The above oscillator is basically created by substituting the 10 minute closing price into Terry Laundry's formula for 10% and 5% Exponential moving averages and then plotting the difference. This oscillator is a derivative of that function. Back testing shows that the DIA should be bought as the oscillator crosses from negative to positive and held till the oscillator reverses by crossing its own 10 period Simple Moving average. The chart also illustrates the current powerful up move in the DIA is distinguished by the oscillator positively crossing its 10 Moving Average above the zero line. This current behavior of the oscillator requires further study.
Wednesday, November 11, 2009
DIA 10 min close November 11, 2009 with Derivitive Oscillator
The above oscillator is basically created by substituting the 10 minute closing price into Terry Laundry's formula for 10% and 5% Exponential moving averages and then plotting the difference. This oscillator is a derivative of that function. Back testing shows that the DIA should be bought as the oscillator crosses from negative to positive and held till the oscillator reverses by crossing its own 10 period Simple Moving average. The chart also illustrates the current powerful up move in the DIA is distinguished by the oscillator positively crossing its 10 Moving Average above the zero line. This current behavior of the oscillator requires further study.
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