Tuesday, August 18, 2009

Monthly Analysis

Here is a chart you won't see anywhere else, a Monthly S&P chart using an ATR_TrailingStop indicator:

Prices broke below the indicator in December, 2007 and have stayed below it ever since. It will take a Monthly close above 1030 for this indicator to issue a Buy.

Shorter-term, here is the 30-minute chart of the SPX posted earlier today:

It will take a drop beneath 986 to suggest a drive significantly lower has begun.

This may be a far cry from orthodox EW analysis, but my focus is glued to entering Short at the right time to reap the rewards that have been so elusive for the past six months.

What's that?

You want the bullish case?

Turn on your TV, or call your broker.

They are all over this new bull market.



Anonymous said...


Is the BWT indicator an ATR alogorithm?


Pivot Trend said...


Nice chart. How did you get that ATR_taillingstop indicator? It looks similar to an indicator called "trender" from bloomberg terminal (bberg is not cheap, I guess). However, the monthly trailing stop is at 1120 for SPX, compared with your 1030. Just FYI.

Anonymous said...

ATR aka Average True Range is a classic technical indicator that measures security's volatility. As such, it is not quite married to BWT, but as with all others indicators, custom parameters you're using when evaluating an indicator can make quite some difference.

Average True Range (ATR)

ATR is definitely interesting and useful, IMHO.

Anonymous said...

Still top picking I see Alan.

Anonymous said...

I think most of the trading systems for sale are based on ATR.
It is great indicator for catching trends.