@markos Hi Markos.
I have a Laguerre question for you simply because I need validation.
I have pulled up a BYND daily chart w Laguerre. Looking at the Laguerre, RSI at the bottom for a long downtrend, FE on 10/21 is showing drying up of this trend. I assume the Laguerre takes a few days and about now (although with earnings, not"now") but let's say no earnings, here with these last two candles seems a bottom or if there were no earnings at least the beginning of consolidation. What say you? Is this assumption correct?
Hi @MBF sure, i'll explain what I see, I tend to ramble when it's late, please try to fill in the missing pieces by asking a follow up question. Your assumption is neither correct or incorrect. What are the probabilities? I could be right or I could be wrong. I don't see a bottom. Losing 50 points or Handles in one month is quite crazy. btw, I consulted a Daily and Hourly chart for this.
To me it's about price action before indicators. The Gamma line (yellow) is a signal to buy or not buy. It will be more likely to move when the Gamma line is over 60ish. It may be a consolidation that will start, but with an earnings announcement due Monday AHours and an Expected Move of around $7-8.00 for Monday, I lean on the probabilities and say not yet.
Looking at the price top, you will see that Gamma was also at its bottom. What both of these Bottoming Gamma's mean is, you are correct, the momentum, whether up or down, is running out of steam. The thing we don't know is where it will stop. Just know that at the top, it's charged up and at the bottom it's exhausted. "That's what the Math Professor teaches."
I stay away from any stock that is riding the RSI on the bottom. The time or signal to buy is when the RSI crosses .2 and sell when the Blue RSI crosses below .8. Price action tells us if it's base building or consolidating. From 8-27 to 9-6 the RSILg made a quick trip up and down. Please notice how the price moved up then back from $150.00 to ~$170.00. Whew! now aren't you glad you asked this old man about this?
Addendum: after all of that blather, all I really wanted to emphasize is that beyond the nuances of this excellent indicator, the Gamma line should be considered a secondary signal. Some ORB day traders that have the RSILg on their charts have gamma as a label. I use Daily & Weekly and like to see it.
Hows that answer? My gamma line is around 20 and so is everyone reading this (still), God bless 'em. Time for bed.