Correlation Analysis as an Effective Overbought/Oversold Oscillator
There's room in this chapter for a short section on another indicator I've found to be useful as a replacement for Levine's DIST oscillator. Like the Stoch-OBV oscillator it too has the advantage of working extremely well even when a primary curve has displaced from price. However, unlike the Stoch-OBV this indicator is tagged to a particular MIDAS curve as Levine intended with the DIST oscillator. Figure 17.7 is a 5m chart of the DAX September 2010 futures showing a five-day downtrend. A primary MIDAS resistance curve is launched from the start of the trend highlighted by (1). As expected, it quickly displaces from price and only interacts with it on two further occasions highlighted ...
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