Most issues include a brilliant color chart that tracks the FNMA, 30-year, bond movement. When appropriate, key components such as upper limit, resistance levels, and lower limit, support levels along with significant moving averages are clearly marked. These upper and lower limits create the channel the bond tends to trade within. A break through of these support or resistance levels can be an indicator of re-pricing from wholesalers. This format of charting called Japanese
Candlestick Charts clearly show the bond's daily trade
levels.
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