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Mass Index

DELL pushes price with a big earnings beat LONGDELL reported earnings 27% beyond the estimates and traders reacted. The indicators show that relative volume was about 10X the running moving average. The RSI dual time frame indicator ( by Chris Moody) showed a 50-level cross-over on 2/22 one week before earnings. That was the best early entry and price is up 20% higher since then. The question is whether is is overextending and so will retrace. The mass index indicator is suggestive of a reversal. Overall, I will watch price action for bullish continuation while considering the possibility of a short sell into a retracement if it evolves. No matter volatility is increased I intend to make the best possible trade in response to what develops.
NYSE:DELLLong
by AwesomeAvani
AMC can price rise from the all-time low ? LONGOn this 15 minute chart I see support for upside on AMC now at its all time lows. My target is recent tweezer tops at 4.27 with a stop loss set at 3.93. Any price rise at all will likely start short seller's buying to cover and close to be added to new long buyers supporting a move higher. The dual TF RSI indicator shows a bottom at the all time low and bullish divergence compared with the price action which is sideways for the moment. The Mass Index indicator with a rise then fall over the threshold and trigger levels has signaled a reversal. I will take a long trade of both long shares and a call option. An alternative to hedge is long shares and put options at a ratio of 100:1 with the puts as cheap " insurance". If a short squeeze ( ? moonshot) ensues, the put option will stop out or get crushed to a complete loss of no consequence in the greater overall trade. DISCLAIMER Any long trade from an all-time bottom is extremely risky- only trade cash that you can afford to burn and not feel bad about it.
NYSE:AMCLong
by AwesomeAvani
1
Can NFLX trend higher ? LONGIn its past NFLX got through the Covid downturn with only a 10% correction, then went through a rise into a year of consolidation and finally another big trend up which reversed badly in Winter 2021. After a business model adaption and modification of subscriptions and password/account sharing protections, price has made great gains. On the weekly chart, a trend upward has been in place since July 2022. On the weekly chart, bigger ranged candles have been put in for two weeks. It seems that from here, while NFLX could rise heading toward a new all time high. On the other hand, just as it did in 2020 at a similar price level ( marked as # 1 and an oval around the price action), it could get range bound or consolidated ( # 2 marking the present.) The mass index indicator gives a hint that the trend will continue and not reverse. It is fluctuating in a mid-range without a hint of rising into the threshold and trigger zones. Notably in the 2021 downturn, the RSI and MACD ZL) signaled the reversal before the mass index. Those two indicators in the present show no hint of bearish divergence so far. Accordingly, for the time being, NFLX continues to be a long trade with 20% upside into the level of the all-time high ( discounting any effects of inflation and dollar devaluation in any of this which is very important overall but generally ignored).
NASDAQ:NFLXLong
by AwesomeAvani
BOIL rises into reversal territory SHORTBOIL as a triple leveraged ETF of natural gas futures- has high volatility which can translated to high profits for traders who can accurately harness that energy .On the 2H chart in the time since the reverse split, the price has mostly ranged up and down between the first upper and lower VWAP lines of the VWAP anchored to the high in May. Occasionally it has ranged outside those bounds and then reverts to the mean VWAP. Price is presently at or near the first upper derivation line where it typically pivots down. The zero lag MACD is suggestive of an impending pivot down before any signs of it and thus showing bearish divergence. The mass index is not yet suggesting a reversal. The shorter HMA 56 rising significantly above the HMA210 is suggestive of overextension into the overbought overvalued zones of the chart. Overall, I will put BOIL on watch. Once a reversal is confirmed I will either short BOIL or long KOLD. Leveraged funds being what they are and mathematics fixed and hard, shorting a levearged ETF is a faster fall than its rise so the short position will be my first choice.
AMEX:BOILShort
by AwesomeAvani
10
Is NVDA overpriced relative to GOLD?My thesis is that comparing an equity price in a ratio to spot gold expecially on long time frames can sometimes bring clarity to complicated trading decisions. Here, I seek to determine since I hold both gold on the forex market and NVDA call options, whether I should sell one to buy the other. Upon putting the ratio of NVDA price compared with spot gold on a weekly chart I have discovered that NVDA has ran up considerably over the past 5-6 years into an obvious all time high. This is not a surprise given NVDA's position as a subsector leader and a frontrunner on the AI revolution. The last golden cross of the pair of HMAs was this past March. Relative strength of the ratio is nearly 80. Importantly, the mass index is about to trigger a reversal. Overall, because of this analysis, I will dollar cost average out of the NVDA call options closing them at weekly highs over the next month. With the proceeds, I will increase my spot gold position and look into call options on one of the gold ETFs.
NASDAQ:NVDAShort
by AwesomeAvani
BULZ - Technology ETF ( AI revolution )LONGBULZ is a 3X leveraged version of the Cathie Wood ETFs. As shows on the 2H chart BULZ broke out of the fair value channel of the anchored VWAP bands in bullish momentum Not a coincidence. In three months it has gained over 110% or 35% per month compounded. The MACD indicator shows the lines peaking over the histogram a cross of them is pending. The mass index indicator shows a signal into the reversal zone and falling as if about to trigger. This is a VWAP breakout at its best. It jumped 7 % in one day and now needs a pullback reset. My trading plan is simple. I will watch for a pullback to the blue line one standard deviation above the mean VWAP. I expect a bounce off that dynamic support. The trade will be a long-duration one until the technology sector cools off. Any future pullbacks to the blue VWAP will have an incremental add to the position. Any pops in price over the second VWAP line above the mean ( a line not visible here) will be used to signal a sell of a portion of the position. All in all, this will compound realized profits while underway.
AMEX:BULZLong
by AwesomeAvani
AMZN a long reversal tradeAMZN on the 30 minute chart has descended from a double top / head and shoulders pattern in early to mid July and is now set up in the lowest VWAP bands in oversold undervalued territory. The RSI shows lines bounced from the lowest green line set at 20. the low time frame blue- 5 minute line has crossed above the higher 60 minute black line time frame and they are both above the 50 level demonstrating bullish momentum in the early reversal. The mass index indicator crossed above the reversal zone and then down triggering the signal. I will take a long trade on AMZN seeking to profit from this reversal with about 8% near term upside. The trading plan's targets are in the text boxes on the chart.
NASDAQ:AMZNLong
by AwesomeAvani
1
Can CMG recover from the post earnings drop?CMG had earnings today which were a beat but apparently less than expectations of investors and traders. On the 15-minute chart, the indicators support a reversal with a bounce on the dual time frame RS lines showing a bit of bullish divergence. Decelerating bearish momentum on the MACD with lines converging under the histogram suggests a reversal is impending. Further, the mass index indicator is in the reversal zone but not yet triggering the signal with a drop below the zone. I will take a long trade of CMG. They say trade what you know, My local CMG is always buzy and a love either food. I believe that CMG is ready to give me a big rebate on my patronage. I will take a call option expiring 8/18 striking $2100. I expect to realize a large profit having done a similar trade on CMG more than once in the past. The expected premium of $7300 will be about $700 of risk given a stop =loss but I expect a reward of 4-6 times that if not more.
NYSE:CMGLong
by AwesomeAvani
NFLX builds more momentum LONG for nowNFLX has been trending up for three weeks. If the trend is getting old it is now showing. Based on a set of two anchored VWAP bands originating June 1 and June 15, Netflix is breaking through VWAP bands from the lower -2 standard deviation lines to the +2 standard deviation lines and nearly the third upper deviation lines. This is a clear and convincing VWAP breakout with buyers in overwhelming control Trading volume today is about 4 or 5 times the running average and about 1M. Volume support for price action is obvious. The dual time frame RSI shows 1 hr TF RSI (blue line) shot up crossed over the daily TF RSI (black line) and is retreating a bit. The daily RS is below 80 and still trending up. The MACD shows a classical bullish momentum pattern with the lines well above the histograms. Overall NFLX has the risk of overextension and possible topping with a fade afterwards. The mass index indicator shows a value into the reversal zone but until the value rises and the drops to 26.5, the trend is still intact. I will take a long trade here, hoping for a quick 5% ROI between now and the end of the week and about 50% on an options trade with a strike of $500 expiring July 28th which I will close upon a confirmed reversal and use the profits realized therefrom to buy a put option to take a ride down.
NASDAQ:NFLXLong
by AwesomeAvani
1
FRGE-setup for bullish continuation from a pullback LONGFRGE hin the past couple of trading days has had a 20% pullback consistent with a 50% Fib retracement of the prior trend up which occurred over 2 weeks. Bullish divergence on the two time frame RSI indicator where the lower TF RSI bounced up from the 20 level in oversold territory suggests a reversal is impending. So does the mass index indicator with a value in the reversal zone awaiting a trigger with a drop below 26.5. The range of the HA candles have suddenly decreased and the color red to green. I will take pullback going long trade here expecting a quick 10-20% profit while targeting 2.88 just below the POC line of the visible range volume profile. The volume void from 2.6 to 2.8 should allow for quick upward price action as the void needs to be filled.
NYSE:FRGELong
by AwesomeAvani
NRP ( Energy Stock) Reversal PatternNRP is an energy stock. Shown on a 15-minute chart it appears to have a reversal pattern. The mass index indicator's value has risen above 27 and is about to trigger with a fall under 26.5. The normalized MACD shows a cross of the MACD and signal line well below the zero line. The 28 period linear regression line has given a buy signal below the last candle. Importantly, the analysis of the HA candles is they have changed from red to green and the indecision candles with large wicks compared with the candle body have ended in favor of a larger bodied green candle without predominant large wicks. I will look for a long entry on the 3 to 5 minute time frame expectant for a target at the POC line of the volume profile or about 50 which would be a decent profit for this low risk trade.
NYSE:NRPLong
by AwesomeAvani
Is COIN okay now?COIN is in a bit of a controversy with the SEC and potential regulatory charges. On the 4H chart it had a big plunge from the high market valuation it received over the month since favorable earnings. It has reversed after a few days of Doji candles showing market indecision. The MACD indicator shows upwards K/D lines having crossed under the histogram on the day before this idea. The mass index indicator has given a reversal signal since the value first crossed above 27 and then triggering by crossing under 26.5. Having reversed, can COIN maintain the current trend ? I will find out by taking a long trade with potential 15% upside essentially betting that the dust will settle and it will be business as usual with demonstrated increasing revenues on the recent earnings report.
NASDAQ:COINLong
by AwesomeAvani
AUDJPY is impending reversal SHORTOn the one-hour chart, AUDJPY is in the area of overhead resistance and the supply zone. Both the zero-lag MACD is showing bearish divergence. The mass index indicator has already given a reversal signal where mathematically the indicator goes over 27 and then triggers when it crosses down on 26.5 This indicator often misses a reversal but seldomly generates false signals. Japan has had rock-solid central bank actions and policies perhaps propping up the currency value in comparison with others including the Australian dollar. Overall, I have high confidence in a short leveraged forex trade of the pair at this time. The stop loss is just above the red supply zone while the target is just above the POC line of the volume profile yielding a trade with a reward for risk of over 20.
Short
by AwesomeAvani
XAGUSD Spot Silver - Is it ready to reverse up?Spot Silver dropped this past week about 6.5 % from its high early in the week. On the 15-minute chart the drop occurred over three days. XAUUSD is now underneath the POC line of the volume profile as well as the negative bands of the mean anchored VWAP. The Mass Indicator and faster / slower MA ratio indicator are both near the zero line showing that bearish momentum has subsided and a reversal may be underway. Overall, I expect a reversal with XAGUSD seeking the mean. The first target is the POC line confluent with VWAP so 25.08 while the final target is 25.55 being the redline demarcating the top of the high volume area. I expect this to be a 1-2 day trade with high potential reward especially if leveraged on forex.
OANDA:XAGUSDLong
by AwesomeAvani
KR SHORT IDEANYSE:KR KR made a big move this week after the Q2 earnings call. I believe that it is now overextended. On the 15-minute chart, the big price action is seen. However, the RSI indicator shows a flat relative strength suggestive of bearish divergence. The Mass Index peaked out over 27.5 and is now dropped below is the suggested trigger for a reversal of 26.5 Trading volume is about 250% of the average on Friday overall while concentrated on the early morning rapid trend reversal and late afternoon profit taking. I will look to capitalize on a quick downtrend correction with a put option with 5DTE below the current market price for maximal return albeit with the added risk of time decay.
NYSE:KRShort
by AwesomeAvani
1
GBPUSD 1H MASS INDEX TRADING STRATEGYFind Mass Index Indicator in TradingView under Public Library - Mass Index/HPotter Add to chart Stochastic Indicator default settings Mass Index Trend Reversal Strategy Mass index trend reversal is a powerful strategy to detect trend changes. You can find money-making trading opportunities that evade most traders. We use two forex reversal indicators to develop this reversal trading strategy: The obvious mass index tool Stochastic indicator used to determine the directional signal. Both of these forex reversal indicators will protect you from false reversal signals. As we already mentioned we use the trend reversal trading strategy in combination with the price. The secret to trading trend reversal like a professional trader is to combine the price with other technical tools. That’s exactly what we try to accomplish here. As this will help you spot high probability bullish and bearish trend reversal signals. Now you’re wondering: “How do I combine all these pieces together to actually identify trend reversal trading setups that work?” Knowing what indicators to use and what is the Best Combination of Technical Indicators can dramatically improve your chart reading skills. If you use the wrong technical indicators, this can lead to inaccurate price interpretation and subsequently to bad trading decisions. The mass index trend reversal strategy can be broken down into a three-step process: Identify the reversal bulge on the mass index indicator. Identify the prevailing trend prior to the reversal bulge. Use the Stochastic indicator to generate a directional signal. Here is how to actually do it: Step #1 Identify the Prevailing Trend Always zoom out to have a clear picture of what is the prevailing trend. The previous GBP?USD chart zoomed out revealed that the prevailing trend is bearish. Naturally, we assume that a bullish reversal signal will follow. The trading bias is upwards once we correlated the mass index reading with the price action. Generally, we also want to confirm that the price is expanding and that we’re indeed in the last stage of a trend. This information is revealed in the price chart. We simply compare the most recent candlestick bars with the previous ones. Are the candlesticks expanding? If yes, that’s what we need to see. The bigger the candles are, the higher the change that a bigger trend reversal is going to develop. Step #2 Identify the reversal Bulge The mass index reversal bulge was already revealed at the beginning of this trend reversal guide. The mass index must first go above the 27 level and then it needs to be followed by a drop back below the 26.5 level. There is a high degree that the market will reverse from here. That’s pretty much it. There is nothing we can add here as everything else comes down to the relationship between the price and the mass index reading. So far, so good. Huston, we have a problem. The mass index indicator is prone to also produce large moves by the time the mass index line it takes to drop back below the 26.5 level. This can create the false illusion of a trend. But, in reality this can be a simple trend pullback. We’re going to teach you another great trick to use to capture trend retracements and pullbacks using the mass index. Let me explain… A picture is worth a thousand words. In this case, we’re effectively trend trading. See below the last step before pulling the trigger: Step #3 Use the Stochastic for Trigger We have established our trading bias and we have a mass index bullish reversal signal. Next, is to wait for the stochastic indicator to provide us with a bullish signal to trigger our long trade. The classical stochastic crossover is the most popular crossover trade signal. The stochastic bullish crossover occurs right after the mass index dropped below the 26.5 level. This is our signal that the momentum has shifted to the upside and the trend is ready to reverse. So, you can go ahead and deploy your soldiers aka the money to capture more soldiers. There are always going to be pros and cons between reversal trading vs. trend trading. But what type of trader should you become? Should you be a Reversal Trader or Trend Trader? Each trading style has its own merits and proper use. While trend trading gives you the advantage of trading in the direction of the prevailing momentum, reversal trading gives you the advantage to buy low, sell high. But, if you don’t know what is your trading style, the chance of succeeding as a reversal trader or as a trend trader is very slim. If you’re searching for a trend following strategy that will turn your trading around make sure you check the MACD Trend Following Strategy. You need to develop your strategy to accommodate reversal trading if you want to catch tops and bottoms. There is no right or wrong between trend trading vs. reversal trading. The short answer is that you should be trading in a way to fit your own personality. While the trend is your friend, not many have the discipline to stay in a trade riding a trend. The fact is reversal trading can be a quick way to make some profits. The advantage of reversal trading is that you can be in and out of the trade very fast. Learn more about how to identify a Forex trend: Identifying Trends through Synchronization. Final Words – Mass Index Chart The Mass index indicator allows traders to predict trend reversals that other technical indicators may fail to notice. Using the mass index reversal bulge you can catch market tops and bottoms with deadly accuracy. You don’t have to be scared to try catching a falling knife. Most prominent hedge fund managers engage in reversal trading because it provides trade setups with high risk to reward ratios. You can always keep a mass index chart on the sideline to check if your favorite market is about to end a big trend cycle. The secret to trading trend reversal like a pro is to simply stop being scared of engaging in this type of trade activity. Just make sure you use wise risk management strategies before you put at work your hard-earned money. PM me if you want the link to the actual complete mass index strategy
Long
by Tradingstrategyguides