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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 659.00+1.0%Nov 21 4:00 PM EST

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To: Les H who wrote (7607)3/5/1999 3:28:00 PM
From: HairBall  Read Replies (1) of 99985
 
Les Horowitz: I looked at your chart and noted a rise above 25 triggered a buy and a fall below 75 triggered a sell, but how does this indicator handle a rise above 25 triggering a buy, but the Market tanks soon after not allowing a rise above the 75 line?

And the reverse could be said of a sell generated with a break below the 75 line with a sharp reversal to the upside leaving one standing on the sidelines for a long term up move.

This problem would be a serious flaw in any indicator.

Regards,
LG
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