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Dear trader,
--- In amibroker@xxxx, "Mad Trader" <traders10@xxxx> wrote:
> Hi Dimitris, I finally got some time to look at your recent AB
> work....interesting stuff.
>
> I have included a chart layout I used to evaluate your OBI-OSI
indicators.
> Viewing these five at the same time helped me see what you are
trying to
> show.
>
> Questions:
>
> 1.Stoch pos divergence indicator. If the black vertical bars
indicate a
> divergence between security price and the stochastic of the
security price,
> what is the significance of the red plot that surrounds some
verticle black
> bars?
> 2. Same question for the stoch neg diverg indicator with the green
plot on
> some of the bars.
The formulas are already in the AFL Library.
Black bars indicate that the previous day a peak (or a trough)
occured in stochd graph.
Unfortunately you will know tomorrow that yesterday´s high was a peak.
Red (or green) lines are indicating exactly the day after a
stochastic divergence took place.
> 3. The # of issues with divergences plot makes sense to me as a
> representation of what is occurring in the market as a whole. We
have adv
> and decl issues, up vol and down vol, and now OBI and OSI as a
market
> indicator. Is this correct?
Yes. I use here "breath" instead of "breadth" used for advissues and
its derivatives. I try to describe the breath of the market, changing
continuously between oversold and overbought.
I will revert with the rest,
Dimitris Tsokakis
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