The Market Indicators thread

[treefrog]

What Is a Market Indicator?
Like a technical indicator, a market indicator is a series of data points derived from a formula. In this case, however, the formula for market indicators is applied to the price data for multiple securities within the market, instead of just one security. Price data can come from open, high, low or close points for the securities, their volume, or both. This data is entered into the indicator formula and the data point is produced.

Unlike technical indicators, market indicators are not charted above or below the chart. Market indicators are what is being charted, and as such have their own ticker symbols. There are often many symbols that apply the market indicator formula simply to different markets. For example, the $BPSPX and $BPNDX track the Bullish Percent Index for the S&P 500 and the NASDAQ 100 respectively.

Bullish Percent Index (BPI)
The Bullish Percent Index (BPI) is a popular market breadth indicator that is calculated by dividing the number of stocks in a given group (an exchange, an industry, etc.) that are currently trading with Point and Figure buy signals, by the total number of stocks in that group. Bullish Percent levels that are above 70% are considered overbought, whereas levels below 30% are considered oversold. Strong buy signals occur when the Bullish Percent Index falls below 30% and then reverses up by at least 6%. Conversely, promising sell signals occur when it goes above 70%, and then reverses down by at least 6%.

It is important to note that the Bullish Percent Index is not something that can be applied to a single stock but rather an index that is calculated for a group of stocks.

The most popular version of this chart is the NYSE Bullish Percent ($BPNYA) which is mentioned prominently in Thomas Dorsey's book, Point & Figure Charting, however it is important to remember that the Bullish Percent index can be calculated for any grouping of stocks.

Because the NYSE's Bullish Percent Index is so closely followed, each day we also publish the list of NYSE stocks with P&F buy signals as well as the list of all stocks in the current NYSE "universe". Those lists can be found on our NYSE BPI Components page.

Traditionally, the Bullish Percent indicator is charted on a Point and Figure chart (example) using a 2 point box size. However, the indicator can also be charted and studied using standard charts (example) as well.

more at: http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:introduction_to_mark

 

[treefrog]

Re: XAO Analysis

The NYSE Bullish Percent Index
The NYSE Bullish Percent Index was invented by the estimable market technicians at Chartcraft in 1955 (now known as Investors Intelligence). The NYSE Bullish Percent Index is calculated by reading either a buy or a sell signal from the point and figure chart of each of the 2800+ stocks on the NYSE each evening. (For a review of the P/F technique take a look at this article on Stockcharts.com.) The value of the index represents the percentage of stocks listed on the NYSE that signal a buy. For example, if 2100 stocks signal buy and 700 signal sell, the value of the NYSE Bullish Percent Index is 75. Since it incorporates every NYSE listed company, it is easy to see how useful this index can be.

Bullish Percent gives buy and sell signals just like any other point/figure chart. In fact, the chart of Bullish Percent is always in one of six phases. These six phases determine the underlying market condition and therefore indicate an appropriate trading strategy. Below are the six phases and an explanation of the associated market strategy. Remember, the index is always in only one of the phases.



Bull Confirmed - Bull confirmed is, just as it sounds, the most bullish signal the index emits, giving traders a green light to take on multiple long positions with confidence. In the bull confirmed phase, the Bullish Percent Index has a column of X's on its right edge, and this column must have surpassed the next column of X's over to the left by at least one square. Since a market that is in bull confirmed mode is upwardly trending, directional indicators such as MACD are more appropriate than oscillators during this phase.

Bear Confirmed - Again, just as it sounds, the bear confirmed phase is the most bearish signal the index gives. In this mode, the Bullish Percent Index has a column of 0's on the far right edge of the chart, and this column must surpass the next column of 0's to the left by at least one square down. Since a market in the bear confirmed mode is trending downward, only short positions should be considered during it, and directional indicators are again the weapons of choice.

Bull Correction - The bull correction mode, following only a bull confirmed phase, is a sideways market or a market experiencing a correction after a bull confirmed phase. The chart features a column of 0's on the right edge that has yet to pass the last 0's column. Long positions should be taken with caution because a bull correction can reverse into a bear confirmed. During the bull correction mode, look to oscillators like stochastic for insight into timing trades.

Bear Correction - A market in the bear correction phase, following only a bear confirmed phase, is also a sideways market, and it is experiencing a correction from bear confirmed. A bear correction features a column of X's on the right edge of the chart that fails to surpass the last column of X's. Again, use short positions with caution, and use oscillators instead of directional indicators with the charts.

Bull Alert - The final two phases of the Bullish Percent Index involve overbought or oversold conditions. On the Bullish Percent chart, readings above 70% are considered overbought, and readings below 30% are considered oversold. The bull alert phase is simply a reversal into a new column of X's from below 30% on the chart, and it indicates that the index is oversold and due for a bounce. As soon as the index signals a bull alert, traders can take long positions with caution until the X's cross back above the 30% line.

Bear Alert - A bear alert is simply the opposite of a bull alert, except to signal a Bear Alert, the index must be crossing below the 70% line with a column of 0's. It is important to remember that for a bear alert to signal, the column of 0's must actually cross back below the 70% line. During a bear alert the market is overbought and due for a sell-off. Take short positions with caution until the market reverts back to bull confirmed. During Alert phases it is a good idea to take quick profits (10-15%) because there is a good chance the market will reverse.


Here are some charts showing each of these phases:





Now that you have an idea of how to read the NYSE Bullish Percent Index, take a look at the actual chart and see if you can tell what phase the market is in from this daily chart on the Investor Intelligence website.

http://www.investopedia.com/articles/trading/04/080404.asp

 

[motorway]

The problem with trends is that they end !

that what was needed was some sort of soulless barometer that would become negative at market tops and positive at market bottoms. A contrary indicator that would afford the investor the ability to become less aggressive as the market reached high risk levels and more aggressive when the market reached low risk levels.

We play offense (buy stocks) when we have the ball, and we play defense (protect what we have) when the market has the ball. We look at the chart's scale as the football field. Where the index "is" on the chart (field position) is very important, too.

We consider above 70 percent as a high risk level and below 30 percent a low risk level. Let's see why. When there are more than 70 percent of the stocks underlying the NYSE on Point & Figure buy signals there are no disconcerted investors; just about everyone is making money and the newspapers are as bullish as can be. Earnings estimates are coming in on the money like clockwork.

It is also the point where everyone is in that wants to be in. If a broker called his client with a new recommendation for a stock purchase, the investor's response might be "I love the idea, what stock should I sell to get the money to buy it?" He's already in the market and has no funds to create new demand for this new idea. He is in a situation where he must create supply to have the liquidity to create demand. The net of selling to buy is a wash concerning supply & demand.

The other side of the chart presents opportunity and is found below 30 percent. When there are less than 30 percent of the stocks underlying the NYSE on a Point & Figure buy configuration, everyone is out of the market that wants to be out. The availability of supply to force the market lower is very low at this point. This presents opportunities for buying stocks, while the level above 70 percent presents opportunity to hedge or exercise more caution.

One would not want to buy stocks with unbridled enthusiasm at a Bullish Percent reading of 76 percent. Conversely, the probability of loss is low at a Bullish Percent reading of 26 percent. What this index does is help investors to become defensive when the market is high and become more offensive when the market is low.

So You see why position is prospect ?

eg You ask what are the prospects and I ask what is the position .


Now it has to be integrated with other analysis ( price Volume & Time )

eg on the line chart look at the volume surges

I use the B% as a simple Wyckoff Postion Sheet

Our discussion of Wyckoff's analytical methods have so far concentrated on deductive reasoning to
reach investment or trading conclusions. We first determined the position and trend of the general
market, then the positions and trend of group averages, and finally selected individual stocks based on
their ability to move in harmony with those larger trends.

The opposite approach-inductive reasoning-offers the experienced Wyckoff analyst a valuable way to
double check those conclusions. I emphasize experienced analyst because determining the positions of
individual stocks first and then proceeding to the market and groups requires more skill and judgment, as
well as more analysis time.

To make inductive reasoning easier and to help the deductive analyst make better individual stock
selections, Wyckoff devised a record keeping device in 1916 called the Position Sheet. A Position Sheet
simply keeps track of the potential movements of individual stocks. This helps the Wyckoff analyst
determine which stocks offer the best trading opportunities, judge stocks' turning points, determine group
trends, forecast group movements, and ascertain the trend of the entire market.

The premise behind the Position Sheet is straightforward. Every stock is either bullish, bearish or neutral;
in harmony or out of harmony with the general market's trend. The

B% quotes are from Thomas J. Dorsey
The Wyckoff Quotes are from the book by Jack K.Hutson



The B% is like a calendar.. It forces one out of a linear mode of thinking
when to look for Signs of Weakness
When to esp look for Signs OF Strength

( when to be careful with margin etc When calls and puts could be timely etc )

I think We can see how it is seasonal !


motorway

 

[motorway]

Both forms are useful...

You can see a number of nice divergences on the second chart
The red line ( B% ) , The index and Volume..

yesterday Price tried to go down
But volume was lower and bullish % stayed much the same ..

At the ultimate top
B% made a lower high
Price made a higher high

Very clear divergence from April 2007
Price struggling Up in an expanding Oscillation
B% Falling

. such behaviour ( divergent / inharmonious ) is not sustainable
Such behavior is a red flag that will resolve.

motorway

 

[motorway]

A look at how a stock becomes counted on the B%

On the bar chart the red arrows point to the "last point of supply"

. This is the last point of resistance

The blue arrows point to the "last point of support " ( demand )

Now these points are constantly changing
They are evolving over time.

becoming closer and further apart..

If BHP moves up a little more it will become a "vote" on the B%

The Price will be above the last point of supply
( what chartcraft call a "buy signal" -- maybe )

You can see how that looks on the actual P&F ( 2% x 3 ) That builds the B%

Every stock on the XAO has an equal Vote ( unlike the Cap weighted index )

motorway

 

[Timmy]

Great thread Treefrog and Motorway, thank-you both.

 

[motorway]

http://208.149.108.6/cgi-bin/foxweb.exe/fwuniv?email=&lesson=4&doc=index4_2.html

hope that link works.....

Those interested will find a lesson on B% charts


Here is another one to ponder

% of stocks above their 10 week mov averages

One of the criticisms often leveled against technical analysis is that charts, in a very general sense, look best at the top and worst at the bottom. Obviously, it would be far more valuable if charts looked their worst at the top and their best at the bottom.

motorway

 

[motorway]

Wrong chart

The one above is % making new highs

here is the % above their 50 day mov average

motorway

 

[treefrog]

appreciate the plain english speak motorway
I take it that your platform doesn't give %B for other aussie indexes such as banks, industrials, miners etc but just for the XAO

if so, the B% may help if only trading the XAO, but early indication in the different sectors is usually the best information for managing stocks held in those sectors

always good to have 20/20 hindsight but will include a bit of foresight as well in the next bit
first the hindsight:
common factors for the following weekly charts are;
the Linear regression indicator of 30
the relevant bull run for each sector since early 03
the fibonacci levels applied to the start and finish of the bull runs to foresee potential support levels

Utilities index gave the first SELL signal at week 21 - it was a total uncontested reversal - ie no double top - and it is still heading south
Financials next at w23 but the bulls were having none of it - not their beloved banks!! After the bulls ran out of puff (and money) it was all downhill quickly - 50% retraced at this time
Industrials next at w27 - but a DT resulted to confirm the dirrectional change as for the financials
The XJO/XAO didn't give a sell signal until w30
So what?? well there is nothing odd about an increasing number of indexes reversing one after the other until they collectively pull the overall index down
but it is how this might be used to indicate a recovery or further slide that is interesting
that bit of foresight I promised
assume that first down could well be first to recover - provided the others making the current effort to hold the market up aren't starting to falter (mining,energy), that may be the start of a recovery
but at this time they are heading south with a full tank of gas, and holders of stocks (long) in these indexes should ask themselves - why have I been holding stocks for three-six months in a clearly downtrending index
time to consider buying only when the worm turns white and the little green arrow pointing UP appears
and while it is easy from my position in this tree to see, it usually is best to be long in stocks in an index that is rising and short in the ones that are going the other way
and then its always hard to find a reason why I am holding after the trendline has been broken (if you are not partial to worms)

 

[motorway]

appreciate the plain english speak motorway
I take it that your platform doesn't give %B for other aussie indexes such as banks, industrials, miners etc but just for the XAO

if so, the B% may help if only trading the XAO, but early indication in the different sectors is usually the best information for managing stocks held in those sectors

1) Since I posted on B% before and explained it... I assume people interested in it -did read it , know how to use Google etc...So I rather move forward with the discussion. Others I assume are not interested...

2) The first time just before the bottom of the August correction I posted the B% it was a whole market, I then changed it to the top 300... and recently with the XAO.
The software will do a B% of any sector

3) early indication ? Just look at the inharmonious and divergent behavior between the B% and the Index eg the P&F chart in the XAO thread..

Note this quote from Dorsey

It is also the point where everyone is in that wants to be in. If a broker called his client with a new recommendation for a stock purchase, the investor's response might be "I love the idea, what stock should I sell to get the money to buy it?" He's already in the market and has no funds to create new demand for this new idea. He is in a situation where he must create supply to have the liquidity to create demand. The net of selling to buy is a wash concerning supply & demand.

So how do we measure that ?

The How ( character ) of the interaction between Price, volume Time and Position... ( wyckoff )

Deductively by the P V T & Pos of the index itself and then down through sectors groups and stocks

Inductively by the P V T & Pos of individual stocks aggregated together

top down & bottom up


a B% can be constructed from many measures

The most important is the P&F ,,,

eg a B% of above 50day ( or 200 day etc ) average needs a certain amount of time ( as in the earth going round the sun ) to pass...

A B% of P&F just needs points of resistance to become points of support
That happens in it's own time ( when the forces that are drawing the chart make it happen ).. at any time...

Chartcraft and Dorsey tend to use the Chartcraft scaling ( very large stepped box sizes ) This tends to make their B% slower

I have used log scaling this make the B% very sensitive and adaptive
to the changes in support and resistance in each stock..

Each stock gets one vote ( the more stocks in the "election" the better )

Even your sector charts are cap weighted ( making up equal weight "wave charts " is an option )

I divide the B% into winter, spring, summer, autumn, winter

Then the behaviour of the bar charts and the P&F charts either confirms or negates those phases of the b%... Measure P,V, T & Pos to judge the character of demand and supply....

eg

Now, in order for a stock or a market to move upward, so much stock must be bought: This is volume. It will move a certain distance: This is price or price change. And the movement will last for a certain amount of time: This is time. The same process takes place on a downward move.
Richard Wyckoff

So where are We ..... In Winter ( But that is where the beginning is )

B% has already signalled BULL CONFIRMED ...But is atm in BULL CORRECTION

what will happen now is support and resistance will come closer together

"Coiling"

Bull Correction - The bull correction mode, following only a bull confirmed phase, is a sideways market or a market experiencing a correction after a bull confirmed phase. The chart features a column of 0's on the right edge that has yet to pass the last 0's column. Long positions should be taken with caution because a bull correction can reverse into a bear confirmed. During the bull correction mode, look to oscillators like stochastic for insight into timing trades

Chartcraft is a fairly mechanical and more limited P&F methodology
very rule based imo..... ( good rules though ,,, High Clarity )





motorway

 

[treefrog]

=motorway;262412]1) The software will do a B% of any sector

hadn't noticed your posting of different indexes - perhaps because I make more use of the "like activity" sectors and looked for them - appologies for not picking this up in your text.

early indication ? Just look at the inharmonious and divergent behavior between the B% and the Index eg the P&F chart in the XAO thread..

certainly did notice the divergence but felt this was apparent in other chart indicators too and didn't clearly see "stand out" entry and exits with your B%- likely that is a lack of familiarity with it. Will add that divergence was so prolonged it continued across some good "buy" opportunities along the way

Each stock gets one vote ( the more stocks in the "election" the better )

can't say I like this idea - prefer the weighting from capitalisation factored in

So where are We ..... In Winter ( But that is where the beginning is )
B% has already signalled BULL CONFIRMED ...But is atm in BULL CORRECTION
what will happen now is support and resistance will come closer together
"Coiling"

the term "Bull confirmed" says to me "buy with confidence" but looking at the ordinary chart, can only see a smallish oversold bounce followed by consolidation - and yes I realize Bull Correction indicates a modification to consolidation/undecided.
Thanks for your efforts

 

[Timmy]

didn't clearly see "stand out" entry and exits with your B%

Hi treefrog and motorway, thanks again for the thread.

I have read motorway's posts on the B% in the XAO thread and here. I wont profess any expertise on it but would say that it is not the sort of thing that is going to give buy and sell entry and/or exit signals in and of itself? More of a warning that when the B% is very high, or very low, that it is showing a probably irrational degree of bullishness, or bearishness, in the market and that heed should be paid to price and volume movements on the bar/candle chart of the instrument itself to time entry and/or exit.

Also, re divergence, look also to the case where the price moves are mismatched with the B% moves - eg. a high and accelerating B% accompanied by a sluggish price move up. This is not divergence but it is perhaps very instructive of a change in the dynamics of what is going on. Motorway refers to this in his prior post as inharmonius behaviour (the price and B% are out of harmony).

 

[Timmy]

Each stock gets one vote ( the more stocks in the "election" the better )

can't say I like this idea - prefer the weighting from capitalisation factored in

This has me scratching my head ... it takes more money to move a large cap. stock price (generalisation I know, but largely true) than a small, and yet they both get the same value vote. The B% is showing, in my terms, exuberance, irrational or not (thanks Mr. G). Irrational at the highs or lows certainly. Is a 'plus' vote on a smaller cap. stock nevertheless an equal vote to a 'plus' vote on a large cap. stock, when viewed with this purpose in mind? Interesting.

They say you can't step in the same river twice ... does a market cap. weighted index ever measure the same thing twice?

 

[Timmy]

the term "Bull confirmed" says to me "buy with confidence"

And another thing...

Sorry for the hat-trick of posts, just a very good topic.

Treefrog, in your opening post +1 you gave the link to
http://www.investopedia.com/articles/trading/04/080404.asp
where they show a break of a double top on a P&F chart and label it as "Bull Confirmed". I think it is very dangerous to equate "Bull Confirmed" with "buy with confidence", as the next post (from m/way) points out we need to have regard to many other factors than just a simple break of a double top on a point and figure. I think of the case, specifically where there is a break of a double top after a very long column of "x" the market may be well long by then and the break of the top has been triggered so as to enable an easier offloading of some of these longs?

 

[treefrog]

And another thing...

Sorry for the hat-trick of posts, just a very good topic.

Treefrog, in your opening post +1 you gave the link to
http://www.investopedia.com/articles/trading/04/080404.asp
where they show a break of a double top on a P&F chart and label it as "Bull Confirmed". I think it is very dangerous to equate "Bull Confirmed" with "buy with confidence", as the next post (from m/way) points out we need to have regard to many other factors than just a simple break of a double top on a point and figure. I think of the case, specifically where there is a break of a double top after a very long column of "x" the market may be well long by then and the break of the top has been triggered so as to enable an easier offloading of some of these longs?

hmmmmm......going by motorway's definition posted in Jan tim - emphasis mine
Bull Confirmed - Bull confirmed is, just as it sounds, the most bullish signal the index emits, giving traders a green light to take on multiple long positions with confidence. In the bull confirmed phase, the Bullish Percent Index has a column of X's on its right edge, and this column must have surpassed the next column of X's over to the left by at least one square. Since a market that is in bull confirmed mode is upwardly trending, directional indicators such as MACD are more appropriate than oscillators during this phase.

 

[Timmy]

Treefrog - that definition of Bull Confirmed is also given in your post 2 in this thread? Is it from Dorsey's book, webiste, or elsewhere? Regardless, I would be very wary of relying on one input, such as the B% ... or any one input for that matter, as 'giving the green light'.

Motorway points out that the B%

... has to be integrated with other analysis ( price Volume & Time ) ..........

The B% is like a calendar.. It forces one out of a linear mode of thinking
when to look for Signs of Weakness
When to esp look for Signs OF Strength

I think this is really important.




Another thing that occurs to me is that an indicator (like B%, or any other), and of course and more importantly, price itself, do of course switch from one mode to another, and sometimes very quickly indeed. Qualifying B%, or anything else, with analysis of price, vol and Time can be very helpful in assessing the likelihood, and timing, of any switch.

 

[treefrog]

Another thing that occurs to me is that an indicator (like B%, or any other), and of course and more importantly, price itself, do of course switch from one mode to another, and sometimes very quickly indeed. Qualifying B%, or anything else, with analysis of price, vol and Time can be very helpful in assessing the likelihood, and timing, of any switch.

think the B% is probably a good but very limited indicator. Maybe more definate switch signals - I would have to observe it over a longer period of time.
Any half reasonable system should factor in a substantial retrace probability after significant and quick moves - I traded the XJO long back to the 38% fib level, deciding prior that the move down was so solid how could we get a 50% retrace and watched it continue to the 50%fib. This entry was indicated based on a "significantly oversold" reading - the same as the b% indicated
and the indicator I use for this, (overbought/oversold) plus diversion signals and momentum trends is the Chande Momentum Oscillator
so a total of two indicators, LR and CMO and there is nothing additional that the B% appears to add that these two do not give. I can use this on ALL instruments and all timeframes - it is not limited in application to composit indexes.
So KISS - no volume, no time cycles, no seasons, no swapping oscillators for trend followers, no stops - a simple (60/40) system with clear buy/sell signals.
Oh, but do toss in the fib levels to know how far its going in its current dirrection.
The market is just a bus really - have to know which dirrection the one you are about to hop on is going - Up Down or Sideways! Pay your fare, hop on and know when to get off - hopefully with a few of other passenger's fares

 

[motorway]

think the B% is probably a good but very limited indicator

It can have as many uses as you like

It is a starting point to pick stocks to be active in

It is not just about composite indexes

It is about rotation and the flow of money
It is about the bricks not just the building..

without the bricks there is no Building..

Trends sustain themselves by rotation, by money flowing along the "" line of least resistance " rotating between the different themes stocks represent.


I do not regard it has an indicator ( it is more an index )
and while We are using Chartcraft definitions
I do not practice Chartcraft methodology


About the one vote

If We want to understand something eg the health of a Body..

We can look at the body as one thing as a functioning whole
or as made up of functioning parts and systems..
To determine health both approaches have their merits.

Top down .... bottom up

so a total of two indicators, LR and CMO and there is nothing additional that the B% appears to add that these two do not give.

Those two indicators are just the same price information represented in another form as the index... The B% is derived from totally different information.
This is an important point indicators are just the same information as a price series.

A B% is looking at the health of the foundations . It's construction is independent of the indexes price series.

very limited indicator

It is support and resistance
buying pressure and selling pressure
It's use is unlimited...

eg We can look at the stocks that have given a vote
or we can look at those about to vote
or far from voting
we can uses it as a start to see
where is the money flowing
in conjunction with relative strength etc

I can use this on ALL instruments and all time frames - it is not limited in application to composite indexes.

P&F charts do not have time frames

Support and resistance draws the P&F chart not time frames.

B% is applied to a group of stocks... Anything that is of interest
It is not about composite indexes .. Though it can reveal like an X ray the
internal health of an index( you only have to think about it... Like I said in the XAO thread money flows somewhere .... it can not flow out of everything and be sustainable nor can it flow into everything.... see the possibilities )

So KISS - no volume, no time cycles, no seasons, no swapping oscillators for trend followers, no stops - a simple (60/40) system with clear buy/sell signals.

KISS for Me is to deal with the basic reality

of Price, Volume & Time in the context of position

To add anything is to add complexity

There are no time cycles ( there is just duration eg how long does a rally last)
There are no time frames..... there are just price moves of a certain range.

I have never traded a time frame.... only moves

They have a certain price range, they involve a certain amount of volume , They last a certain amount of time.... and they leave the price in a certain position

Once a move is finished a contrary move sets in ..
This is all there is

Anything else is artificial.. complexity

Anything else can be a tool though like bar charts ..
Candles & Bars overlay and cut up the simple reality

The P&F B% is just aggregating all the these buying and selling waves of individual stocks..
It is not the index in another form ( indicator )

Agree the other examples are "indicators" ( They introduce time twice. Once as duration and second as time frame .. This defines for me an indicator from an index)


To understand B% you have to understand P&F


Timmy.... support and resistance are democratic ...that is why one vote one stock...smart money flows where it will...rotation..

Not the wisdom of the crowd
or it's stupidity.. but the keeping in harmony with the smarter money.

For those who asked the questions..

motorway

 

[treefrog]

=motorway;262732]Those two indicators are just the same price information represented in another form as the index... The B% is derived from totally different information.
This is an important point indicators are just the same information as a price series.

in total agreement - but the bottom line is what works simply and reliably

I can use this on ALL instruments and all time frames - it is not limited in application to composite indexes.

sorry, but have difficulty seeing it as usuable on an instrument such as $A/$US after your explanation of needing multiples of those within an instrument

Not the wisdom of the crowd
or it's stupidity.. but the keeping in harmony with the smarter money.

I used to take note of where the smart money was going - studdied COT reports etc and threw them all away agreeing with some rabbit who said 'but you are trading the market and that includes the crowd and their stupidity as well as the smart money'.
In my years in engineering and management, I subscribed to the view that if it couldn't be explained on a single page it should be re-written - I put much effort over my 15 years in trading/investing the markets to end up with the system I mentioned earlier - one page of explanation and one page of charts - hmmmmm, maybe thats two pages.
appreciate your efforts to explain your system motorway - you have put an incredible amount of research and analysis in to develop it.
You would be a lot more confident of your trades whereas I pretty much just follow the bouncing ball (well not quite - do toss in a few fundamentals)

 

[motorway]

sorry, but have difficulty seeing it as usuable on an instrument such as $A/$US after your explanation of needing multiples of those within an instrument

yes the bigger the crowd the more votes to build the picture

and the easier maybe to see the flows ..

Not the wisdom of the crowd
or it's stupidity.. but the keeping in harmony with the smarter money.

appreciate your efforts to explain your system motorway

I will try to update it in the XAO thread when "that ( voting ) behavior changes "


regards
motorway