Supplement to the above
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Supplement to the above
differences between the modified close and open (2). Small
bodies (3) represent these two indicators getting closer, and
mean either the start of a consolidation (4) or a possible change
of trend. Between February and March 2002 (trend AB), the
stock was in an uptrend, but the modified chart ULTI-HA
records this as a series of white candles with both lower and
upper shadows (4). This is an exception.
I created another simple indicator, haDiffCO, which is
displayed in a separate subchart. Positive values correspond to
white bodies (ascending trends), while negative values indi
forex sato
downtrends. In addition, you can apply a shorter moving
average (Mov-haDiffCo) to this indicator, and observe that:
• Crossings will point, with good accuracy, to changes in
the trend. Unfortunately, the whipsaws may eliminate
some good trades.
• Positive values of Mov-haDiffCo indicate an uptrend,
while Mov-haDiffCo values below zero show a
downtrend.
Both of these indicators are also discussed in the sidebar.
Figure 6. In these indicators, long bodies correspond to large
differences between the modified close and open (2). Small
bodies (3) represent these two indicators getting closer, and
mean either the start of a consolidation (4) or a possible change
of trend. Between February and March 2002 (trend AB), the
stock was in an uptrend, but the modified chart ULTI-HA
records this as a series of white candles with both lower and
upper shadows (4). This is an exception.
I created another simple indicator, haDiffCO, which is
displayed in a separate subchart. Positive values correspond to
white bodies (ascending trends), while negative values indicate
downtrends. In addition, you can apply a shorter moving
average (Mov-haDiffCo) to this indicator, and observe that:
• Crossings will point, with good accuracy, to changes in
the trend. Unfortunately, the whipsaws may eliminate
some good trades.
• Positive values of Mov-haDiffCo indicate an uptrend,
while Mov-haDiffCo values below zero show a
downtrend.
Both of these indicators are also discussed in the sidebar.
forex sato
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