(2018-10-24, 07:50 PM)isatrader Wrote: I use the 200 day plot the same way as the Momentum Index, in that crosses below the zero line or a break down from an established long term range towards the zero line are things to take note of, as it is a long term indicator. So yes, is also used for confirmation purposes as it is often one of the last things to break down.

The standard (12,26,9) MACD line chart is the 12-day Exponential Moving Average (EMA) less the 26-day EMA, with a 9 signal line. So the '1,200,1' MACD is the 1 day Exponential Moving Average (EMA) less the 200-day EMA. So it is a little different than the plot of the price minus the 200 day MA, as that uses a simple day MA and not the Exponential Moving Average. But the difference is fairly minor, so could probably lose it.

(2018-10-24, 09:46 PM)isatrader Wrote:

(2018-10-24, 09:27 PM)gbarbs Wrote: I read SA some time after the 2009 bottom and since then, I don't recall the Chapter 8 indicators being so decidedly negative.  Looks like nearly all boxes are checked and it's time to tighten things up and look for shorts.  The MI has not crossed 0 yet but is headed there and has a strong divergence.  The Dow feels like its about to fall off a cliff, if it already hasn't.

Not seeing any panic yet, so think that might start to set in and we could get the flush for a short term bottom, and then a volatile relief rally, before the market makes any firm decisions on the general trend direction it wants to take. Personally, I've been waiting for this for ages, as the best time to buy is always when all the time scales of the market breadth indicators are recovering from the bottom zones, which they are only just reaching, and that generally only happens once every 2 or 3 years or so. So I'm going to be watching the breadth closely, but doubt I'll be doing any shorting personally, as I've never been able to well. So if start saying I'm going to then that's definitely a sign that it's a bottom!

Quote:I read SA some time after the 2009 bottom and since then, I don't recall the Chapter 8 indicators being so decidedly negative. Looks like nearly all boxes are checked and it's time to tighten things up and look for shorts. The MI has not crossed 0 yet but is headed there and has a strong divergence. The Dow feels like its about to fall off a cliff, if it already hasn't.

(2018-10-25, 12:28 AM)kero Wrote:

Quote:I read SA some time after the 2009 bottom and since then, I don't recall the Chapter 8 indicators being so decidedly negative.  Looks like nearly all boxes are checked and it's time to tighten things up and look for shorts.  The MI has not crossed 0 yet but is headed there and has a strong divergence.  The Dow feels like its about to fall off a cliff, if it already hasn't.

NHNL was worst in 2015. Momentum, as you said, isn't in the negative zone and there hasn't been any divergence on the ADline. And all major breakdowns since 1929 have been preceded by a divergence on the AD-line (included). The divergence always lasted at least for one and a half month (1937).

(2018-10-24, 09:46 PM)isatrader Wrote:

(2018-10-24, 09:27 PM)gbarbs Wrote: I read SA some time after the 2009 bottom and since then, I don't recall the Chapter 8 indicators being so decidedly negative.  Looks like nearly all boxes are checked and it's time to tighten things up and look for shorts.  The MI has not crossed 0 yet but is headed there and has a strong divergence.  The Dow feels like its about to fall off a cliff, if it already hasn't.

Not seeing any panic yet, so think that might start to set in and we could get the flush for a short term bottom, and then a volatile relief rally, before the market makes any firm decisions on the general trend direction it wants to take. Personally, I've been waiting for this for ages, as the best time to buy is always when all the time scales of the market breadth indicators are recovering from the bottom zones, which they are only just reaching, and that generally only happens once every 2 or 3 years or so. So I'm going to be watching the breadth closely, but doubt I'll be doing any shorting personally, as I've never been able to well. So if start saying I'm going to then that's definitely a sign that it's a bottom!