The Detrended Price Oscillator has several uses and interpretations, primarily designed to take advantage of overbought and oversold conditions within part of a large trend: One interpretation is to identify past oversold and overbought conditions in the price chart, and use that as a baseline for what is considered overbought and oversold. For example, let’s say … [Read more...]
Detrended Price Oscillator:Basic Concept
The Detrended Price Oscillator attempts to filter out trend in order to focus on the underlying cycles of price movement. To accomplish this, the moving average (generally 14-period) becomes a straight line and price variation above and below the moving average becomes the Price Oscillator. The Detrended Price Oscillator technical indicator can show overbought or oversold … [Read more...]
Demand Index : Application & Charts
Mr. Sibbet defined six "rules" for the Demand Index: 1. A divergence between the Demand Index and prices suggests an approaching weakness in price. 2. Prices often rally to new highs following an extreme peak in the Demand Index (the Index is performing as a leading indicator). 3. Higher prices with a lower Demand Index peak usually coincides with an important top (the … [Read more...]
Demand Index : The Concept
The Demand Index is a combination of price and volume that appears to provide predictions of price changes. There are 6 rules when using the demand index:- weakness in price follows divergence between the demand index and price; after extreme peaks in the demand index, prices usually rally to new highs; tops are signalled by high prices and low demand index values; if the … [Read more...]
Application Of Correlation Index
This index reflects the market view of the future level of the market portfolio diversification. This study proposes an innovative methodology for backing-out implied correlation measures from index options.The methodology is applied to the Dow Jones Industrial Average index and the statistical properties and the dynamics of the proposed implied correlation measure are … [Read more...]