3 replies to this topic

[diogenes227]

http://stockcharts.com/c-sc/sc?s=$SPX&p=D&yr=1&mn=0&dy=0&i=p39131550318&a=244463604&r=1342129122548.png

[Echo]

Okay, I'll bite. What defines the blue lines? TIA Doc

[diogenes227]

Okay, I'll bite. What defines the blue lines?
TIA
Doc

That long term MACD (65,100,1) in the middle of the chart defines the blue lines.

I was fiddling around with the MACD one day and discovered that it might be a pretty good longer-term TA indicator. The fiddling was probably because of that anomaly when the NYSI rolled over in February and the market kept going until April. Match the April turn to the MACD and son of a gun, despite some lags, it matched up the price movements. I'd never trade this time frame myself but thought it's worth noting and given this is a long-term investing board I thought I'd chart it for anyone who wants to think about it. For me, just something to back up other indicators. IYB's 13EMA on his monthly chart does pretty much the same thing and might be simpler and better.

Interesting, though, how opposite TLT and a general market index like SPX are from each other; hence from stocks to bonds and back again on the blue lines if one is so inclined.

[mss]

http://stockcharts.com/c-sc/sc?s=$SPX&p=D&yr=1&mn=0&dy=0&i=p39131550318&a=244463604&r=1342129122548.png

Nice chart. I want to thank you for showing me how to use the $NYSI more effectively.

You might take a look at the chart below which has two MACD'S on it.

I often use the two together on a 1.0year & 1.5year daily chart. Sometimes the cross-overs are very enlightening and give early warnings of a change. I also use these on weekly IT & LT charts, for a different purpose.

[attachment=19816:sc.png]

Best to you,
mss