Cheetum Curve Update (3/11)

At the end of the month, I'll post the current Coppock Curve. In the meantime, I have whipped out the Cheetum Curve to get some long-term perspective on the market. Neither one of these curves will predict anything even though they can be strong confirmation on the long trend...the very long trend.

This indicator is not related to the CMI buy/sell signals used to trade the QLD and QID although overall results improve when the short term direction (CMI) 'syncs up' with the long term direction (Cheetum Curve)...as it should.




Here's a refresher for the Cheetum Curve from a previous post:

How do you determine buy and sell? Glad you asked. The rules are simple as long as you are not color blind:

1. A cross of the red ROC line over the black moving average line from below when both lines are below the lower blue horizontal line triggers a 'buy' signal.

Solid confirmation occurs when both the red and black lines cross through the zero line and then continue above the upper blue line. A reversal of the red line prior to crossing through the 'zone' would trigger a sell signal as noted by the yellow arrow.

2. A cross of the red line below the bottom horizontal blue line triggers a 'sell' signal. The black moving average line is not used as an indication of a sell.

3. If the lines are in the 'zero' zone (between the blue horizontal lines, continue with the previous trend. In other words, if they are in the zone, leave 'em alone.

Obviously, with only eight signals triggered in the last 20 years, this oscillator is only useful for those who are looking for an extended time frame. Let's see if these rules hold up over the next few months. If that red line drops like a rock through the bottom blue horizontal line, I'll have my finger on the sell button.

I still give equal weight to buy and sell signals with the Cheetum Curve but tend to believe only buy signals from the Coppock Curve. Again, to repeat myself, the tide will have already turned (buy to sell and vise versa) before these types of indicators change direction.

Related posts:

Coppock Curve Cheetum Curve Unite

Coppock Curve Has Spoken

Price Earning Ratio as Leading Indicator