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divergence + zero crossover = signal confirmation


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#1 spielchekr

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Posted 25 May 2007 - 07:58 AM

http://stockcharts.c...ikin_oscillator
"...the Chaikin Oscillator gives momentum characteristics to the Accumulation/Distribution Line, which can be a bit of a laggard sometimes. By adding momentum features, the Chaikin Oscillator will lead the Accumulation/Distribution Line."
~AND~
"... there are two bearish signals that can be generated from the Chaikin Oscillator: a negative divergence and a bearish centerline crossover. Allow a negative divergence to be confirmed by a bearish centerline crossover, before a bearish signal is rendered."

It's hard to believe in oscillator divergences and crossovers anymore. But I've seen this one work before.

Here's a live chart to track it.
http://stockcharts.com/c-sc/sc?s=$SPX&p=D&yr=0&mn=3&dy=0&i=p76398852521&a=107709812&r=3248.png

#2 thespookyone

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Posted 25 May 2007 - 09:47 AM

Good TA is allways in fashion, thanks for the post. The fact that it takes good indicators a bit longer to come to fruition in this market does nothing to lessen their validity-good trading to you. Spooky