The State of the Trend

By: George Krum | Sun, Jul 22, 2012
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Although probably frustrating for many, the current market is a dream come true for swing traders, and for those who pay attention to market internals.

How will we know that the market has entered a trending stage? When overbought market internals lead to a sideways/up movement in an uptrending market (November '11 - March '12), or when oversold market internals lead to a sideways/down move in a downtrending market:

Another tool that can help keep us on the right side of the market is the OddsTrader Risk/Reward Oscillator, which eliminates a key drawback of traditional oscillators; namely, their propensity to stay overbought in an uptrending market, or oversold in a downtrending market, thus giving false signals. By contrast, the R/R Oscillator remains oversold in an uptrend, and overbought in a downtrend, thus identifying opportunities to stay and trade with the trend.

In the last article, two weeks ago, we mentioned that the SPX should trade above 1337 and 1317 for the bullish case to remain alive. This proved to be the case, and now the relevant support levels are 1325 and 1300:

 


 

George Krum

Author: George Krum

George Krum
www.citdates.blogspot.com

George Krum is the author of the "CIT Dates" blog, and the following apps available from iTunes:

OddsTrader - uses the power of Hurst Channels to produce price and time targets, and combines them with proper risk and position size management.

OT Trend - helps you quantify and forecast the seemingly random ebb and flow of stock, index or mutual fund movement.

OT Fibonacci - automates the process of applying Fibonacci numbers, ratios and time series to any security.

OT Seasonal - allows you to perform seasonal analysis on practically any security from around the world and to build long-term forecasts and models.

OT Pairs - is the first mobile app that gives users access to one of the most profitable and time tested hedge fund trading strategies.

OT Pivots - combines the power of Pivot lines with cycles and automatic signal generation.

Gann 9 - is the only financial app that allows users to effortlessly apply the legendary W.D. Gann's tools and methods for trading (including the Square of 9).

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