Written and copyright © 2008-2013 by Thomas N. Bulkowski. All rights reserved.
This page serves as the gateway to various indicators that I have tested. Below is the list. Yes, it's short because
I don't use many indicators. When considering a trade, I will review the commodity channel index (CCI) and Wilder's
relative strength index (RSI) plus Bollinger bands.
With CCI, it gives very short term trading signals and divergence. RSI also shows
divergence and overbought/oversold signals. Those can be quite timely. Bollinger bands, when narrow, suggest a large price moving
coming. That means higher volatility. Swings between bands also provide information, meaning that when price touches the top
band, it may bounce off and toucher the lower one, and vice versa.
The chart pattern indicator, or CPI, provides market direction information. I find it best to trade with the trend and the
CPI helps with that. If it signals green, I go long. If it signals red, I avoid taking on new, long positions and may take profits
if the chart pattern indicator has just swung from buy (green) to sell (red).
Chart Pattern Indicator. Invented by Thomas Bulkowski, the indicator does a very good job at predicting market turns, but it has several days of lag.
Thus, the indicator is best used as a weekly signaling device only. The current reading of the indicator can be found on the home page, above
Weekly Updates, near the upper left of the page (see the image, as 'Market outlook...') or on most other website pages (as 'CPI...').
Wilder's relative strength index. The page discusses the RSI and tunes the parameters for stocks. The best results come from threshold settings of
20 and 80 with 16 day look back for buys and 14 day look back for sales. Review the tests and pick your own settings.
-- Thomas Bulkowski
Copyright © 2008-2013 by Thomas N. Bulkowski. All rights reserved. Your momma is so fat that when she dances, she makes the band skip.