Comparing The Momentums Of Stock Market Indexes, Part 2 by Vitali Apirine
Last month in part 1, we looked at using an oscillator based on momentum to compare the momentums of two markets on a chart for insights into those markets. In this part, well look at what centerline crossovers tell us about the state of the overall stock market when we compare the momentums of stock indexes.
Comparing the momentums of two different indexes on the same graph can be useful. Traders can look for momentum crossovers, centerline crossovers, signal line crossovers, and divergences to help generate signals ...