|
PureBytes Links
Trading Reference Links
|
Don't want to start any panics here, but thought this little picture might
be of interest to a few TA afficionados. You may have heard in the past
that +50, -50 define a neutral region for the McClellan oscilator of
issues, but when looking at a daily chart of that indicator you see the
oscillator in the plus, minus hundreds. Surprise, surprise, when looking
at it on a weekly basis it does infact cycle in the +50, -50 region much of
the time. Its close cousin, the volume oscillator has not been promoted as
much as the issue oscillator. So you might wonder if it has any value as a
timing device. On weekly charts it swings roughly between +250 and -250
and forms camel type, sometimes dromedary, humps. When it forms these is
not always coincident with intermediate turning points in price. For
example as of the week ending July 25, 1997 the volume oscillator has
formed the two hump type top and dropped all the way to just below the zero
line while the issue oscillator has been tracking just below the +100 line.
The 64 trillion dollar question is will the issues and price follow the
volume osc down or is the volume oscillator going to stage a bounce. Lets
see what the pictograph looks like next weekend. The daily osc has been
sent via separate post for those who may have missed it yesterday.
BobR
Attachment Converted: "c:\eudora\attach\McOsc weekly.gif"
|