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smudge chart, 2nd generation


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#1 spielchekr

spielchekr

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Posted 12 June 2007 - 10:47 PM

Still playing around with it... it's still a toy at this point. I really goofed on the 1st one :blush: , but nobody seemed to catch it :lol: . Anyway, this is by
definition a "fuzzy" chart meant to give some "feel" to an issue. It doesn't give exact signals. But there's no substitute for intuition evolved from years
of trading. Until I have that under my belt, this might help me out once in awhile.

What this tells me is the overall condition of the rollover points of the simple moving averages between 20 and 180 periods. When price is in the white,
it's all clear (there are no negative-sloped simple moving averages at or above the price). When price is in the solid brown, all of them have rolled over.
Shorter period SMA rollovers have the darker (bluish) tones, longer period SMA rollovers have the lighter (peachy) tones. Kind of like entering the storm,
then the brown flood water, the sun breaking through the clouds, then clear sailing.

I welcome your comment and criticism.

60 minute chart to date (price entered the brown flood waters today):

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To get a feel for this chart, here's the Mother of All Bubbles:

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