Medium Term Technical Analysis

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McClellan Indicators

The McClellan Summation index shown as a white line is a good medium term indicator. It is a moving average of the more volatile McClellan Oscillator shown at the bottom as a green and red market indicator. Turning from green to red is bearish and red to green is bullish especially when confirmed by a rising or falling Summation white line.

% above 50 and 200 day MA

These indicators shows the participation rate in a bullish and bearish move. They will often turn ahead of price as the last move in a trend is done using a small share of all issues

% on a P&F buy signal

Similarly the same percentage can be calculated from Point and Figure charts that show how strong a bullish or bearish trend is. These two are what we call participation indexes and are useful to measure the strength of a trend as they often turn ahead of price.

Cumulative Highs

The cumulative new highs are a great way to detect medium term trend changes. A rising line and top green color are an indication of a bullish trend