Detecting market tops and bottoms

[chasdn]

Hi Tom

You added a variation to Vess' "Trading main bullish main Bullish Percentage Indexes" by adding Bollinger Bands to determine an oversold condition. I will watch this variation.

Quoting from Vess, "I have further smoothed the indicator with a 20-day EMA and have drawn (somewhat arbitrarily) overbought and oversold levels for it. It is supposed to be traded like this - Buy/Cover when the indicator crosses above its 20-day EMA after having fallen below the oversold (green) line; Sell/Short when the indiector crosses below its 20-day EMA after having rised above the overbought (red) line."

We are currently in the oversold area and should be watched closely for a crossover (20-day). This also could be used in conjunction with the $NASI which Vess has also posted.

Good Trading

Chasdn