Investors often find Bollinger Bands very useful because they show when index or stock levels are reaching extremes. This is accomplished because Bollinger bands (on a 20-2-2 setting) measure the tick action against two standard deviations of action. Typically, when a tick is above or below the extreme bands, it indicates an overbought or oversold [...]
Where is the balance of power now?
October 15, 2012 by
Where is the balance of power now? At the end of each trading day, we measure how many stocks have positive strength and how many have negative strength. We do it on the S&P 500 for two reasons. One, is that it is regarded as the best proxy for the state of the economy by [...]
A Trading Tip: When NOT to trust the Relative Strength Indicator.
August 22, 2012 by
This indicator can tell you “when not to trust the Relative Strength Indicator” … There is a time to not trust what the Relative Strength indicator is telling you. But how do you know it is a “don’t trust the Indicator day”? Today’s chart gives you the answer. In today’s chart, we show a 9 and 30 [...]
Using Relative Strength for Profitable Trading …
December 30, 2011 by
Using Relative Strength for profitable trading … Today, we will look at two Relative Strength settings that work well together. By the way, when you look our first chart, it says that the indicator is a C-RSI set for a 30 day time period. The C-RSI is not complex and it is something we invented to just make deciphering [...]
