Now Reading
Medium Term Oversold
136

Medium Term Oversold

by The MoleMay 14, 2009

You rats are really having at it tonight and we need a comment cleaner. There are two chart I’d like to share before tomorrow:

You all probably remember my trusted medium term stochastic grid. It’s starting to look a bit oversold around the edges and although the condition can remain in place for several days I would look out for a breach of the 20/25 line, which traditionally precedes a meaningful rally. Which naturally would be our next opportunity for a reload.

In that context let’s also remember our Cubes channel, which is mostly what I’m following right now as the NDX/COMPQ is leading the pack on this regression. I believe it’s reasonable to expect that a breach of the upper channel boundary would be accompanied by a stochastic breakout (as described above) as well. So, let’s keep an eye out for both occurances.

As long as we stay inside this channel I expect us to keep weaving further down – I am not firm on a final target yet and need to collect more data.

Cheers,

Mole


About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
Enjoyed this post? Consider a small donation to keep those evil deeds coming!

BTC: 1MwMJifeBU3YziDoLLu8S54Vg4cbnJxvpL
BCH: qqxflhnr0jcfj4nejw75klmpcsfsp68exukcr0a29e
ETH: 0x9D0824b9553346df7EFB6B76DBAd1E2763bE6Ef1
LTC: LUuoD6sDWgbqSgnpo5hceYPnTD9MAvxi6c
PayPal: https://paypal.me/evilspeculator