Re: oversold vs volume

Mosaic ImmunoEngineering is a nanotechnology-based immunotherapy company developing therapeutics and vaccines to positively impact the lives of patients and their families.

Reply New Message

Prev Message Back To Forum Threaded View Next Message

PxPEnPassant

Rank: President [?]

Points: 3156 [?]

Votes: 68 Score: 3.5 [?]

Your Vote:

Please Log In to Vote

Did you know? You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)

Re: oversold vs volume

in response to

oversold vs volume

limerickhook

posted on Dec 11, 2008 06:23AM

'Hook,

The chart I'm looking at indicates an 'overbought' position on stochastics and rsi instead of oversold. But also keep in mind that the STO, RSI indicators can fail in extreme markets. In other words, the oscillators may remain in overbought positions as sp continues to climb. Ths sp can continue to rise after the stochastic oscillator reaches 80 and continue to fall after the oscillator reaches 20.

The MACD is currently the more reliable indicator which is very near a bullish zero axis crossover. There's been significant divergence since July (falling sp/rising MACD). I'm anticipating .17 to be the first level where a pullback may present itself. This is not bad, in fact, even if the sp pulls back here, the current spike still presents an uptrend stronger than the previous congestion pattern.

SP is just beginning to break into the upper Bollinger, so technically, it's due to show signs of a pullback. The sp should have pulled back at .13 but didn't. Rather than an expected drop of 1 cent, there was small doji cluster formation and sp remained even. Although I think the sp will pull back just a bit here, it could just as easily repeat last week's candle formation with those beautiful little doji's.