Momentum goes hand in hand with trend identification. The GoNoGo Oscillator® helps investors understand the velocity of price change, giving valuable information about the strength of a trend and the market’s conviction in it. Strong or increasing momentum provides confirmation of a trend, while decelerating momentum gives the investor a leading indication of weakness and potential reversal of a trend.
OVERBOUGHT & Oversold
GoNoGo Oscillator®, like its sister indicator GoNoGo Trend®, blends several popular momentum ideas together to provide the user with meaningful momentum analysis. As an oscillator, the indicator’s values range above and below zero, from -6 to +6, with extreme positive values being considered overbought and extreme negative values, oversold. The GoNoGo Oscillator’s color features a change from light blue to dark blue when volume is heavier than normal. This provides further insight to the investor at key moments. The chart below is of the S&P 500 spdr and has the GoNoGo oscillator in the lower panel.
When used together, the GoNoGo Trend® and GoNoGo Oscillator® give a robust, complete, technical view of any security’s price action in terms of trend, momentum and even volume.
Improved decision making is what GoNoGo Charts® suite of tools delivers. Those seeking improved risk adjusted returns can incorporate GoNoGo Charts into their investment process alongside a limitless variety of trading strategies and styles. GoNoGo professional research serves to guide both the self-directed investor and experienced financial services professional as they launch their investment ideas, advise clients, or present their thesis on the markets. Are they a Go, or a NoGo?