Another chart showing how important it is to watch the GoNoGo Oscillator’s interaction with the zero line.
The Nikkei 225 Index has been in a “Go” trend as global stocks have rallied since the lows in march. The GoNoGo Trend is showing a little weakness as it is painting pale blue bars and the GoNoGo Oscillator is testing support at zero.
In the lower panel, I have annotated with horizontal lines how well the zero line serves as resistance in a down trend and as support in an uptrend.
Therefore, we will be watching to see if the GoNoGo Oscillator finds support at zero once again, supporting price as it attempts to move higher. If it fails at zero, we expect trouble in the short term for the Nikkei 225.
What are the GoNoGo Indicators?
The GoNoGo Trend indicator blends traditional trend concepts to color price action according to the strength of its trend. The colors range from bright blue (strongly bullish) to dark purple (strongly bearish)
The GoNoGo Oscillator blends traditional momentum concepts to demonstrate the velocity of price action. The oscillator ranges from -6 (extremely oversold) to +6 (extremely overbought)
The Nikkei 225 Index has been in a “Go” trend as global stocks have rallied since the lows in march. The GoNoGo Trend is showing a little weakness as it is painting pale blue bars and the GoNoGo Oscillator is testing support at zero.
In the lower panel, I have annotated with horizontal lines how well the zero line serves as resistance in a down trend and as support in an uptrend.
Therefore, we will be watching to see if the GoNoGo Oscillator finds support at zero once again, supporting price as it attempts to move higher. If it fails at zero, we expect trouble in the short term for the Nikkei 225.
What are the GoNoGo Indicators?
The GoNoGo Trend indicator blends traditional trend concepts to color price action according to the strength of its trend. The colors range from bright blue (strongly bullish) to dark purple (strongly bearish)
The GoNoGo Oscillator blends traditional momentum concepts to demonstrate the velocity of price action. The oscillator ranges from -6 (extremely oversold) to +6 (extremely overbought)