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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: broken_cookie who wrote (22647)	8/10/1999 2:49:00 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69810

Hello Rich, It been a long time since we have chatted. Are you still in NT? On the EPC, traditionally I have been using reading greater than 0.55 as an oversold indicator in a stable trending market. Unfortunately, this is not a normal market. Many traditional indicators are distorted. As a example, you just have to look at the McClellan Oscillator. The last trading days the indicator reading have been: McClellan Oscillator EPC Aug 9 -141 0.61 Aug 6 -124 0.62 Aug 5 -128 0.53 Aug 4 -107 0.54 Aug 3 -96 0.57 Normally readings greater than +/-100 should result in a reversal of the trend. From memory, last October we saw a EPC of 0.72 on heavy volume on the exchanges, before we saw a significant reversal of the trend and this reversal did not happen immediately after the 0.72 reading. I would look for this level of reading to signal a reversal. Keep in mind that options expiration this month will distort the EPC. We need this kind of reading not in an options expiration week. The EPC needs to be used in conjunction with other other indicators though given the distortion of traditional indicators we are seeing. Here is a variation on the EPC I use: marketgauge.com Different levels to signal bullish/bearish level, but same idea. Regards Harry