From the Desk of Top Market Timer Mark Leibovit

Tutorial on Newfield Exploration.  

In using any indicator it is always useful to spot check its reliability on multiple time frames. While the theory of the Leibovit Volume Reversal is universal (volume precedes and accompanies price), I am always on the lookout for trading opportunities that show good correlation to the indicator.  Newfiled Exploration (NFX) is one situation and it is presented this week. A Leibovit Positive VR was formed on Thursday, February 25 accompanied by a then rising 5/3/3 stochastic and the stock follow-throughed nicely on Friday.We are generally always looking for Positive VRs coming off relative lows and Negative VRs coming off relative highs. Prior, a Leibovit Negative VR formed on February 5 accompanied a declining 5/3/3 stochastic and the result was more than satisfactory. Other examples are show in the video.

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https://youtu.be/53U4lgCcqmk

VR Tutorial for MGM Grand

From the desk of Mark Leibovit:

Last week we took a look and traded (at vrtrader.com) Wynn Resorts (WYNN) and today we're taking a look at MGM Resorts (MGM) also a gaming stock, but one that went in the opposite direction of WYNN late last week. More importantly, however, MGM presents an excellent example of the power of the Leibovit Volume Reversal Indicator which is available here at Metastock

Note the big Leibovit Negative VR on December 30th and the ensuing significant decline.  Note the Leibovit Positive VR on January 5 was not confirmed by a declining 5/3/3/ stochastic and should have been ignored at that time. The Leibovit Positive VR on January 27 resulted in a three day rally, The Leibovit Negative VR on February 2 confirmed a five-day decline - both confirmed by a rising and then declining 5/3/3 stochastic. A Leibovit Positive VR on February 12 triggered a three day rally and the Leibovit Negative VR on February 18 has so far resulted in a two-day decline - again both confirmed a respective rising and then declining 5/3/3 stochastic.  

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https://youtu.be/gXFH9qUtsKk

A WYNNing Trade? from the desk of Mark Leibovit.

WYNN is a $250 stock that declined to $50 and is now forming an important basing pattern encouraged in part by insider buying from its founder Steve Wynn.  The month chart presented herein demonstrates the terrific correlation between the Leibovit Volume Reversal and the collaborative 5/3/3 stochastic.  The daily chart demonstrates the same correlation in the past few weeks and most recent a Leibovit Positive Volume Reversal on Friday confirms the short to near-term uptrend.  Potential in WYNN (on a trade) is in the mid to high 70s) and on intermediate basis to 100 in my view.

https://youtu.be/e5GEAbputYg

METASTOCK LEIBOVIT VOLUME REVERSAL TUTORIAL FOR THE U.S. DOLLAR INDEX ETF - UUP - FEBRUARY 8, 2016

From the desk of Mark Leibovit, 

The U.S. Dollar Index (UUP) displayed here in a weekly format shows a clear negative pattern stretching back to March, 2015 when the first of series of Leibovit Negative Volume Reversals were formed. In fact, since March, 2015 there has not been one Leibovit Positive Volume Reversal. My expectations would be for further downside volatility in the U.S. Dollar Index.  

https://youtu.be/JQKS2-w1qIs

020516 MetaStock - Center Line Price Oscillators NEM chart

Center Line Price Oscillators

The Benefits of a New Type of Price Oscillator

Most Price Oscillators are designed strictly for overbought or oversold conditions. These indicators work well when price is oscillating between a high and low range, but tend to show overbought signals when a stock is about to go momentum. The tendency for these the older style overbought/oversold price oscillators is to show an overbought crossover signal as price begins momentum action, which often causes Technical Traders to exit a trade just before huge profits could have been captured.

By using a Center Line Price Oscillator during momentum phases of price action Technical Traders can hold, instead of selling just as the stock is about to run with strong velocity or momentum action.

The TechniTrader® Center Line Price Oscillator called TTRSI uses a floating center line that provides flexible indicator action as price moves up. It is ideal for momentum and velocity price action as it will reveal the underlying momentum, whereas a standard price high/low range oscillator such as Stochastic shows an exteme overbought pattern that most traders use as an exit signal.

The chart example below shows the TTRSI indicator with center line oscillation in the middle chart window, and Stochastic in the bottom chart window for easy comparison.

This indicator is designed for analysis of price during a momentum or velocity run, and it is superior to Stochastics for momentum analysis.

Traders using Stochastic would have exited prior to the big gain day missing out on the largest one day gain for this run, that continued the next day. RSI then indicates the run has fatigued, and the risk of profit taking at this point means either exit or tighten the intraday stop loss.

Summary

Center Line Price Oscillators are superior to standard overbought/oversold price oscillators during momentum and velocity Market Conditions. Momentum or velocity price action occurs after giant lot Buy Side Institutions have been accumulating a stock for some time by suing Dark Pools.  When Professional Traders and High Frequency Trading firms HFTs discover this accumulation then they drive price upward out of Bottoms, minor Corrections, Platforms, Consolidations, and Compression Patterns.

Using a Center Line Oscillator for price enables Traders to hold longer, and enjoy the gains of a momentum or velocity run.

Trade Wisely,

Martha Stokes CMT

TechniTrader technical analysis using a MetaStock chart, courtesy of Innovative Market Analysis, LLC dba MetaStock

www.TechniTrader.com

Chartered Market Technician

Instructor & Developer of TechniTrader Stock & Option Courses

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Disclaimer: All statements are the opinions of TechniTrader, its instructors and/or employees, and are not to be construed as anything more than an opinion. TechniTrader is not a broker or an investment advisor; it is strictly an educational service. There is risk in trading financial assets and derivatives. Due diligence is required for any investment. It should not be assumed that the methods or techniques presented cannot result in losses. Examples presented are for educational purposes only.

Citigroup Opportunity from the desk of Top Market Timer Mark Leibovit.

From the desk of Top Market Timer Mark Leibovit.  

A positive Leibovit Volume Reversal in Citicorp (C) confirmed by a rising 5/3/3 stochastic is a buy signal in my analysis.  A stop would be kept at 39.44 and a trading target of 45.81 would be set.

https://youtu.be/5VUqtT5Gdno