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Cab,
What do you mean by 'pegged' at extreme values?
Harley
Cab Vinton wrote:
> Hi, All:
>
> A few ideas:
>
> 1. Thomas DeMark's Range Expansion Index is an attempt at solving
> the problem of oscillators getting pegged at extreme values during
> trends. See his first book for details. (I don't have the Metastock
> code.)
>
> 2. Tushar Chande also has several relevant indicators: the Chande
> Momentum Oscillator (CMO), StochRSI, and Dynamic Momentum Index, in
> particular. See his books for details.
>
> 3. Martin Pring has had some interesting ideas:
> * Look for the lowest momentum readings since the beginning of
>
> an uptrend (& vice versa.)
> * Look for mega overbought/ oversolds, i.e., multi-year highs/
>
> lows in the oscillator readings (especially w/ high volume.)
> * Look for extreme swings in the oscillator, i.e., moves from
> very overbought to oversold (& vice versa) within a relatively
>
> short period of time.
>
> Finally, it's worth noting that in a strong trend non-range bound
> oscillators will not get pegged: they'll simply keep rising/ falling
> into even more overbought/ oversold regions. (e.g., Close - Moving
> Average)
>
> Hope this helps.
>
> Cheers,
>
> CAB.
>
>
>
> non-range bound
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