For the detailed blog post, please refer here: http://www.syncubate.com/blog/2014/7/16/dust-yourself-off-try-again
This chart on QQQ is an example of framing a trade, such that one has a plan of action ahead of time and is thus not blindsided by entering into a market that is uncharted. Losses often occur when you simply are unaware of what you are trading.
The QQQ , which closed at $95.89 on 7/16/14, is now up over 14% from the mid-April lows.
Interestingly, there are some signs now on the of the trending move in favor of the bulls losing its momentum.
is creeping up as the bears come out of their caves. Also, the line is no longer rising.
Additionally, although we are seeing higher highs in QQQ over the past few weeks of trading, divergence is evident, as is making lower highs.
Support areas are drawn on the chart, reflective of prior breakout points and congestion zones.