Guys,
MCO, by it's own underlying mathematics does not measure overbought/ oversold. It's good at measuring momentum thrusts. Rate of change is not overbought / oversold. It's a measure of acceleration. I would probably use something like a Full Stoch on the Cumulative A/D on the hourly to measure the overbought / oversold.
Hourly Oscillator
Started by
IYB
, Mar 22 2009 05:00 PM
31 replies to this topic
#32
slick
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- Traders-Talk User
- 105 posts
Member
Posted 23 March 2009 - 07:52 AM
Momentum indicators are great if they work, but in reality, "momentum" is a phony concept for the stock market. It is defined as the product of mass and velocity, and although there is velocity and there is acceleration in the market, there is no mass.
wouldn't the equivalent measure to mass be... price?
As Einstein showed mass can be considered as the equivalent of energy, but "price" is neither energy nor mass. Momentum in the market is total fantasy, but hey, if it works for you, that's fine witrh me
