Could you give a bit more explanation? smoothed how? what are you trying to show in the graph? etc...
blackbox smoothing. T3 should be comparable. When the velocity is above the zero line, it's a long signal; short for below the zero line.
Here is another view of market activity. Since late April, the DOW has been bouncing off the 76% retracement levels. Apparantly, it is at this level that people are willing to pump money into the market as long as the overall sentiment view is bullish. Charles
Charles, that's an interesting take. How did you happen to notice it? kut2, I'm still not really sure what the chart is or what its supposed to be saying. If + means long, then it was long into the downtrend and later entered long again after the rally.
Just taking a look back at the past, and the signal bottom spikes below the yellow line, the market was just oversold enough too be time for the move.... Do you think it will continue and be a strong move up from here....
Babak, It is just one of the things that I analyze on daily charts. Typical retracements during short term trends seldom retrace more than 76%. If the retracement stays within the 50 - 76% range, the trend has a good chance of continuing. Also, last week, the Rydex Cash Flow Ratio was indicating an oversold condition. Trendtrade, Nice chart. I wish I was smart enough to know if this trend will continue. Watch for pivot point breaks. Charles
Charles, I wish I had a crystal ball The total market index is looking strong and the NYSE broke out too new highs yesterday, it might have a chance...