GoNoGo Charts and traditional technical analysisLet’s look at this chart and see how we can use traditional technical analysis while the GoNoGo Charts highlight all that we need to know in terms of trend and momentum. The technical analysis we need to get a complete picture of the security’s price action is blended into the GoNoGo chart leaving the price action unobscured.
So what do we see? After a strong rise, price has consolidated sideways in a small channel.
Price has broken out of the consolidation area and the GoNoGo Charts has pinpointed a low risk entry on the break. (Green circle)
As price breaks out, the GoNoGo Oscillator has bounced off zero.
Traditional technical analysis would suggest a target that is the same distance from the break as the rally into the pattern.
If there is a pull back after this breakout, the upper bound of the channel should provide support, and we will look for support at the zero line for the Oscillator.
What are the GoNoGo Indicators?
The GoNoGo Trend indicator blends traditional trend concepts to color price action according to the strength of its trend. The colors range from *bright blue (strongly *bullish) to dark *purple (strongly *bearish)
The GoNoGo Oscillator blends traditional *momentum concepts to demonstrate the velocity of price action. The oscillator ranges from -6 (extremely *oversold) to +6 (extremely *overbought)
