This important technical indicator is not enough to pronounce a complete and unmistakable trend change.
You also should not base your buy and sell decisions solely on one fundamental or technical indicator.
It uses a technical indicator that tracks market momentum reversals to better identify the entries and exits.
My seasonal strategy will give its re-entry sometime between October 16 and the end of November, depending on what the additional technical indicator I use says at the time.
It maintains the mechanical aspects of Sell in May, avoiding emotional input, but incorporates a simple and well-known short-term technical indicator, MACD, to identify whether the market is still in correction mode when the entry date arrives in the fall, and whether it is still in rally mode when the calendar exit date arrives in the spring.
FORBES: Sell In May Could Still Come Into Play But Don't Bail Now
So there are ways, or at least one way, to tinker with seasonality, by incorporating a technical momentum indicator.
FORBES: Sell In May Could Still Come Into Play But Don't Bail Now
We define overbought territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100.
FORBES: Enterprise Products Partners (EPD) Shares Enter Overbought Territory
We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100.
One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100.
Though it had not been invented yet, one of my favorite technical tools, the on-balance volume (OBV) indicator, which was developed by Joe Granville, gave some very interesting signals.
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