOWN. SlowK was down this bar for the second bar in a row. We may have seen the top of the up move for a while. The market looks weak both long term and short term. The SlowK is at (66.63). A good downward move is possible without SlowK being oversold.
Swing Index Indicator:
Conventional Interpretation: The swing index has crossed zero, identifying this bar as a short term pivot point.
Additional Analysis: No additional interpretation.
Volatility Indicator: Volatility is in a downtrend based on a 9 bar moving average.
Volume Indicator:
Conventional Interpretation: No indications for volume.
Additional Analysis: The long term market trend, based on a 45 bar moving average, is DOWN. The short term market trend, based on a 5 bar moving average, is DOWN. Volume is trending higher, allowing for a pick up in volatility.
RSI Indicator:
Conventional Interpretation: RSI is in neutral territory. (RSI is at 51.31). This indicator issues buy signals when the RSI line dips below the bottom line into the oversold zone; a sell signal is generated when the RSI rises above the top line into the overbought zone.
Additional Analysis: RSI is somewhat overbought (RSI is at 51.31). However, this by itself isn't a strong enough indication to signal a trade. Look for additional evidence before getting too bearish here.
ADX Indicator:
Conventional Interpretation: ADX measures the strength of the prevailing trend. A rising ADX indicates a strong underlying trend while a falling ADX suggests a weakening trend which is subject to reversal. Currently the ADX is falling.
Additional Analysis: The long term trend, based on a 45 bar moving average, is down. A falling ADX indicates that the current trend is weakening and may possibly reverse. Look for a choppy market ahead.
Comm Channel Index Indicator:
Conventional Interpretation: CCI (47.72) is in neutral territory. A signal is generated only when the CCI crosses above or below the neutral center region.
Additional Analysis: CCI often misses the early part of a new move because of the large amount of time spent out of the market in the neutral region. Initiating signals when CCI crosses zero, rather than waiting for CCI to cross out of the neutral region can often help overcome this. Given this interpretation, CCI (47.72) is currently long. The current long position position will be reversed when the CCI crosses below zero.
DMI Indicator:
Conventional Interpretation: DMI signals a bullish trade when the DMI+ crosses above the DMI-, as it has here.
Additional Analysis: DMI has signaled a bullish trade. However, the ADX has weakened making this trade less attractive. Look for outside confirmation before taking a bullish position here, or wait for an upturn in ADX.
MACD Indicator:
Conventional Interpretation: MACD is in bullish territory, but has not issued a signal here. MACD generates a signal when the FastMA crosses above or below the SlowMA.
Additional Analysis: The long term trend, based on a 45 bar moving average, is DOWN. The short term trend, based on a 9 bar moving average, is UP. MACD is in bullish territory. However, the recent downturn in the MacdMA may indicate a short term decline within the next few bars.
Momentum Indicator:
Conventional Interpretation: Momentum (1.74) is above zero, indicating an overbought market.
Additional Analysis: The long term trend, based on a 45 bar moving average, is DOWN. The short term trend, based on a 9 bar moving average, is UP. Momentum is indicating an overbought market. However the market may continue to become more overbought. Look for some evidenced weakness before getting too bearish here.
Open Interest Indicator: Open Interest is trending up based on a 9 bar moving average. This is normal as delivery approaches and indicates increased liquidity.
Rate of change Indicator:
Conventional Interpretation: Rate of Change (3.90) is above zero, indicating an overbought market.
Additional Analysis: The long term trend, based on a 45 bar moving average, is DOWN. The short term trend, based on a 9 bar moving average, is UP. Rate of Change is indicating an overbought market. However the market may continue to become more overbought. Look for some evidenced weakness before closing long positions here.
Important: This commentary is designed solely as a training tool for the understanding of technical analysis of the financial markets. It is not designed to provide any investment or other professional advice. | 
