I began growing my first technical indicator in 1997. I keep in mind that 12 months as a result of my daughter was working with me on the time.
Nicely, “working” could also be too robust a phrase…
She was solely 4. However she’d sit on my lap and stare on the laptop display screen with me. She all the time requested quite a lot of questions.
Explaining markets to a four-year previous made me a greater author, I feel. In spite of everything, she didn’t have any background in finance or economics. My solutions needed to be easy, or she was off to sing these annoying Barney the dinosaur songs.
Working with a four-year previous additionally compelled me to create clear indicators — as a result of by the point she was in kindergarten, she needed to click on via charts on her personal. She appreciated telling me what I wanted to purchase and promote the subsequent day.
The primary purchase sign I confirmed her was a easy black and white chart. She stated I ought to add colour to make the indicators simpler to see. We landed on inexperienced for purchase, and purple for promote.
Laptop displays weren’t as sharp again then. She wanted to see an unambiguous colour change to determine the sign. After trial and error, I discovered bar charts had been best for her to work with. She didn’t get distracted by the shapes or curves.
With the bars, she was in a position to determine indicators for the half-dozen markets we traded.
She’s all grown up now. And I’m a greater programmer than I used to be 25 years in the past.
However I nonetheless use the concepts that helped my four-year previous perceive buying and selling, as you’ll quickly see…
My newest indicator, the Greed Gauge, is on the backside of the chart under.
It is a chart of the Invesco QQQ Belief (QQQ), an ETF that tracks the Nasdaq 100 Index. It consists of the favored tech shares that had been crushed within the current sell-off. At its low, QQQ was about 32% under its excessive.
In fact, the purchase and promote indicators are proven by purple and inexperienced bars. I highlighted the chart to emphasise these indicators.
As you’ll be able to see, the Greed Gauge prevented the worst of the drawdown — whereas additionally offering a key purchase sign simply earlier than the rally in March.
However what I actually need to draw your consideration to is that small inexperienced bar on the decrease righthand nook.
If this was 1997, my daughter can be telling me to prepare to purchase…
As a result of simply final week, the Greed Gauge turned bullish on QQQ and different index ETFs.
Now, this doesn’t imply the underside is in. Greed Gauge indicators are designed to catch short-term market strikes.
All this tells me is that QQQ is in for a bear market rally. If my Greed Gauge stays bullish, although, it simply is perhaps a bull market transfer…
Solely time will inform. I’ll be watching this chart intently to see when to promote — or if the bear market is absolutely via.
To get the complete energy of the Greed Gauge at your fingertips, make sure you tune in to my reside occasion tonight at 8 p.m. ET.
It’s probably the most highly effective timing software I’ve developed in 25 years. And I owe the readability of the indicators to the preschooler who instructed me so as to add colours to my charts.
Regards,Michael Carr, CMT, CFTeEditor, True Choices Masters
Chart of the Day:Did Greed Gauge Name the Bitcoin Backside?
By Mike Merson, Managing Editor, True Choices Masters
At present on the bitcoin chart, a shred of hope.
Whereas bitcoin costs had been plumbing the depths under $30k this previous week, all hope appeared misplaced for a brand new bull market coming alongside anytime quickly.
But, Mike’s Greed Gauge was quietly flashing a serious purchase sign…
And whilst the worth of bitcoin tread water, the Greed Gauge continued to construct, and construct, and construct…
Till it lastly culminated within the value motion we noticed yesterday, with bitcoin breaking its short-term downtrend and doubtlessly shifting momentum again to bullish.
On the very least, the Greed Gauge predicted one more bear market rally for us to revenue on. At most, it might have referred to as the bitcoin backside.
Both method, mere phrases usually are not sufficient to explain simply how thrilling Mike’s Greed Gauge is.
So I gained’t simply use phrases. I’ll use numbers…
- Mike’s Greed Gauge has profited in 7 of the final 9 market downturns…
- Tripling the S&P 500 over the past twenty years…
- With triple-digit positive aspects of 139%… 143%… 228%… even 775% … all in 31 days or much less.
It’s a real evolution in momentum buying and selling methods. And tonight at 8 p.m., you’ll have the uncommon likelihood for a crash course on the Greed Gauge from Mike himself, revealing why that is the #1 software to have in your package for what lies forward.
In the event you haven’t already signed up, click on right here and accomplish that proper now. We’re simply hours away from the massive occasion, and that is NOT one to overlook.
Regards,Mike Merson Managing Editor, True Choices Masters