I hate oscillators.

Not because sometimes they get overbought and then just stay overbought for a long time, as they did this past January and February, or because sometimes they get oversold and then just stay oversold for a long time, as they did in 2008. That is merely a reflection of an unusually powerful underlying trend.

No, the reason I hate oscillators is because even when they get overbought and then turn down fairly quickly, like they’re supposed to do, and even when they’re only halfway back to oversold territory, which is the most vulnerable part of the recycling process (and which is where they were Thursday night), the market can still respond by staging the second-biggest advance of the year.

I just hate oscillators.

(The oscillator I use, by the way, is very, very similar to the one Lowry’s has used successfully for decades. If you want to re-create it on Decision Point, use their Full Stochastics indicator with the values of 12, 8 and 8.)

If you go to the line that says "Forum » Deemer On Technical Analysis » Book Discussion Forum » I Hate Oscillators" (it's in blue) and click on "Book Discussion Forum" it will take you to the list of topics. Each post on the Forum is listed there. We set the Forum up so the posts were displayed by topic rather than chronologically to make it easier to follow a particular topic since some of them (like the Four-Year Cycle) may stay open by months.

Also, when you log in, you should see an icon that flags topics where posts have been made since your last visit.

Hope this helps...

Walter Deemer