Thursday, September 24, 2009
Mr Nasty is probably the Ultimate Oscillator of the Breadth Arena, therefore it would be much like the House of Representatives, with PROPORTIONAL REPRESENTATION, whereas
SHOCK FACTOR is more like having Representatives from geographic areas, in this case, Volume Indicators, Price Indicators, TA Formations and so - on. They might not always be instep, but when they agree, things get done.
In the case of the pink line, which is the Standard & Poors 500 has turned down as Mr. Nasty is finding a crest, and its daily has fallen below its moving average.
I would not suggest this as a trading tool or backstop, but say that it confirms when a downturn is happening. Is this a short signal? Since I am not shorting as my primary tactic now, I would still say that this chart confirms a downturn. It also does not promise any longevity to the downside, but you play that out using STOPS.
The above chart is laid out to demonstrate the moves, but I would be careful to use it for any purposes other than confirming anything your researching.