FROM A GOON TO A GOBLIN
Changes in character are one of the keys to judging whether an important index or your favorite stock is about to make its move. A change in character has nothing to do with penetrating some arbitrary moving average or one of the millions of indicators that exist turning green, blue, purple or a combination of the three. It has everything to do with price and volume.
Price analysis is an endeavor that should be grounded in purity. There is no need to pollute it with indicators that are only derivatives of price. Learn how to interpret price and volume itself. You will be 100 times more successful.
An example of a recent change in character took place in SPRT recently. Let's take a look:
click chart to enlarge
SPRT
