$SPX - Chart Link - here's a weekly chart
of the SPX with the two indicators at the bottom as the percentage
of stocks in the SPX above their 50 day MA. I added the
indicator twice for these two reasons:
1. the middle one has Bollinger Bands on the indicator, notice
that when the indicator tends to spike way down below the lower BB,
it's time to be on the look out for a bounce.
2. You don't just buy when the indicator goes below the lower
BB, you need a trigger, so on the bottom SPX50R indicator I placed
the 9 EMA over it, price tends to get pretty extended from this MA
at the same time, so a trigger would be taking back 50% of the
large candle (once it spikes below the lower BB) or taking out the
high of a doji candlestick, which is similar to the tutorial
methods. The vertical dotted lines represent triggers based
on taking back the previous large candle (note the small lines
drawn through the middle of the previous candles)
% Stocks in SPX above their 50 day MA
Posted by matt on 13th of Oct 2014 at 05:06 pm
$SPX - Chart Link - here's a weekly chart of the SPX with the two indicators at the bottom as the percentage of stocks in the SPX above their 50 day MA. I added the indicator twice for these two reasons:
1. the middle one has Bollinger Bands on the indicator, notice that when the indicator tends to spike way down below the lower BB, it's time to be on the look out for a bounce.
2. You don't just buy when the indicator goes below the lower BB, you need a trigger, so on the bottom SPX50R indicator I placed the 9 EMA over it, price tends to get pretty extended from this MA at the same time, so a trigger would be taking back 50% of the large candle (once it spikes below the lower BB) or taking out the high of a doji candlestick, which is similar to the tutorial methods. The vertical dotted lines represent triggers based on taking back the previous large candle (note the small lines drawn through the middle of the previous candles)
Those are weekly charts, so
Posted by junkie on 13th of Oct 2014 at 05:08 pm
Those are weekly charts, so a signal is not going to be good. Could you have the same chart on the daily time frame?