There are a wide range of technical indicators that traders and investors can use to determine the market?s trend and to pick stocks. I have found that the most effective combination of indicators use either different data or non-correlated data.
In this week?s lesson, I want to demonstrate how two non-related technical tools can help you determine changes in the market?s trend. This first is the McClellan oscillator, which was developed by Sherman and Marian McClellan and is calculated from the A/D data. The second is a sentiment indicator, the Total Put/Call ratio (P/C), which measures the volume of puts traded divided by the volume in calls. It can be downloaded free from the CBOE.
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