My turn and you better believe I'm a dummie. I understand what Hingdog is saying but I just don't have the confidence to open a trade based purely off the price action. Either I don't spend enough time watching the tape roll through to determine whether or not it's distribution or accumulation or I've been brought up to approach decision making by using a combination of things. All of my entries and exits are based off a combination of indicators, kind of like getting all of your ducks in a row. And this is meaningless to the topic but I actually enjoy using the indicators and would be bored stiff if just monitoring PA. But that's just me and we all trade differently. We have a small group of 5 now all trading full time and communicating live, it's been so important to bounce probabilities off each other as 4 of the 5 all use different technicals and indicators. Not sure what would happen if we only used PA, hey we might be more profitable? But wouldn't be as much fun.
Now for the Awesome Oscillator. Longy I've done a bit of work with this one a while back testing it's function and backtesting it's reliability and it was great. Plus for the folks who just want to do a quick overview to see the state of play of a stock they've heard of then it's a quick way of establishing if a stock is in bullish or bearish mode. But then I worked out that is was giving me similar signals as what MACD gives me and MACD gives me added things therefore AO got bumped.
Looking at the lower chart, you can see that where the AO began to improve was exactly when MACD crossed to the positive and also where the SP crossed above the 8ema (all circled). Also worth noting was now there's a cross from bearish to bullish on the OA, the SP had just renewed it's relationship with the support now resistance zone I've been banging on about for a while.
See how the combinations can work out?
By the way, here's your AO on a 30min / hourly chart, been on the bullish side for a while eh?
Also worth noting is that my intraday charts only have an 8/20 ema indicators on them with volume below. It's all I need when scalping for a wage.
Cheers
CU6 Price at posting:
$2.60 Sentiment: None Disclosure: Not Held
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