MCO return to 0. ? for diogenese, fib, other breadth experts
#1
Posted 29 August 2013 - 12:30 PM
#2
Posted 29 August 2013 - 01:18 PM
#3
Posted 29 August 2013 - 01:43 PM
Well, I'm sure that the resident expert of the McClellan Oscillator and Summation Index will chime in as soon as he's available to do so.And, no "MCO experts" would answer an otherwise excellent question like this.
Interesting...
Me? I'm just a mere conduit who, as I've been told, knows very little on the subject matter.
Fib
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#4
Posted 29 August 2013 - 02:10 PM
#5
Posted 29 August 2013 - 02:12 PM
I'm just a mere conduit
Hope you're doing fine with all those wires running through you. :=)
Alright, good trading.
Later...
#6
Posted 29 August 2013 - 02:29 PM
#7
Posted 29 August 2013 - 02:31 PM
Anyone? Not looking for a food fight, just some insight.
I'm no "expert", but I'm guessing Fib wants me to take a stab at the answer, since he's probably PMing you, asking you to paypal him $2.50 for his expert reply
Yes, its a positive divergence. Negative momentum in internals is waning at the moment.
If 5% line is above 0, that means the A/D line is above the 19 EMA, as in its already trending up, so with a positive divergence on MCO in an already established positive trend, you get really good chance of a rally.
If 5% is below 0 AND 10 % is below zero ( like now ), that means the A/D line is below 19 and 39 EMAs, so you have already an established negative bias in the market. On top of that 19 EMA crossed under 39 EMA ( Summations below 0 )
My guess is this one can go either way. You may get a pop, or it may break down, just as any other divergence may fail.
Add to this miserably low volume, and I have no trust in anything here. Personally, I'm going to wait for a more definitive setup before changing my bias.
Edited by ogm, 29 August 2013 - 02:33 PM.
#8
Posted 29 August 2013 - 02:41 PM
#9
Posted 29 August 2013 - 02:50 PM
http://chart.finance...S®ion=US.png
#10
Posted 29 August 2013 - 03:11 PM
Anyone? Not looking for a food fight, just some insight.
I'm no "expert", but I'm guessing Fib wants me to take a stab at the answer, since he's probably PMing you, asking you to paypal him $2.50 for his expert reply
Yes, its a positive divergence. Negative momentum in internals is waning at the moment.
If 5% line is above 0, that means the A/D line is above the 19 EMA, as in its already trending up, so with a positive divergence on MCO in an already established positive trend, you get really good chance of a rally.
If 5% is below 0 AND 10 % is below zero ( like now ), that means the A/D line is below 19 and 39 EMAs, so you have already an established negative bias in the market. On top of that 19 EMA crossed under 39 EMA ( Summations below 0 )
My guess is this one can go either way. You may get a pop, or it may break down, just as any other divergence may fail.
Add to this miserably low volume, and I have no trust in anything here. Personally, I'm going to wait for a more definitive setup before changing my bias.
Agree with your assessment. Assumed this would end up being a low volume pre-holiday week so I took it off. Have been back testing ideas using the MCO and breadth which led to the question. I too think it could go either way on this positive divergence but I have too many sectors that are still on sell signals to bother taking a chance on a long here. At this time, the MCO looks like a classic backtest of zero leading to another leg down. If breadth were positive (5% above 0), then I would lean towards a strong bounce here. As it is, I'm guessing that it meanders for a bit or drifts down.