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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (2889)	11/13/2000 10:52:36 PM
From: John Pitera	Read Replies (1) \| Respond to of 33421

Hi Chris, Here is Tushar Chande's CMO indicator........ here is one of the more interesting and I would suggest, a more meaningful mechanical buy signal that is being triggered in the past few days. the CMO is..... Equis - Chande Momentum Oscillator Review of NASDAQ COMPOSITE ($COMPQ) as of 11/13/00 The current value of the Chande Momentum Oscillator is -19.7637. The Chande Momentum Oscillator (CMO) shows an overbought condition when it's above 50. This is indicated on the price bars by coloring them red. Oversold conditions are defined as values below -50. This is indicated on the price bars by coloring them green. Currently, the CMO does not show an overbought or oversold condition. Alerts are triggered when the CMO crosses its 9-period moving average after being in an overbought or oversold condition. what has been interesting is that the optimal entry point has occurred 3-5 weeks after the buy signal has been given by the system. In effect, the next lower low, has provided a bullish divergence and a higher confidence interval to go long the NASD with a better Price and Time Entry level For either a Trade or an Investment Decision. geocities.com Here is a 4 + year time frame of Mr. Chande's Indicator on the daily NASD chart. geocities.com as you can see it's given only 4 buy signals and the previous ones have been quite meaningful. and irony being the operative concept in this year's market we again have the potentially advantagous entry point of a lower low in price, with a very nice liquidation of the "best tech Names" sustaining large recent sell-offs just when more meaningful buy signals showing up. Lets see how this one plays out. John