Trading Models DecisionPoint Trend Model DecisionPoint's mechanical trend-based approach to trading. Trading StrategieWelcome to Part our Technical Analysis 101 Series – “Dominate the Markets with Smart Technical Analysis”!11 Bollinger Band…
The Pre-Holiday Effect There have been nine holidays in the last century when the Exchanges have customarily closed. Historical research shows that stock prices often behave in a specific manner in each of the two trading days preceding these holidays. By becoming aware of…
Sector Rotation Analysis Based on the relative performance of the eleven S&P Sector SPDR ETFs, Sector Rotation Analysis aims to connect the stock market's current strengths and weaknesses with the overall business cycle. Once the strong and weak sectors have been determined, you may compare the results to a theoretical business cycle chart to potentially identify the market's business cycle stage. You may then use that information to forecast which industries will have the most growth in the upcoming weeks and months. The Business Cycle Sector Rotation Analysis Stage 1 shows the economy contracting and bonds turning up as interest rates decline. Economic weakness favors loose…
Bottom Fisher A market momentum indicator designed to help identify market bottoms. Introduction It should go without saying that a market's greatest potential emerges immediately following its lowest point. This happens when the momentum of all the constituents in a market average or any series with many components shifts from a downward trend below zero to a downward trend below zero. The change from the "winter" to the "spring" posture in Figure 1 symbolizes this. In this instance, momentum could be shown by a ROC or an RSI. However, a smooth momentum series, like a MACD or stochastics, is ideal since we are looking for a series that provides a somewhat intentional shift of direction. The Bottom Fisher actually makes use of the KST. Figure 1 The difference between the number of Dow stocks with short-term (daily) KSTs in the winter and spring positions, respectively, is used to compute the Bottom Fisher.The indicator decreases when more and more groups encounter winter as opposed to spring.The indicator bottoms and a purchase signal is produced when this divergence begins to reverse upward. To ensure that fluctuations in the indicator match those of the Dow, S&P, or any other market average to which it is being compared, the real data is shown inversely. The indicator must drop to one of the oversold levels shown in Chart 1 and then reverse for a reversal to be considered. As demonstrated by the May 2012 signal in the chart below, these indications are typically dependable but far from flawless. Waiting for a positive MA crossing of the!PRBFISH is therefore a more cautious strategy. In this instance, a 10-day SMA is the MA in use. Nevertheless, reversals that form at or below the 11 oversold level are typically slow and intentional, with minimal false upside reversals. Chart…
In the world of trading and investing, market patterns often tell us stories — stories of fear, greed, and opportunity. Among these timeless chart formations, Double Top and Double Bottom…
Introduction Which way is the market moving? How far up or down will it go? And when will it go the other way? These are the basic concerns of the…
Using Market Mood Index to predict Nifty returns in the 3 months following the Extreme Fear zone. The purpose of MMI is to assist investors in better timing their investments and trades. It is a sentiment indicator that gauges the state of the market right now. The indicator uses a scale of 0 to 100 to indicate the mood of the market. Focusing on zones—buying in high extreme fear (values below 20) and selling in high extreme greed (values above 80)—rather than worrying about the precise value of the MMI is the approach. All of the information regarding MMI and the various feeling zones is available here. This post's goal is to evaluate MMI's ability to forecast market returns in the three months that follow the extreme fear zone. Test Identify the dates when MMI entered extreme…
Introduction With climate change and sustainability dominating global conversations, investors are shifting toward more responsible choices. Green investing—also known as sustainable or ESG investing—is no longer just a trend. It…
How to Pick a Timeframe The timeframe for creating a chart depends on the compression of the data—intraday, daily, weekly, monthly, quarterly, or annual. The less compressed the data, the…
IntroductionBuilding long-term wealth in 2025 requires careful planning, disciplined investing, and strategic allocation of resources. A well-structured wealth plan helps you achieve financial goals, secure your future, and grow your…