Is this a bear-flag forming on the 5 min chart? If so, we may just be leaving it to the downside, just as bear-flags should be left.

Thanks for the reminder Matt! In case we soon see another gap down we have been noted.

It depends on the Standard Deviation and even so, it is just historical data. It would be too easy to trade if one just had to look at historical data of how a certain day has played historically. The markets have been pointing down since 11th of August, it would be logic with some days in green now. The STO(21) on the S&P is just about working above the 20% level now after going under 80% on August 11.

Bjorn

It's all Monkey Business 

You need Steve Job's favorite program Adobe Flash player to see it. At least that is normally the case with .swf files.

EMA 8 on the S&P 5 min is still doing resistance to that wave, but we may just about be pulling through there now.

Hi,

I would like to ask a general question to the community here regarding the use of RSI in TA. Here at BPT I find that RSI is mainly mentioned when the it is in the state of overbought or oversold. However I often notice that if one draws a trendline on the RSI when those appers in clear patterns (which is not 100%), a break of that trendline often precludes a shift in the price trend. It acts like a kind of warning flag that hey, watch out, the Stochastics are soon about to rollover 20 or 80 as well and then the price will move too.

I include a sample from S&P 5 min chart from yesterday where you can see how the trendline of the RSI on two instances is broken about an hour before the STO(60) rolled over.

Is this a technique that you are using or you do not think that it works well enough?

Bjorn

Thanks for that book. The first link worked well.

If anyone find that they'll need a free program to unzip .rar files here is one for Windows.

http://www.rarlab.com/rar/wrar380.exe

Will be interesting to read that book after all appraisals about it on this blog.

Just closed the gap from yesterday.

In addition the 144 Stochastics hardly broke through the 50 level on the 15 min chart. I kind of recall that you (Matt) mentioned that we should look out for resistance there in the pre-trading day news-letter, one more piece to the puzzle.

"Davidd" suggested on June 10 that; " Here are the rules for a breakup-buying SSO.  On five minute chart, watch Slo Sto turn back up. Wait until MACD crosses over -0- line and CCI crosses -0- line."

The CCI has not passed 0 yet. 

I have read comments here on the blog regarding them that they are no good long-term hold.

A look at this listsays it all. In the Year-To-Date column, most of the ETFs are in red no matter if they are bull or bear, ox or fox or whatever. Still they are good for leveraging on the swing trades.

Thanks for that tip! It's a nice community around here that shares so much wisdom.

Same graph but a bit larger and less clutter.

Hi,

Thanks to a tip from one of the members here I have recently begun to use www.freestockcharts.com. It is indeed free and better than www.stockcharts.com unless you are a member there and paying the monthly fee for that.You can save your settings here as well and use the tab to see several charts at the same time.

Anyhow, trying out different STO levels on the daily charts, I find that using STO(18) has been a nice mid-term indicator in the past 6 months.

Bjorn

Goodness MEE (couldn't resist that pun) has moved up 3% today and ... it's on the watch list.

I've read previously in other articles about this that to fine-tune further, mid-October to mid-April would be the optimal 6 months to stay long.

But then again, don't forget about Mark Twain...

that there is a good probability that the gap will be filled. S&P Sto(144) bounced at 17 and has then taken off.

Let's see

168 SMA also works nicely on a 5 year graph of the S&P index, not only during the recent period. 168, another Fib-number?

SeaDrill should also benefit from the lift of that ban on offshore drilling.

In a nice uptrend since July 22 when EMA 13 crossed-over EMA 34. Resistance at 24?