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The Stochastic Oscillator- A Momentum Technical Indicator

When using the covered call writing strategy, it is critical to select stocks with positive price momentum. This will increase the probability of maximizing our profits. One of the technical indicators included in the BCI methodology is the stochastic oscillator. The stochastic oscillator is a momentum indicator that shows the location of the current closing [...]

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MACD Histogram: A Lagging and Momentum Technical Indicator: Part II

MACD Histogram: A Lagging and Momentum Technical Indicator: Part II

This week’s article is a follow-up to last week’s discussion of the MACD technical indicator. In this week’s column I will discuss the MACD histogram which represents the difference between the MACD and its trigger, the 9-d EMA. It is plotted in the form of a histogram (bar graph) rendering divergences and centerline crossover easily identified. Bullish histogram [...]

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MACD: A Lagging and Momentum Technical Indicator: Part I

MACD: A Lagging and Momentum Technical Indicator: Part I

Technical analysis is as much an art as it is a science. No one parameter, by itself, will allow us to make our buy/sell decisions. However, when all the indicators are used together, they paint a picture that is critical to maximizing our covered call success. One of the most simple and reliable of these [...]

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