About targets

Spread the love

[su_row]
[su_column size=”1/1″]target_sample

[T]he target is an instant reading of the price potential energy. When the price serie is trained, the best possible trades are marked with a start and an end, that generates the arrows  that signal market extremes. Then taking the average of the last day of the position and the successive day, the difference for every day of the position  from this value is calculated: for every day there is a percentage af value that still has to be gained until the position has to be terminated. The chart is quite simple, isn’t it? The main idea is that whenever the price is above (or below) or even very near to the target, the movement has finished it’s energy. This is for the ex-post and the training phase.

[/su_column]
[/su_row]

[su_row]
[su_column size=”1/1″]
SPX-da-am-20160121-124730-CCB15982-F13D-438D-B989-1F91B994E95E-3500-24

Now, what about realtime readings? Here is the sample from today. Undoubtly the cyan dots (the targets) are quite confused, but it’s just what the model reads from the never seen before data. Generally speaking, we may note that:

 

  1. usually the target stands on the side of the movement, over the price during the uptrends and below the price during downtrends
  2. targets tend to “converge” toward the reversal areas
  3. by construction the scattered dots marks the most sensible support/resistance areas

In conclusion, the target is a confirmation tool that add an interesting information that can be read from price action inside the model.

[/su_column]

[/su_row]