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- Signals of the Day – 3.14.17
Signals of the Day – 3.14.17
SW Trades of the Day
The market lost a bit of steam today, as all three of the major indexes closed with small losses. So far that has been a quiet week with most investors and traders hanging out of the market until the word about a possible interest rate hike comes out from the Fed’s meeting. The market mode is still very bullish, though, so we will once again focus on the newly generated buy signals.
Darvas Classic Strategy
COF has been in rally mode since the election jump-started the market. It enjoyed a very strong February before spending the vast majority of this month in a pullback. That’s not a bad thing, though, seeing as we need to identify new higher lows on bullish trends to trade them successfully. And that is exactly what COF is offering up.
COF has pulled back to $91.75, which is also support and a bullish pivot point for a short term trend. It is well above the major moving averages and it is oversold on the RSI indicator. All of these factors make it a prime candidate for a bullish trend trade. If this guy kicks back into gear and turns northwards, it’ll be back in the mid-high $90’s before long.
This signal was fired by one of our Darvas Box plug-in’s strategies, the Darvas Classic Strategy. So, how does the Darvas Classic strategy work? It all starts with the man himself. Nicolas Darvas was not a professional trader (he was actually a pro dancer), yet he made himself a multi-millionaire through his unique trading approach, known as the Darvas Box. By establishing a “box” around price, Darvas could not only determine optimum entry and exit points but also assess his risk. And do so before entering the trade.
So, we went out and automated (because automation is kind of our thing) the Darvas Box process. Working within the Darvas Box method, we threw in a set of indicators, Trading Systems, and Strategies, which are all valuable additions to OmniTrader.
The Darvas Box Classic Strategy implements the well-known Darvas Box approach to trading, while our Darvas Box Nirvana and Darvas Box Classic Support/Resistance strategies are variations on Darvas’ original method.
WaveTrader likes PFE for some renewed bullish activity.
PFE has enjoyed a great bullish streak since its reversal began back in January. It recently pulled back to test support and the 200 SMA just below $34, and it responded by pivoting back to the upside and forming a higher low. It is now testing the monthly VWAP indicator and if it pushes through VWAP, we could see it heading back up towards $35 in no-time.
The strategy that produced this signal is the WaveTrader 3 Short Term Strategy. WaveTrader 3 actively seeks out higher lows & lower highs. WaveTrader 3 predict pivots so you see them form on the right edge, giving you better entries. We call these pivots Wave Pivots. If you love swing trading, this is the plug-in for you. If you’d like to know more, check out its PDF.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable.
About the Author Ryan Belknap
Ryan has been with Nirvana since 2012 and has been manning the trading desk since Day 1. He was one of the founding members of Nirvana's Trading Lab and also TraderSource.com along with Ryan Olson and Russell Casperson. Ryan logged more than 3,500 hours trading and educating live in the Lab. He is also the lead author of SignalWatch.com. Ryan is a seasoned educator and has conducted numerous educational webinars and is an OmniTrader University instructor. Ryan prefers swing trading and position trading. Outside of the market, Ryan has passions for the outdoors, baseball, exercise, coffee, pop-culture and spending time with his family.