This may seem knit picky but this is some of the analysis I do during the day that I don't usually bother you with. The concept is changes in character lead to changes in trend, my Trend Channel is the best example of this and is very successful in doing what it was designed to do, spot changes in a particular stock's character, create a formula using standard deviations and when a stock changes character so much that it violates the standard deviation formula, the channel calls a stop or a reversal.
While these changes in character can manifest in many ways, price momentum, volume changes, etc, we are looking strictly at price momentum. Everyone knows the market is down, it is that which the crowd missed that where you generally find an edge.
DIA moving to the upper portion of the Linear Regression channel
IWM has broken the LN channel, after being in the lower area this a.m.
The Q's have also broken out of the LN Channel
The SPY has moved toward the top of the channel.
These are not huge signals and could manifest in any number of price patterns, but they are a start of a change of character.
No comments:
Post a Comment