When the "oscillator" crosses the 5-d MA, this has given a fairly reliable buy or sell reversal signal... maybe not on the day, but pretty close. I'm kinda new to the freestockcharts.com, so I haven't figured out how to superimpose the SPY yet, but these inflection points do come right at intermnediate-term reversals.
Wednesday, August 12, 2009
Eric and Traderfeed's 2123
Always looking for the Holy Grail of buy-sell indicators. Eric was viewing Traderfeed's 2123 4-week hi/lo indicator as an oscillator. Just playing with the chart, I added a 5-day MA to this.
When the "oscillator" crosses the 5-d MA, this has given a fairly reliable buy or sell reversal signal... maybe not on the day, but pretty close. I'm kinda new to the freestockcharts.com, so I haven't figured out how to superimpose the SPY yet, but these inflection points do come right at intermnediate-term reversals.
When the "oscillator" crosses the 5-d MA, this has given a fairly reliable buy or sell reversal signal... maybe not on the day, but pretty close. I'm kinda new to the freestockcharts.com, so I haven't figured out how to superimpose the SPY yet, but these inflection points do come right at intermnediate-term reversals.
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If you just use the point where it slopes up or down, you get a buy sell signal that is about 5 days late.
ReplyDeleteso using your cross you get a buy/sell indicator 7 days later or so.
That does get rid of the "Failures" of the indicator.
and Holy Grail, Most of my point is that as a breadth indicator it's useless to show a Weakening of the trend leading into a top.
but I did want to credit it with an ability to give a Latent buy/sell signal.