You can expect a market correction when the red line moves below the blue line.
This gauge points to a rally when the red line moves above the blue line.
This indicator is saying the market should pause for a few days or weeks. Or, to put it in a different way, this is not a good time to start buying. It is wiser to wait for this gauge to turn around and move higher.
More on http://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
1 comment:
Any chance you can share what this indicator is?...stochastics, MACD,
Will %R, RSI, or some relative strength plot?
There must be some basis to how it is constructed? What is it? Knowing what one is looking at would enhance one's ability to assess the predictability of this plot.
How effective has it been in the past for predicting short term market moves,....in a trending market, vs. a trading range mkt, etc. Thank you.
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