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发表于 2009-5-5 07:45 AM
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本帖最后由 oldfairy 于 2009-5-5 08:51 编辑
Third one
http://www.hutong9.com/viewthread.php?tid=47559&extra=page%3D1
written by Lynxx
NYADV top/bottom watch watch
Theory:
1. When an uptrend starts to slow down, it's NYADV tends to fluctuate in a smaller and smaller range. It's local maxima form a series of lower highs, on which a downward trendline can be drawn.
2. As the market starts the topping process, NYADV will shoot up again to pass the trendline upward. This should mark the beginning of topping.
3. Once the top is reached, market starts to go down, NYADV will drop sharply to pass the trendline again. This time is downward. And it should mark the end of topping.
4. Since NYADV itself is too noisy, I choose to use EMA5 as the gauge.
Additional comments:
1. Sometimes if the final spike didn't show up then there is no warning of the beginning of topping. But since NYADV will certainly drop sharply, a trend line connecting a series higher troughs may be drawn to confirm the top (the end of topping).
2. It should work similarly for bottom watch. But it looks like bottom watch does not have the same edge as top watch. And I am lazy now. May take some time to figure it out later. Will update then. |
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