The Traderszone Network

Published in TZ Latest News 13 August, 2014 by The TZ Newswire Staff

Percentage of Stocks Above Their 20/50/200-EMAs Looks Bullish

Our indicators, the Percentage of Stocks Above their 20/50/200EMAs, gives us a view of market internals in three time frames: the 20EMA is short-term, the 50EMA is medium-term, and the 200EMA is long-term. When they have all reached the same extreme on either side of their normal range, we begin to expect a price reversal. Back in June we noted that they had all reached the overbought side of their normal range, which suggested that a price top was in the making. However, we can see how in previous instances prices can drift sideways or higher before the actual price top finally arrives.

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