Posted by sbaxman111 on 16th of Apr 2014 at 02:02 pm
Below is a daily RUT chart starting at the end of 2007 and
running thru April 1, 2009. I found the correlation between the
Vortex indicator and the Squeeze patterns to be quite interesting.
I drew horizontal lines at the 1.2 and 1.4 levels for the Vortex
indicator. When the green or red Vortex lines went above the 1.2
line the Index was close to a short-term reversal point. Moving
above the 1.4 line was an even clearer turining point. I also
placed a horizontal line at the 50 level on the ADX to help
identify the stronger short-term squeeze patterns.
The current value is 0.87, which is nowhere near your turning
points. However, $RUT is underperforming $SPX and $DOW, and
current action of $RUT feels corrective (it has yet to reach its
EMA(9) on the daily charts).
Thank you for sharing your findings, they are fascinating.
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
Vortex Indicator and Squeeze Patterns
Posted by sbaxman111 on 16th of Apr 2014 at 02:02 pm
Below is a daily RUT chart starting at the end of 2007 and running thru April 1, 2009. I found the correlation between the Vortex indicator and the Squeeze patterns to be quite interesting. I drew horizontal lines at the 1.2 and 1.4 levels for the Vortex indicator. When the green or red Vortex lines went above the 1.2 line the Index was close to a short-term reversal point. Moving above the 1.4 line was an even clearer turining point. I also placed a horizontal line at the 50 level on the ADX to help identify the stronger short-term squeeze patterns.
http://stockcharts.com/h-sc/ui?s=$RUT&p=D&st=2007-12-31&en=2009-04-01&id=p43514676605&listNum=1&a=346365781
Title: fascinating finding The current value
Posted by junkie on 16th of Apr 2014 at 05:35 pm
The current value is 0.87, which is nowhere near your turning points. However, $RUT is underperforming $SPX and $DOW, and current action of $RUT feels corrective (it has yet to reach its EMA(9) on the daily charts).
Thank you for sharing your findings, they are fascinating.