Friday, August 16, 2013
FOO-BAR & StopLight Signal
All the credit here to Mobius and Lar from the thinkScript Lounge.
The FOO-BAR showed a squeeze building just prior to the move (yellow dots between blue) indicating a coiling of volatility (the Bollinger Bands went inside of the Keltner Channels)
Once the squeeze fired, the StopLight indicator showed: Trend All Down.
CI (Choppiness Index)
Notice the Cyan dots on the FOO-BAR after the move down, just prior to the StopLight turning green...
These indicated an oversold RSI, and the White arrows indicated oversold stochastic.
Two indicators working beautifully in tandem! Also, the MESA Sine Wave showed an ideal reversal level on the string of red dots above the down move. Price came up to it, to the tick, before proceeding lower.
This is an 8 Tick Rangebar Chart