TNA Hourly 01/27/2012

Attached is the hourly graph of TNA over the last couple of months. You can observe the trendline breakout and retest (blue line), and the working sideways through the resistance levels (red lines). There are two linear regression channels shown (black lines), the longer-term one in heavier lines, the one since breakout in the lighter lines. The price is now following the shorter-term linear regression channel across the width of the longer term one.

The Measure Rule target is shown at 61 just as in the daily graph. Please, recall the Measure Rule is achieved 85% of the time (which also means it fails 15%). A Measure Rule also exists for breaking down or bearish breakouts, but those targets are only achieved 63% of the time).

Please, note every few days the price reaches the lower, short-term channel boundary--and also touches to lower Bollinger band simultaneously. These are good points to enter a trade if one doesn't already have a position or wishes to add to that position. As I pointed out previously, these lows usually occur between 0930 and 1030 in the mornings, and on the hourly graph, this shows. This morning's low did not reach the short-term channel boundary, but reacted to the center line of the longer-term regression channel. It also reached the lower Bollinger band at the same time. Please, note the price has reacted to the center longer-term regression line on several occasions, indicating the line's validity. .

Stochastics also indicate those turns when a position can/should be taken.

Finally, should the Measure Rule price objective be realized, it should come next week. The daily graph indicates earlier in the week than this hourly graph.

I have yet to add new resistance lines since the break above 49. I should, and if you will mentally do so, you will see that the lows providing new entry points usually are support levels from the highs a few days previously. These, combined with the channels, Bollinger bands, and stochastics, provide a further indication of the low point being reached--and show where that point will probably be a day or three ahead of it being reached.

I have noted the overnight gaps are now less evident. I am not sure what the explanation of or for that is, but I welcome their disappearance. They made me nervous and I was having to guess where they would eb the next morning rather than, as now, being able to enter the trade in the first hour of the day.

I am glad you are finding these helpful.