Analysis
Fri 10/19/18
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 bearish because the fast moving average is below the slow moving average.
Additional Analysis - Short Term: The market is EXTREMELY BEARISH. Everything in this indicator is pointing to lower prices: the fast average is below the slow average; the fast average is on a downward slope from the previous bar; the slow average is on a downward slope from the previous bar; and price is below the fast average and the slow average.
Conventional Interpretation - Long Term: The market is bearish because the fast moving average is below the slow moving average.
Additional Analysis - Long Term: The market is EXTREMELY BEARISH. Everything in this indicator is pointing to lower prices: the fast average is below the slow average; the fast average is on a downward slope from the previous bar; the slow average is on a downward slope from the previous bar; and price is below the fast average and the slow average.
Mov Avg-Exponential Indicator:
Conventional Interpretation: Price is below the moving average so the trend is down.
Additional Analysis: Market trend is DOWN.
Stochastic - Fast Indicator:
Conventional Interpretation: The stochastic is in oversold territory (SlowK is at 11.13; this indicates a possible market rise is coming.
Additional Analysis: The long term trend is DOWN. The short term trend is DOWN. Don't be fooled looking for a bottom here because of this indicator. The stochastic indicator is only good at picking bottoms in a Bull Market (in which we are not). Exit short positions only if some other indicator tells you to.
Stochastic - Slow Indicator:
Conventional Interpretation: The SlowK line crossed below the SlowD line; this indicates a sell signal. The stochastic is in oversold territory (SlowK is at 14.10); this indicates a possible market rise is coming.
Additional Analysis: The long term trend is DOWN. The short term trend is DOWN. Don't be fooled looking for a bottom here because of this indicator. The stochastic indicator is only good at picking bottoms in a Bull Market (in which we are not). Exit short positions only if some other indicator tells you to.
Swing Index Indicator:
Conventional Interpretation: The swing index is most often used to identify bars where the market is likely to change direction. A signal is generated when the swing index crosses zero. No signal has been generated here.
Additional Analysis: No additional interpretation.
Volatility Indicator: Volatility is trending up 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 lower. In general this is bearish.
RSI Indicator:
Conventional Interpretation: RSI is in neutral territory. (RSI is at 35.23). 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 oversold (RSI is at 35.23). However, this by itself isn't a strong enough indication to signal a trade. Look for additional evidence here before getting too bullish 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 rising.
Additional Analysis: The long term trend, based on a 45 bar moving average, is down. A rising ADX indicates that the current trend is healthy and should remain intact. Look for the current downtrending market to continue.
Comm Channel Index Indicator:
Conventional Interpretation: CCI (-99.25) has crossed back into the neutral region, issuing a signal to liquidate short positions and return to the sidelines. The range from -100.00 to 100.00 indicates a neutral market.
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 (-99.25) is bearish, but has begun showing some strength. Begin looking for an attractive point to cover short positions and return to the sidelines.
DMI Indicator:
Conventional Interpretation: DMI+ is less than DMI-, indicating a downward trending market. A signal is generated when DMI+ crosses DMI-.
Additional Analysis: DMI is in bearish territory.
MACD Indicator:
Conventional Interpretation: MACD is in bearish 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 DOWN. MACD is in bearish territory. However, the recent upturn in the MacdMA may indicate a short term rally within the next few bars.
Momentum Indicator:
Conventional Interpretation: Momentum (-140.20) is below zero, indicating an oversold 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 DOWN. Momentum is indicating an oversold market and appears to be slowing, suggesting some strength. A modest upturn is possible 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 (-4.82) is below zero, indicating an oversold 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 DOWN. Rate of Change is indicating an oversold market and appears to be slowing, suggesting some strength. A modest upturn is possible 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. | 
