I like using the Stochastic-Momentum indicator in certain instances because
it can often give you a much clearer picture than just using a Stochastic indicator.
Some refer to this indicator as the SMI and they use the same trading rules
as they use with the Stochastic Oscillator.
Today, we will apply the Stochastic-Momentum indicator on a Weekly chart
of the 30 year bond yields.
To use it on a weekly TYX chart, we like to use the following settings:
- The %K set at 14,9,9 ... and the %D at 3.
As you can see, in spite of all the Bernanke/Fed interference with interest
rates, the Stochastic-Momentum indicator can give very helpful trending information
for investors. As you can see below, for the past two years, the Stochastic-Momentum
indicator has done a very admiral job on the TYX.
P.S. If you don't already have access to our paid subscriber updates, consider
taking advantage of the 3 dozen+ charts and analyses that we post every day.
Have a great weekend and we will see you on Monday.
Marty Chenard is an Advanced Stock Market Technical Analyst that has developed
his own proprietary analytical tools and stock market models. As a result,
he was out of the market two weeks before the 1987 Crash in the most recent
Bear Market he faxed his Members in March 2000 telling them all to SELL. He
is an advanced technical analyst and not an investment advisor, nor a securities
broker.
StockTiming.com is dedicated to
Stock Market Investors who want the best information on stock charts, stock
market trends, stock market timing and technical analysis.
Be My Guest and Take Advantage of Our Free Membership ... Get a Free
Membership to StockTiming.com ... Youll receive important daily messages before
the market opens and direct links to todays important web pages. Information
and messages that are often not posted on our website. There is no obligation
or expectation on our part ... it is just our way of proving our accuracy and
timing expertise to you. Please click here for your Free
Membership.
Circle Us