Relative strength, stochastics, and on-balance volume as a turning-point stack

Cross-checking the same price history

Several independent oscillator and volume readings can be run on the same price history so candidate turning points are cross-checked instead of being accepted from a single filter.

A confirmation stack applies several independent readings to the same turning-point candidates so agreement, not any single print, grades the call.

Weekly and daily relative strength

Relative strength index is a bounded oscillator of recent closes over a fixed lookback, read on weekly and daily bars for trend-line breaks and price-oscillator divergence.

A weekly relative strength index can be built over a 10-week window, with ordinary trend lines drawn on an established oscillator move and a break of those lines treated as confirmation that direction has changed.

A daily relative strength index can be built over an arbitrary 10-day window, with divergence between price and the oscillator at highs or lows treated as the main warning of a new direction. Divergence is a mismatch between a new price extreme and a failing extreme on the oscillator, treated as a warning of a possible new direction.

Weekly and daily smoothed stochastics

A stochastic oscillator is a smoothed oscillator of where the close sits in a recent high-low range, treated as a primary filter only after it turns from an extreme.

When a weekly smoothed stochastic is treated as a primary filter, action is deferred until the oscillator turns from an extreme reading.

When a daily smoothed stochastic is treated as a primary filter, entries are deferred until the oscillator reaches a buy or sell extreme and then rolls over in the opposite direction. That daily rule is an extreme-rollover: the stochastic must first reach a stretched reading and then reverse before an entry is considered.

On-balance volume as confirmation

On-balance volume is a cumulative volume series that rises or falls with the close and can be marked with trend lines so a break is read as confirmation that the price trend is changing.

In a strong directional move, on-balance volume tends to form its own trend that can be marked with trend lines, and a break of those lines is read as confirmation that the price trend is changing.

How agreement grades the call

Editorial: the weekly relative strength line break, the daily divergence warning, the weekly stochastic turn from an extreme, the daily extreme-rollover, and the on-balance volume line break are independent checks on the same turning-point candidate, not substitutes for one another. Agreement across those readings grades the call.