The Indicators

Sample chart from May 7, 2018

This post explains the main website feature: the indicators that form r.Virgeel vision of the market.

The indicators are:

Bars ahead – neurally calculated – H/L/C is forecasted for the next 24 bars
Target– neurally calculated – where the current move is heading
Stop – neurally calculated- a value that confirm the trend and generates alerts of reversal
Position – neurally calculated – a simple, but detailed, as a neural swing system, Position is calculated in three fashion: the positive attitude, the negative attiture and an overall attitude. In moment of uncertainty this help to have confirmation of the reading.
Color Bars – neurally calculated – an evaluation of market’s potential energy through color code. It has integrated the old Stamina indicator.
Signal – neurally calculated – top/bottom pattern recognition. It’s the simplest original version of the Position indicator: it fires probable tops and bottoms detection.

FastTrack РThe standard report integrates now the FastTrack levels, from daily, weekly and monthly  models for SPX. The daily D-FT is available for:

  • S&P 500
  • Dow Jones Industrial Average
  • Nasdaq Composite
  • DAX Frankfurt
  • SHC Shanghai
  • GOLD
  • OIL WTI

 

All indicators are calculated indipendently from one another, giving the opportunity to let them reciprocally confirm.

The text on the left of the chart summarize the relevant numerical data, more numerical data in the body of the mail/post.

 

BARS AHEAD

Coloured bars. It’s a glimpse into the future: they represent the less improbable path the market is supposed to follow, for the next 24 bars. In the background, the latest monthly and weekly forecaste bars give a more complete and synchronical view of the coming events.

 

TARGET

Blue dots, blue lines. It’s a glimpse into the future: the Target is an evaluation of the price level that the S&P is bound. More the price nears the Target, higher the probabilities of an imminent turn.

STOP

Red dot, red lines. It’s a reading of the present. The Stop is the value that, if broken at close, suggests that the position has come to an end. It works either for long or short positions. The Stop is free to fluctuate and, by experience, the descending Stop is a sign of strength of the long position (and reverse), usually occurring during choppy phases.

Also, the weekly Stop is present on the chart (darker red band).

POSITION

It’s a reading of the present. The Position indicator is the most evolute and mimicks a complete trading system, with entry signals, position confirmation and exit signals. It is calculated separately for the long and for the short positions.

The Position indicator provides the following signals:

  • Open Position – generates signal triangle
  • Add to Position – generates signal triangle
  • Stay in Position
  • Reaching Top/Bottom – generates signal triangle
  • Close Position – generates signal triangle

that follow the ciclical activity of investing and trading.

 

SIGNAL

It’s a reading of the present. The Signal indicator is the parent of the Position indicator and it was, at a certain point, removed from the charts and dismissed. It has the aim to detect the market turning points. Lately, I decided to revive it and use it the signal generation: you may see, usually near the extremes of the chart, there are some small colored triangles. These triangles are generated from the Position indicator and from the Signal indicator and they usually coincide. The triangles should mark the extremes, but more often they generate a cloud of signals around the reversals.

 

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