Stock Market Technical Analysis Update 11/21/2011 (HD)

[demysaid]

Hi Nick, here's a beginners question: how do you arrive at your support, resistance and point of control lines. Is there a precise price or is it just by looking at the chart and just an approximate level where the historical highs and lows more or less hit the same price area. Thanks!

[nickinman2]

@demysaid Good question. It is all developed from volume based upon price. If you use the volume profile indicator, the indicator derives these levels automatically. The value area (blue lines on the charts) is designed to contain 70% of the volume in the composite. The boundaries of the value area (blue lines), tend to be good support & resistance levels, especially on indexes. The point of control being the highest volume traded price level. Incorporating and understanding takes patience tho!

[xydraef333]

Great video...Stock market looks poised for a thanksgiving rally....thanks..

[nickinman2]

@xydraef333 Looks possible! thanks for the support!

[nickinman2]

The market is at potential support. I bought a little bit today but was expecting more from the buyers. Keeping a close eye on tomorrow's economic indicators.