how not to miss the trading signal at any time, page-5

Hi Stringtickler,

You are correct to say that the momentum chart posted is of a short term nature as it is based on daily momentum and daily price bars. Also, of course if the price dips, the momentum chart will also shows a dip because the chart has ZERO forecasting elements- it is a HISTORICAL CHART, meant to decipher the immediate historical events that have happened. I would be VERY worried if the momentum chart did not dip if prices pulled back, because it has no prediction and zero forecasting abilities and is a mere technical representation. This, I have spelt out clearly in the opening preliminaries in my post-so that anyone reading the chart will understand the use of the chart.

On the technical analysis or chartist's side, there are technical indicators which are of a longer term nature- such as from the aspect of studying the long term cycles of a stock. Such technical techniques include decomposing the price bars into all the cycles - short term, medium term and long term cycles and studying their related effects, and re-combining them into a composite cycle sum.

I've posted this cycle sum chart of VPG several times in the past, where the longer term cycle sum chart shows we are on a cycle up the entire month of July, trough August till around early September. While the general overall cycle sum trend is up, there are the intermittent cycles pullback and dips, but the overall cycle trend is up.

I've also mentioned in a recent past post that we are currently seeing only the price movements accurring from a short term cycle which is up.

It is the frequent occurrences of these type of misunderstandings on the use of lesser known technical charts that I prefer to discuss events and trading ideas for the best benefit of traders devoid of these accompanying charts, and to post the occassional chart where it is absolutely necessary only to illustrate my position.

Thanks for your feedback.

May the best prices be yours,

dascore