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Market Condition Indicators Guide

This document provides an overview of how different market indicators perform under various market conditions, including bull, bear, trading to bull, and trading to bear markets. It assigns color codes to indicate whether each indicator is excellent (green), requires caution (yellow), is okay but not great (white), or is no good (red) based on the current market trend. The indicators covered include moving averages, relative strength, oscillators, volume indicators, charts, and other technical analysis tools. The document aims to help traders understand which indicators provide the most reliable signals for entries and exits depending on the prevailing market environment.

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brijeshagra
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303 views1 page

Market Condition Indicators Guide

This document provides an overview of how different market indicators perform under various market conditions, including bull, bear, trading to bull, and trading to bear markets. It assigns color codes to indicate whether each indicator is excellent (green), requires caution (yellow), is okay but not great (white), or is no good (red) based on the current market trend. The indicators covered include moving averages, relative strength, oscillators, volume indicators, charts, and other technical analysis tools. The document aims to help traders understand which indicators provide the most reliable signals for entries and exits depending on the prevailing market environment.

Uploaded by

brijeshagra
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
  • Indicators in Market Conditions: Presents a comprehensive table of indicators used to assess market conditions across different sectors, with conditions color-coded for quick analysis.

Indicators in Market Conditions

Trading Market Trending Markets Changing Markets


Comments
Bull Bear Trading to Bull Trading to Bear Bull to Trading Bear to Trading
Moving Many false breakouts Valid breakouts and Valid breakouts and Excellent Excellent behavior Excellent behavior Excellent behavior
Averages and whipsaw action continuous continuous behavior
confirmation confirmation
Relative OB/OS indication Skewed number of Skewed number of Increasing signals Increasing Equal number of Equal number of
Strength excellent signals to more signals to more to OB frequency of OS OB/OS signals OB/OS signals
overbought overbought signals from OB skew from OB skew

Percentage R OB/OS signals are False OB signals False OB signals Valid signals give Valid signals give False OS to valid False OS to valid
valid valid. Use modified valid. Use modified way to false OB way to false OB signals signals
OS OS
Oscillators OB/OS signals are False OB signals False OB signals Valid signals give Valid signals give False OS to valid False OS to valid
valid valid if using valid if using way to false OB way to false OB signals signals
modified OS modified OS
Stochastics Crossovers OB and Crossovers from OS Crossovers from OS Crossovers of Crossovers of Only OS area Only OS area
OS are valid only are valid only are valid OB/OS valid to OB/OS valid to crossovers are crossovers are
only OS only OS indicators valid to both valid to both
indicators valid valid OB/OS valid OB/OS valid

Point and Figure False breakouts Valid breakouts Valid breakouts Can project Can project counts Cannot forecast Cannot forecast
whipsaw action counts to likely to likely bottoms
tops

Market Profile Normal distribution Can observe and tell Can observe and tell Can see buildup Can see buildup of Great appearance Great appearance
upside breakouts upside breakouts of buying buying pressure of non trend days of non trend days
pressure

Tic Volume Very good Can use to possibly Valid but impractical Excellent Too late to signal Flattening of OBV Flattening of OBV
accumulation pyramid signals accumulation volume distribution breakouts breakouts
indicator indicators

On balance Very good Too long to use to Valid but impractical Excellent Too late to signal Flattening of OBV Flattening of OBV
volume accumulation pyramid signals accumulation volume distribution breakouts breakouts
indicator indicators

Bar Charts Valid, recognizable Valid, recognizable Valid, recognizable Reversal patterns Reversal patterns Reversal patterns Reversal patterns
patterns trend lines, channels trend lines, channels valid valid valid valid
Astromical No good Not applicable Not applicable Excellent turning Excellent turning Excellent turning Excellent turning
Cycles points points points points
Elliott Wave Hared to show Can project market Can project market Probability can be Probability can be Probability can be Probability can be
Theory beginning and end – to take out previous to take out previous determined that determined that determined that determined that
just that it is high lows this will happen this will happen this will happen this will happen
occurring

Gann Analysis Whipsaws Long for the up Short for the down Can get you long Can get you long Whipsaw first then Whipsaw first then
move move but whipsawed but whipsawed profits profits
first first

Green - Excelent indicator


Red - No Good
Yellow - Okay but use caution 06/07/2011 06:20:24 Page1 of 1
White - Okay but not great

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