|
Posted by ChartFilter on September 20, 2006, 4:49 pm
Overview
Oscillators work on the premise that markets tend to over extend
themselves on both sides of the scale. Whether these extreme conditions
are described as overbought or oversold (momentum), strength (trend) or
something else, it is when these extremes are reached that it is
assumed the market is in a position to begin a correction (minor or
major). These extreme values in oscillators tell us when to be watchful
of the ever dreaded and inevitable trend reversal.
Oscillators also give us information about the general trend. As trend
analysis works with the price line, it is also a valuable part of
analyzing an oscillator. This is where part of the "predictive"
abilities of oscillators are seen. These events are also known as
convergences and divergences. This is when the trend of the oscillator
has broken before the price trend, and they are no longer moving in
parallel.
Read more: http://www.chartfilter.com/newsletter/stoch/stoch.htm
Need a financial term? Check out our glossary
http://www.chartfilter.com/glossary.htm
Technical analysis indicators explanations
http://www.chartfilter.com/indicators.htm
Subscribe to our monthly technical analysis educational newsletter, an
excellent resource
for the technical trader.
Sign up here: http://www.chartfilter.com/archivednewsletter.htm
Technical and Fundamental stock screener Includes a full technical
report, Standard and
Poor's balance sheet, intra-day charting and company profiles. Also
with over 100 PreScreens! This combination of features makes our stock
screener the most powerful screener available. Features:
http://www.chartfilter.com/screenerfeatures.htm
Need software? Our charts feature buy/sell signals for every support
indicator, value tracking for both price and indicator charts, screen
with price and volume ratio's, set daily alert combinations, technical
and fundamental screener, portfolio manager and fundamentals. Features:
http://www.chartfilter.com/toolsfeatures2.htm
http://www.chartfilter.com Technical Analysis Education and Stock Tools
|
|
Posted by Steve on September 21, 2006, 3:48 am
Conventional indicators eventually fail - including stochastics.
Learn arcs.
Good luck,
Steve
|
| Similar Threads | Posted | | Do you have a closet full of used clothes? If so you are like millions of other people who have accumulated closets full of used clothing that they no longer wear and full of children's clothes with their children no longer living at home. If you love | April 20, 2008, 3:51 pm |
| Re: Re; Stochastics | June 12, 2005, 2:52 am |
| The Stochastics | December 5, 2006, 5:29 pm |
| Why Do These Things? | April 14, 2008, 9:53 pm |
| 5 things you must know before investing in FDs - | April 22, 2008, 7:47 pm |
| Here there are good things, stop by to see! ~ ~ | July 15, 2008, 10:04 pm |
| Six Things To Do In A High Risk Market | October 8, 2005, 11:05 pm |
| The 10 dumbest things investors say to advisors | December 4, 2006, 1:38 am |
| Send me the full details | January 27, 2007, 2:10 am |
| The fast, slow and full stochastic | September 7, 2006, 4:06 pm |
|
|