MDA - Market Direction Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis

SPY 671.91

0.0%

4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: HairBall who wrote (30890)	10/22/1999 2:16:00 AM
From: Smooth Drive	of 99985

Hello LG, >>How will this chart track during a "bear" market? Will the tracking invert?<< That's a good question LG. In a word, "No". This chart is simply constructed by taking the new 52-week highs and dividing by the new 52-week highs plus the 52-week lows. It oscillates between 0 and 100%. As a Bullish % Chart, we become a bit bearish when it's overbought (above 70%) and bullish when it reverses up from oversold (below 30%). It helps to tell us when a short or long term bear is coming (it reverses down from an overbought area) and if the bear stays, it will simply hang around the bottom like a big old catfish. When stocks eventually start hitting new 52-week highs, then the chart is going to start easing up. If, however, it washes out and new highs don't come (as was the case in the early 70?s) then not much happens and it stays oversold. In a nut shell, in an uptrending bullish market as we've had for many years, this chart will oscillate up and down and catch many of the ebbs and flows of a bull market. If however we get an extended bear market, this chart will remain in an oversold condition until charts start hitting new 52 week highs, at which time it'll reverse up and provide a leading indictor of things to come. Take care, Eric

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next