A Sector Robot observation.

[manucastle]

Pascal,

I spend quite a bit of time looking through the ETF money flows every day and perhaps you can confirm something that I have noticed recently since we have the new Sector robots.

I have studied charts for the last 22 years or so and I never was very successful as a Technical trader. The main reason was when everything looked positive on a chart and all the required positive signals lined up together, as the text books stated was necessary for a successful trade, it was in fact the opposite case and it was usually the time, not to be entering a trade, but to be selling !

I have noticed the Sector Robots are in fact representing this alternative case and issuing a buy signal when the charts look negative and issuing a short signal when the charts look positive.

Am I generally, if not specifically, correct in this observation ?

Trev

[Pascal]

Pascal,

I spend quite a bit of time looking through the ETF money flows every day and perhaps you can confirm something that I have noticed recently since we have the new Sector robots.

I have studied charts for the last 22 years or so and I never was very successful as a Technical trader. The main reason was when everything looked positive on a chart and all the required positive signals lined up together, as the text books stated was necessary for a successful trade, it was in fact the opposite case and it was usually the time, not to be entering a trade, but to be selling !

I have noticed the Sector Robots are in fact representing this alternative case and issuing a buy signal when the charts look negative and issuing a short signal when the charts look positive.

Am I generally, if not specifically, correct in this observation ?

Trev

Yes and No: there are Buy in oversold situations (when everything looks so bad that everybody has been heavily selling), Short in overbought situation (when everything looks so good that everybody has been continuously buying), but there are also standard Buy and Short signals that are issued when simply the MF moves above or below the 0 level.

So I would say that it is a combination.


Pascal