Thursday, June 2, 2011

6/2 Indicators

The fear indx, which measures S&P 500 volatility, has turned bullish on the macd (VIX). The indicator is in price-channel neutral phase.

sym phase adx   psar macd iv-sv

sym phase adx   psar macd iv-sv

sym phase adx   psar macd iv-sv

sym phase adx   psar macd iv-sv

Indicator Exchange-Traded Fund Symbols:
EEM - emerging markets
GLD - gold
JNK - high-yield corporate bonds
QQQQ - Nasdaq 100 index
SPY - S&P 500 index
TLT - Treasury long-term bonds
USO - crude oil
UUP - U.S. dollar index
VIX - fear index

  • chan: 55-day price channel phase, with green for bull trend, red for bear trend and yellow for neutral trend. I use the base rule for phase changes: A 55-day channel phase continues until the price has crossed beyond the opposite 20-day channel boundary.
  • adx: Average direction index location, indicating the strength, or the temperature, of the trend. Orange for 40 or greater, aqua (light blue) for 30 and up but below 40, magenta (light purple) for 20 and up but below 30, and brown for anything below 20. (Mnemonic: Orange for the overhead sun, blue for the surrounding sky, magenta for sunset on the horizon and brown for the earth.)
  • psar: The parabolic sar, either green for bullish or red for bearish.
  • macd: The macd, either green for bullish or red for bearish.
  • iv-sv: Implied volatility less statistical volatility (also called historical volatility). Orange if implied volatility is greater than and bue if less than historical volatility. Orange suggests net long positions will be more profitable (both bull and bear), and blue suggests the greater profit lies in short positions. Yellow means the two volatilities are identical (or close to).

About channel analysis

Read a detailed explanation of my channel analysis method, including trading rules.

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

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