Wednesday, May 12, 2010

Adjusting my indicators

My Market Summary SPY charts that I post here are composite images of four charts reflecting four time frames: Weekly, Daily, 240 minutes, and 60 minutes. To me these represent the four time frames of Long term, Intermediate term, Short term, and very short term. To these charts I have added my own proprietary indicator that changes the background color from green to pink as price crosses a trigger line. This trigger line is a moving average and depending on which moving average is selected will determine how sensitive the chart is to changing background colors. The weekly chart is my long term time frame and is set to SMA 7 on the first chart below and 12 on the second chart. Seeing how the markets have reacted recently I have changed the settings to reflect a less sensitive more conservative setting as seen in the second chart. This second chart reflects a long term bullish sentiment, an intermediate term bearish sentiment, and a short term and very short term bullish sentiment as reflected by the background colors. These settings seem more appropriate for the current market conditions. That said I see us going higher and testing the recent market highs, Click on charts to enlarge.




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