NZSX50 Chart with multiple "Medium-term" indicators.
Here is a chart that compares signals from 6 separate indicators :-
Relative Momentum Index
Relative Strength Index
Slow Stochastic Oscillator
Directional Movement Indicator
Exponential Moving Average
Market Strength Indicator.
In spite of their very different formulae, these indicators have been giving virtually identical signals.
Why use such "medium-term" indicators at all? Because they give good early warning of any incipient weakness developing, getting you out of the market earlier than long-term indicators when the market weakens, and getting you back in again earlier than long-term indicators.
It is easy to see that none are anywhere near indicating a need for caution.
In the immortal words of Alfred E. Newman, What? me worry???
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