A quick ALV short sell & NASDAQ Index charts
In the chart below from 3:45pm on 8/24, we see that an automated potential short sell alert has been issued for Autoliv Inc (ALV).
The alert is of type 7 which means it is the of the fastest turnaround time. From the last two digits of the alert number "05" we understand that the average trade duration for this automated strategy for ALV is 0.5 trading days. Also from the alert itself we can see that the Trade Ratio is a high 3.3 and average profit is 1.6%.
For refreshing or learning more about the meaning of alert digits, visit this blog entry
From the title of the bottom right chart, we see that the price is $52.60
Let us examine the chart to see what triggered the alert.
From the top left panel, we see that the trigger comes from the fast oscillators turning down. They have an amplitude of of over half a percentage, so the gain would be over 1%.
For the safety of taking the trade, let us examine the mid and slow oscillators. In the top left panel, we see that the Violet, which is the greater component of the Pink has turned down. This offers immediate support of the fast oscillators.
Also note that, the Black oscillator is still moving down. From the bottom right panel, we can see that the slow Blue oscillator hasn't yet turned.
The exit alert for this trading opportunity came in the next day (8/25) at 10:45 am. Notice how the fast oscillators have finished their downward cycle, fully supported by the Violet and Black. The exit price as seen below is $51.60
So for that trade, we were in the market for 2.5 hours and the profit was 1.9%!
Here are the NASDAQ Composite Index Charts. First, in the end-of-day charts based on the daily closing prices alone, we can see that the fast oscillators are turning around. The Black and Pink are headed for a crossing point, but it looks like a weak crossing point close to the zero line. Remember that crossing points are stronger in determining direction change, the farther away they occur from the zero line.
And here is the intraday chart as of 11am today (8/26). We can see how the market behaved precisely according to the movement of the Pink and Black oscillators. You can see yesterday's charts here Now you can make predictions for the rest of the day and tomorrow's open from the chart below
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