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inversely with one another on any given day or hour. What we're talking about here is part science, part art. To be successful takes a lot of hard work. There is no easy fix. Traders who think so, who echo the grandiose claims too often made in this industry, are just kidding themselvesand will probably end up contributing to the industry loss statistics. |
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Neal: Can you show me some practical examples of how traders would use the output from your VantagePoint software program? |
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Louis: Sure. VantagePoint provides our clients with its predicted information in two ways. One is a graphical representation of the output in the form of a daily chart, and the other is a numerical representation of the output in a daily report. VantagePoint clients have the flexibility to look at this information either way, since some traders are more visually oriented, while others are more comfortable just looking at the numbers. |
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On the graph (see Figure 13-1), you can see the PTM (projected 10-day moving average) touching the TRNDM (actual 10-day moving average) at the bottom left. Each time those two lines converge and begin to cross, it is an indication that the market is about to change trend direction. When the two lines are moving together in an upward direction, VantagePoint is projecting the market to continue an uptrend. On the flipside, as the two lines begin to converge and move to the downside, VantagePoint is expecting the market to trend down. This occurred on this graph in mid-October. The PTM and TRNDM crossed to the downside, indicating to VantagePoint clients a change in market direction. |
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The numerical daily report (see Figure 13-2) has three sections. The first section is the index, which will be a number between 0.00 and 1.00. This indicates when the market is expected to make either a top or a bottom. |
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The main point traders look for on the index is an increase or a decrease in value. For example, when the index switched over from a 0.00 to a 1.00, this was an indication that VantagePoint was forecasting a change in market direction to the upside. Since the index |
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