Ya can either buy when the cyan moving average crosses over the magenta,
sell when the reverse happens....or read all this crap...
One word sums it up....muddy.
Oh if it should ever close under 430.....CRASH....
!OEX...I'm still maintaining the same overview as last week The dip was
stronger than I expected.
When 520 or so gave way....testing of the 455-465 area seemed inevitable.
This chart shows that.
geocities.com
The other exchanges have, fortunately for the market, tested similar lower
levels of support and are thus far holding.
This is about as oversold as it gets. The trading range appears to be in the
455-540 area.
Note how the mass of indicators in the top box are at their lowest level,
actually in many months.
Okay here's a closer view of a daily chart.
geocities.com
All of the shown momentum indicators have given buy signals within
the last two or three days, with NO sign yet of follow through.Hard to trust
these here....pay more attention to the 14 day RSI (white) than the others
after this kind of volatility.
Look at the moving averages intertwined with the white Candlesticks.
When nothing seeme to be happening...it's a good idea to wait 'til the
6 day weighted (cyan) crosses above the 10 day weighted (magenta).
This will often give a good idea of an early move.
The biggest moves will usually start from these positions of oversold,
......but it's foolhardy to call them without the benefit of more confirmation.
When the moving average cross mentioned above combined with an MACD
buy signal happens....the road to recovery and possible test of old highs
will start to be much clearer.....it's still a little too muddy.
ALL the significant up trendlines have been broken....so with only one
decent up day recently...nothing to portend a rapid recovery.
Okay...weekly chart....once again severely oversold.....IF I'm about to enter
a stock I like that....but one needs to wait for some reliable confirming
signals.
geocities.com
If this were a stock and one were waiting for the weekly chart to start
to show some safety you would want at least a one or two up weeks.
There are indications of a recovery in it's infancy but it's still too early
and in fact a test of 430-440 on a closing basis seems viable within
the next few days.
Remember all the Candles are weekly data...the last one will finish
forming tomorrow. The indicator periods become weeks rather than
days.
Point and Figure....here's the chart followed by some canned info.
geocities.com
Flickerful, I know you follow P&F. I only use it in a very general way.
You need to tell me what BOX size and REVERSAL amount you want.
This is plotted as a 3 box size and a reversal amount of 2. I believe
the default setting would be the box size of 11 and the reversal amount
as 3.
As you look at this...once again note the accuracy of the moving averages.
...cyan crossing up over magenta...buy......dipping below magenta...
sell....oversimplification...but pretty darn accurate and can be tailored.
P&F charts are designed to display the underlying supply and demand of a security. A column of Xs shows that demand is exceeding supply (a rally); a column of Os shows that supply is exceeding demand (a decline); and a series of short columns shows that supply and demand are relatively equal.
P&F charts display an "X" when prices rise by the "box size" and display an "O" when prices fall by the box size. Note that no Xs or Os are drawn if prices rise or fall by an amount that is less than the box size.
Each column can contain either Xs or Os, but never both. In order to change columns (e.g., from an X column to an O column), prices must reverse by the "reversal amount" multiplied by the box size. For example, if the box size is 3 points and the reversal amount is 2 boxes, then prices must reverse direction 6 points (3 times 2) in order to change columns. If you are in a column of Xs, the price must fall 6 points in order to change to a column of Os. If you are in a column of Os, the price must rise 6 points in order to change to a column of Xs. The changing of columns signifies a change in the trend of prices.
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