The proposed system is based on a mathematical analysis of a numerical time series .The algorithm calculates 2 exponential moving averages, adapted to the individual asset under consideration, relating to closing quotes. EMAs formulas are therefore modified and don’t match with traditional ones .
The trend of the averages highlights the medium-term trend (3 – 9 months), and is displayed on the left chart , where you can see moving averages (the green one is the faster , the red one is the slower ) . They are , as explained above , exponential moving averages modified and adapted by algorithm to the relevant asset . The chart on the right, on the other hand, shows the difference between the two averages mentioned, indicating the most significant trend reversals, potential opportunities for market intervention.
In particular, when the indicator (red line) placed at the bottom of right chart reaches the minimum levels you are in the probable presence of a point of reversal of the trend, as well as the achievement of maximum levels preludes to a bearish reversal . When red line , coming from a bottom , crosses zero level from below , strategy goes long ; when , coming from a top , crosses zero level from above, strategy goes short. The short-term trend refers to a time interval between one week and three months . To see the strategy relevant results , please see site’s Homepage .
Below are some examples of practical application , acting on the working day after the signal (cross above zero following a deep, below zero following a top) as the chart on the right . You can see past levels of interventions with green (in) and red (out) arrows on right charts . This is a long-short strategy .
Legenda
1/ Main indexes trends and levels
2/ Main indexes trends and levels
US Government , Corporate and High Yield Bonds
Wti Oil and Gold
All Commodities
Agricultural Products
Industrial Metals
