A daytrading reader ask about some features of the site. Here the reply:
Stamina indicator is designed to evaluate how much energy is implicit in market conditions to complete the current move. It is somethig as the mirror of the Target. It is calculated separately positive (for long position) and negative (for short ones). So, the present values of 0.214/0 means that the market has (should have) 21.4% of the move ahead toward a high, and 0% in the downward direction.
Position indicator is a pattern recognition tool, it fires 1 (or -1) when it detects the condition for long position opening and 0 when the position is supposed to be closed. A 0.5 value is the standard “stay long” suggestion (-0.5 if the position is short). Other values inbetween define the “Add to position” and the “Reaching top” (or bottom) signals, usually with a couple of days anticipation.
The model is totally unbiased, meaning that there is no assumptions about current conditions: it evaluates in total autonomy the market status, and there is no “bullish or medium calculation”. It is free to evaluate, just following the training. Neural networks need to be trained, that means that you have to tell them how to interprete historical data. Then, they go on their own legs.
Finally, please note: the model correlates many different inputs (on daily timeframe, they are now 78) that goes from stock market indices around the world, to rates, commodities, bonds, currencies and economic and financial indices. The resulting neural network is huge (many millions of neurons).
