Here's something I discussed the other day and a couple of
charts where you can visualize.
When the market is in an uptrend and the MA's are bullishly
stacked, as you know I've discussed how you get additional buy
opportunities in the uptrend whenever the BPT MA turns red while it
is above the ribbons and pinching.
What I've noticed is that your best additional buy signals occur
whenever the BPT MA is red for only 2 - 4 bars. Whenever you start
getting more than this, especially over 5, the market tends to have
a bigger pullback than a simple reversion to mean. On the
daily KISS charts I've placed the number in yellow that the BPT MA
Deluxe was red while it was above the ribbons
currently the BPT MA Deluxe has been red for 3 bars, which is
fine. But if we see too many days say over 5 then could see a
larger pullback. I don't have any stats on that, just a visual
observation
SPX KISS Daily observation
Posted by matt on 21st of Nov 2020 at 01:44 pm
Here's something I discussed the other day and a couple of charts where you can visualize.
When the market is in an uptrend and the MA's are bullishly stacked, as you know I've discussed how you get additional buy opportunities in the uptrend whenever the BPT MA turns red while it is above the ribbons and pinching.
What I've noticed is that your best additional buy signals occur whenever the BPT MA is red for only 2 - 4 bars. Whenever you start getting more than this, especially over 5, the market tends to have a bigger pullback than a simple reversion to mean. On the daily KISS charts I've placed the number in yellow that the BPT MA Deluxe was red while it was above the ribbons
currently the BPT MA Deluxe has been red for 3 bars, which is fine. But if we see too many days say over 5 then could see a larger pullback. I don't have any stats on that, just a visual observation
Nice observation Matt- just to
Posted by arun on 22nd of Nov 2020 at 10:15 am
Nice observation Matt- just to understand better- this applies to daily chart and each bar represents one day move ?
I would say it's probably
Posted by matt on 22nd of Nov 2020 at 03:56 pm
I would say it's probably fractal, would generally behave like that in uptrends on all time frames
Great observations Matt. Thanks for
Posted by vdonato on 21st of Nov 2020 at 05:26 pm
Great observations Matt. Thanks for the explanations and work you've done with this system
Make sure you keep track
Posted by 2schnauzers on 21st of Nov 2020 at 02:05 pm
Make sure you keep track of these excellent observations!