These are two great indicators I developed using the tools of Stockcharts.com.This is how I use them. When these gauges turn down for a few weeks from overbought levels they are warning me the market is entering a top formation. This is an important event, as I discussed below.The odds favor a consolidation period lasting several months. The market reaches a buy opportunity when the two indicators fall to oversold levels.
George Dagnino, PhD
Editor of “The Peter Dag Portfolio Strategy and Management” at https://www.peterdag.com
Since 1977
Author:
“Profiting in Bull or Bear Markets” (McGraw-Hill, Professional Series). Now translated in Chinese and distributed in China by McGraw-Hill Education.
“Investment Strategies using Stock Sectors” available free (unedited) on our website https://www.peterdag.com
3 comments:
Sir, No disrespect but I wish it was so easy to tell market bottoms and tops by only using a stochastics and MACD; I am sure if you back test this idea of yours you will find that you would have underperformed the markets severely over the past 10, 20, 30, or 40 years
Dear Guy,
I am interested to know.
What investing process do you use?
Lou S.
Dear Peter,
Could you please say which chart the MACD and FullSto indicators are tracking?
Many Thanks
Mike T
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