Hello, helloooo! Been awhile since I posted one of the charts I watch on a regular basis. mainly because those charts have been extremely boring for awhile. finally a pop- indicating a drop is coming soon. What I've come to realize after studying behavior of these charts for some time now, is that movement up or down from midline, indicates some volatility is coming soon, headed the opposite direction. how long that opposite direction goes for, the charts won't absolutely guarantee. Once indicator returns to the midline (mean), it could go either direction from there, and may take longer than one could imagine to pop or drop from the midline. or could pop or drop extremely rapidly and then resume direction it was headed prior to the revisit to the midline.
It's a volatility indicator. midline indicates temporary stability, could be short duration, could be medium duration. was medium duration for awhile now, but that stability is about to shift, it would seem. caution in order. Here you go. something to consider, glad I'm in G at the moment. YMMV. P.S. I pay most attention to the 10 x 20 MA chart movement, which is still sitting on the midline. this is the 5 x 10MA chart. shorter-term volatility indicator. consider it an earlier warning signal. not as strong but still useful.
sp500 3y 5-10ma 6-2-17.png
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