'trans' pid='50873' datel Wrote:
'trans' pid='50833' datel Wrote:The way I do TA is a bit diff than the media. I use 2 and 3 day short term strength ratings. These strength ratings are on numbers released at day's CLOSE. So they're still maybe premature, but I want to give a hint of the internals going on.
The strength rating numbers for both 2 and 3 days appear significant building. There are only three areas where strength ratings were similar and they were significant mkt bottom area that were important low areas. They are as follows:
November 20, 2008
January 15, 2009
How about a market misery update? I mentioned this work can be a bit early on a really bad market and this is one. One thing that's important in this work is that virtually every market PIVOT POINT meaning high or low area for a number of years occurs around option expiraitons. I believe this is because so much of the BIGS action is tied up in derivatives and liquidity is highest at expirations.
August 18, 2011
I will have to review further, but these numbers present so far today were in significant low areas I believe, maybe not eh exact low
fwiw....trans
that's 6 years of data
Okay, the 2 day strength rating this am is 288. That's about as good as it gets. The normal trading buy is in the 230-300+ range, with the higher number marking the bigger bottom areas. In the 6 year period above, the bottom numbers were 282,306,283,285,305,278,301, and 286 The three day rating this am is 396, with 400+ ratings the high spots
Today's strength rating (after the close) may be even higher, but this indicator concludes that the highest pessimism occurs at the bottoms.......fwiw good luck