Accumulation/Disttribution & Chainkin Oscilator
Parabolic SAR
Accumulation/Distribution Line
Shows general flow of money, but does not take gaps into consideration. An uptrend indicates that buying pressure is prevailing and a downtrend indicates that selling pressure is prevailing.
Signals: positive and negative divergences.
Be wary of weak positive divergences that fail to make higher reaction highs or those that are relatively young. Look for at least a month of positive or negative divergence.
The Chaikin Oscillator (MACD applied to the Accumulation/Distribution Line)
Signals: divergences and centerline crossovers. For best performance use both signals: look for confirmation of a positive divergence by a bullish moving average crossover and a bearish centerline crossover with negative divergence.
Parabolic SAR (stop-and-reversal indicator)
After establishing the trend trough other indicators, tradw with Parabolic SAR in the direction of the trend.
The dotted lines below the price establish the trailing stop for a long position and the lines above establish the trailing stop for a short position.
CCI & CMF signals
ZigZag With Retracements
CCI :
Oversold below -100, overbought above +100.
Buy signal: when the CCI moves back above -100. Sell signal: when the CCI moves back below +100.
Divergences: positive divergence below -100 increase the robustness of a buy signal; negative divergence above +100 increase the robustness of a sell signal.
Trendlines (connecting the peaks and troughs): From oversold levels, an advance above -100 and trendline breakout could be considered bullish. From overbought levels, a decline below +100 and a trendline break could be considered bearish.
CMF:
Readings above +.10 (+10%) indicate accumulation/buying pressure and readings below -.10 (-10%) indicate distribution/selling pressure.
This indicator is best used in conjunction with traditional technical analysis and other indicators. Divergences can be used too, but it is usually best to wait for a cross of the zero line for confirmation.
ZigZag w.Retracements
The ZigZag can be used to measure primary price movements. As opposed to a correction or reaction rally, a primary price movement is in the direction of the underlying trend. Instead of retracing a portion of the previous move, primary moves extend past the previous reaction high or low.
After an advance, it is common for a security to retrace a portion of its advance with a correction. After a decline, it is common for a security to retrace part of its decline with a reaction rally. According to Dow Theory, 1/3, 1/2 and 2/3 retracements are most likely. Based on Fibonacci numbers, 38.2% or 61.8% retracement levels are deemed significant.
The ZigZag has zero predictive power and draws lines base on hindsight. Any predictive power will come from applications such as Elliott Wave or Fibonacci retracements and projections.
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