Indexfor gauging underpriced and overpriced markets,
462
as indicators of bullishness/bearishness, 434
integrating candlesticks with, 583
linearly weighted moving average (LWMA), 440,
442
longitudinal and cross sectional forms, 435
in point-and-figure charts, 619, 620
as price barrier, 460–462
as price cycle filter, 451–452
as price trigger or signal, 454–457
and relative strength measurement, 795–796
running total, 448
simple moving average (SMA), 440, 441, 445
smoothing price action, 454
time adjustments/displacements, 438–439
as trend identifier, 457–460
triangular, 440–442, 443
volume-weighted moving average (VWMA),
445–446, 448
weighting modes, 440–449
Wilder’s averaging, 446–448
Moving averages and market phases, 115–116
MTA CFTE official reading list, 934-935
Multicollinearity, 245, 324, 490–491, 760, 874–875
Multiple bar island reversals, 223, 224
Multiple divergence, 317
Multiple time frames (MTF), 253
Multiple tops and bottoms, 500
Multi-timeframe confirmation, 845
Nearby/nearest contract, 89–91
Negative expectancy, 897, 907, 912
Negative roll yields, 91–92
Nelson, S. A., 45
Nested channels, 160–161
Net accumulated spread, 97
Net open position analytics, 787–788
Neutral day, 662, 668, 670
New high–new low line, 770–771
Next contract, 90
Nominality, principle of, 724
Non price-based volume oscillators, 178–180
Non trend day, 666
Non-confirmation, 273, 274, 275, 288–290, 760,
- See also Divergence
Non-directionally aligned divergence, 291
Non-failure swings, 56–57
Non-mean reverting approach, 12–13
Normal backwardation, 92
Normal contango, 92
Normal distribution, 744
Normal variation day, 667–668
Normalization, 764
Number types, defining, 688
Numerically based overlays, 236, 238, 249–250
NYSE Up/Down Volume indicator, 206, 207
OBOS overextended levels, 241–243, 312, 731
OBV indicator, 448
OHLC data, 67–72
and candlestick formations, 541
price quantization, 67–70
significance of, 70–72
and trend identification, 131–132
Oops entry, 231
Open, high, low, and close information. See OHLC
data
Open interest, 192, 281, 320–322, 349–350,
786–787
Open-close Moving Average Crossover, 455
Opportunity risk, 886
Optimization, 800, 884, 890–891, 915–916,
917–918
Option volume and premium, 787
Options, 174, 192, 787–788
Order entry, 12
Oscillations, 140–141, 143. See also Cycle analysis;
Oscillator analysis
Oscillator analysis, 170, 240–251
dominant half-cycle period, 252–253
equilibrium and zero line crossovers, 243–246
geometrically based overlays, 236, 238, 247–249
input data, 253–255
integrating candlesticks with, 580, 581
lagging indicators, 253
multicollinearity, 245
on multiple timeframes (MTF), 253
numerically based, 249–250
OBOS overextended levels, 241–243, 312, 731
oscillator-on-oscillator, 250–251
price-oscillator divergence, 246–247
signal line crossovers, 246
and trend trading, 255
Oscillator to oscillator divergence, 350–352
Oscillators:
bounded vs. unbounded, 236–237, 238,
241–242, 244
multiple oscillator STF agreement, 874–875
price-oscillator agreements, 870–872
single oscillator MTF agreement, 872–874
Outperformance vs. underperformance, 800–801
Outside bars, 222
Outside day, 223, 225–226
Over the counter (OTC) markets, 7
Overbought and oversold (OBOS) levels. See OBOS
overextended levels
Overconfidence, 819
Overextension, 550, 760–761
Overlay barrier entries, 148
Overlay breakout entries, 148
Overlay indicators, 235–236, 262–265
drop-off effect, 254–255
Floor Trader’s Pivot Points, 263–265
geometrically based, 247–249
horizontaly based, 236, 238, 250, 251Moving averages (continued)