INDEX:S1TH   S&P 100 Stocks Above 200-Day Average
821 8 2
I thought I would change the way I analyze S1TH             . Basically,above 100MA is BULLISH and below is BEARISH .
The DPO (50) is used as above 0 is BULLISH and below as BEARISH , it's also used to detect short term DIRECTION(falling/rising), DIVERGENCES and exhaustion spikes. At the moment we seems to have mixed messages.
The INDEX is below the 100MA and the DPO is below 0,but rising.The short term channel is rising but looks to be forming a BEAR FLAG .If the DPO bars start to get longer the index will most likely break to the DOWNSIDE.
I see you are using BBands. You may already know this, but it might provide a different perspective that may help someone. BBands are quite good at displaying a visual reference for what I call market 'expansion' and 'contraction'. Where you wrote low volatility squeeze is a prime example of a market 'contraction' phase. You could even call this consolidation. Point being, the market almost always follows a pattern period of expansion>contraction>expansion> etc, etc. When you do see those tight contraction, (consolidation) areas, you can almost guarantee it will be followed by a larger market move.
Yes I already know this,thanks for your input and well explained.
Could you please post an update on this? The index crossed the MA and DPO is about 0.
nmike MOD charttrader
The index is at the 100MA and at the top of channel resistance.If the DPO makes lower bars and goes below mid point then most likely we will have a correction to the bottom of channel.
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