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20DMF
The 20DMF is still in a Buy mode, but has changed its internal status last Thursday.
We indeed went from a "Bought protected 30" mode to a "Bought" mode.
This transition occurs when the MF closes above the 0 + Porosity level = 0.11% or crosses above the 0.176% level during the trading day.
On Thursday, at the close, the RT system should have registered this change, because we closed higher than 0.11%but it did not. This error has been corrected. We will open on a "Bought" mode.
[U]What is the difference between the two modes?[/U]
When in a "Bought protected 30" mode, the 20DMF can issue a short signal only when the OBOS closes below -30.
A "Bought protected 30" mode is a "forced buy" mode due to a strong price uptrend that is weakly supported by the MF.
However, in a "Bought" mode, the 20DMF issues a short signal when the MF indicator itself closes below -0.11% AND the Cumulative Tick is below its average. A "Bought" mode indicates that the price uptrend has gained enough MF support to make us suppose that a longer uptrend can be expected. However, a fall back below the -porosity level on a negative Cumulative tick would trigger a short signal.
Pascal
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