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technical_indicators:dppmo [2019/06/24 19:39] 127.0.0.1 external edit |
technical_indicators:dppmo [2023/01/25 18:33] (current) jayanthi |
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| The first action is a false PMO top. Major tops are always accompanied by an overbought PMO top, but not all PMO tops signal major price tops. The false top alerts us that a price top is probably just a few weeks away. | The first action is a false PMO top. Major tops are always accompanied by an overbought PMO top, but not all PMO tops signal major price tops. The false top alerts us that a price top is probably just a few weeks away. | ||
| - | Next, we'll see a slightly higher PMO top followed by a crossover sell signal, which is generated when the PMO (blue line) crosses down through its 10-period EMA (green line). When these signals occur at very overbought levels, they may tentatively be taken at face value, but, when they have been preceded by very strong price action, it is possible for prices to make yet another new high, causing the PMO to begin rising again. | + | Next, we'll see a slightly higher PMO top followed by a crossover sell signal, which is generated when the PMO (green line) crosses down through its 10-period EMA (blue line). When these signals occur at very overbought levels, they may tentatively be taken at face value, but, when they have been preceded by very strong price action, it is possible for prices to make yet another new high, causing the PMO to begin rising again. |
| Finally, as prices roll over from the final top, the PMO turns up again, this time topping after just barely "kissing" the underside of the 10-period EMA. Some refer to this as the "kiss of death," but this seems a tad dramatic, so a bear kiss seems more appropriate. Besides, there is a reciprocal formation at important bottoms, and the term "bull kiss" seems more apt than "kiss of life." | Finally, as prices roll over from the final top, the PMO turns up again, this time topping after just barely "kissing" the underside of the 10-period EMA. Some refer to this as the "kiss of death," but this seems a tad dramatic, so a bear kiss seems more appropriate. Besides, there is a reciprocal formation at important bottoms, and the term "bull kiss" seems more apt than "kiss of life." | ||
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| - | For more details on the syntax to use for PMO scans, please see our [[docs>scans:indicators#decisionpoint_price_momentum_oscillator_pmo|Scanning Indicator Reference]] in the Support Center. | + | For more details on the syntax to use for PMO scans, please see our [[https://support.stockcharts.com/doku.php?id=scans:indicators#decisionpoint_price_momentum_oscillator_pmo|Scanning Indicator Reference]] in the Support Center. |