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Written by Jim Patterson
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Wednesday, 10 October 2007 |
Is the market going up, topping, going down, or bottoming?
This is the basic question we need to answer on a regular basis. The catch is the answer isn't always cut and dry. Typically prices will go up, top, go down, then bottom and the cycle starts all over again. But, we can view this cycles within a myriad of time frames from minutes to months. First you must understand which time frame is most important to your style of trading.
The TTO Daily report is focused on the "near-term" meaning what we expect over the next two to five days and the next two to six weeks. To sort out the answers we employ a number of technique, methodologies, and propritary market metrics.
Tools We Use:
- Methods we Employ:
- Basic Overbough / Oversold analysis based on the market internals
- Hurst Cycles (Very short-term trading cycles)
- Gann Trends (Daily, 3-Day, Weekly, Monthly, Quarterly)
- Longer-term cycles (aka The Bradley Cycle)
- Seasonal Cycles based on 110 years of market history
- Elliott Wave Cycles
- Patterson Relative Strength (PRS) and the PRS Time Plane
- Propritary Signals:
- The "Rare Buy" signal
- HL-B Buy Signal
- HL-S Buy Signal
- The PRS Time Plane Signals (long-term market condition signal)
- LIB Indicators (Lightening in a Bottle)
The above list encompases the bulk of our analytical approach. However,
we are by no means limited to any set of tactics. Over time I have
found that certain approaches yield a consistent result and that is
what we are most concerned with, consistency.
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Last Updated ( Wednesday, 10 October 2007 )
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