Adding Waves
Today (8/3) is being described by Yahoo! Finance as a day when markets are "kept in check" by "mixed earnings and uninspiring data"!
Let us take a look at the charts of NASDAQ Composite at 2:35pm to get the technical analysis view.
We can see that the upward crossing point of the Pink and Black (top left panel) was neutralized by the downward crossing point of Intraday Model (brown) and Daily model (gold) in the bottom left panel. Also notice the downward movement of the slower Blue oscillator in the bottom right panel. Indicated on this panel are two points of seemingly "sluggish" behavior from the Blue oscillator.
Our 4-panel system with the different oscillators have been created to provide fast & easy visual analysis of the situation. We've already discussed the on-screen summation of different components to form the Red (=Black + Blue) and Pink (=Green+Violet) oscillators.
Actually some of these components themselves have hidden components. These hidden components have very similar periods and amplitudes so they are displayed only through their sum instead of crowding up the display. But sometimes the phase difference between these components create the interesting "sluggish" behavior. This aspect of sine wave summation is illustrated in the figure below where the Red is the sum of Black and Green sine waves.
