Dr_Roboto

S&P 500 - Cyclic Smoothed RSI with Divergence Indicator

SPCFD:SPX   S&P 500 Index
I took a shot at applying my new combined cRSI and divergence indicator to my recent rising wedge chart for the S&P . It looks to have really good (not perfect) alignment so far. However, it is not very clear about the last week or two. It looks like it is showing a bear flag , but there is no crossover in the MACD yet. It looks bearish to me, but this market likes to be tricky like that.

Info on the chart.
1) Red dotted lines = cRSI crossed back from overbought and crossover in MACD
2) Red solid lines = Bear divergence and crossover in MACD
3) Green dotted lines = cRSI crossed back from oversold and crossover in MACD
4) Green solid lines = Bull divergence and crossover in MACD
5) Black transition = cRSI crossover but NO crossover in MACD

I created a single indicator that combines 1) Cyclic Smoothed RSI and 2) the Divergence indicator (bull, bear).
Please refer to for info on how to use the cRSI indicator.

Comment: I published the script for the "Cyclic Smoothed RSI with Divergence Indicator" if you want to try it. I think you can find it under public scripts.
Comment: Here it is on the 2H.

Comments

Thanks! Would love to try this out. Keep up the good work. At some point, you will either be right and get rich or it will get so bad that even you will feel comfortable going long :)
Reply
Sick perspective. You love playin your own devil's advocate haha.

We both know that MACD has a high probability of getting a X this next week or two ;).
Reply
Dr_Roboto ProfitHarvest
@ProfitHarvest, this market drives me crazy. We all know the economy is broken and the market has been detached from reality for quite some time. I am in a constant internal battle with rationalizing the state of the economy and facts with this irrational bull market. My common sense and experience is telling me this rally is BS and that buying stock at this level is stupid. Yet, the market just keeps going up and I see all those "foolish" bulls making money. It feels like the market wants to correct, but some other ridiculous news headline rallies the market. Seriously, how many times are we going to price in the vaccine or stimulus? Oh wait, earnings are only -20% instead of -25%, rally on! Sorry for the soap box.
+1 Reply
ProfitHarvest Dr_Roboto
@Dr_Roboto, Preach! B)

Yea Bear Capitulation phase is particularly brutal for this one.

If it's any respite, this is by far the most I've seen the bear case align across widely varying TA.
Reply
What’s this bearish nonsense? ;)
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