Tuesday, September 27, 2022
HomeStockThis Is What Overbought Appears to be like Like | DecisionPoint

This Is What Overbought Appears to be like Like | DecisionPoint


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It occurred to me that a few of our major indicators have created a teachable second. Particularly, our short-term and intermediate-term indicators are each at pretty excessive overbought ranges, and now is an effective time to speak about what meaning.

The Swenlin Buying and selling Oscillators for breadth and quantity (STO-B and STO-V) are close to the highest of their regular vary, and that often coincides with short-term worth tops. The IT Breadth and Quantity Momentum Oscillators (ITBM and ITVM) are additionally close to the highest of their regular ranges, and that usually coincides with intermediate-term worth tops. With indicators from each time frames at overbought ranges, there’s robust technical strain for costs to make a noticeable decline.

Conclusion: This situation happens about each two to a few months (see the purple, downward pointing arrows for earlier occasions), and it’s pretty dependable as a prime warning. Whereas all 4 indicators are nonetheless rising, they’re fairly prolonged, so I might anticipate a worth prime quickly, most likely this week. Not assured, simply probably.



Technical Evaluation is a windsock, not a crystal ball. –Carl Swenlin


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Value Momentum Oscillator (PMO)

On Steadiness Quantity

Swenlin Buying and selling Oscillators (STO-B and STO-V)

ITBM and ITVM

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Bear Market Guidelines


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Carl Swenlin

In regards to the creator:
is a veteran technical analyst who has been actively engaged in market evaluation since 1981. A pioneer within the creation of on-line technical sources, he was president and founding father of DecisionPoint.com, one of many premier market timing and technical evaluation web sites on the net. DecisionPoint makes a speciality of inventory market indicators and charting. Since DecisionPoint merged with StockCharts.com in 2013, Carl has served a consulting technical analyst and weblog contributor.
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