|
PureBytes Links
Trading Reference Links
|
Harley & co,
Your analysis of divergences is smack on. But I totally disagree with
the TA bible that says RSI & other oscillators are useless in a trending
market. Since I first published divergence analysis as a major market
tool in June 1978 I have found that the RSI frequently converts
unreadable trends on a stock price into a superb trend on the
oscillator.
Also note that the default 14 day period is not absolute. I often use a
34 period RSI for longer term trend analysis.
Stochastics can also be converted to long term trend analysis by
extending the %K period.
There appears to be an analytical myopia towards the sole use of
oscillators as short term signallers. Believe me, from 25 years
experience, one can use oscillators as excellent long term trend
indicators. Looks like someone should rewrite the'bible'. Also looks
like I must write an article on oscillators as long term trend
indicators.
Regards. Dr. Clive Roffey
|