Pascal
04-16-2013, 03:57 AM
The 20DMF RT Model is much closer from issuing a short signal than the 20DMF EOD model.
The RT Model indeed uses the Cumulative Tick as a confirmation for the Short trades and this Cumulative Tick is already below its average. The EOD model uses the inversed ETFs, which do not confirm the possible short signal.
The link below compares the EOD to the RT model trades.
You can see that the RT model produced fewer trades (Mainly short trades) and hence kept the long trades longer.
18016
It seems today that the RT model wants to enter a short trade faster than the EOD model. Since we will have a gap-up today, we should expect large players to sell this gap. However, POMO money could easily push the Cumulative tick above its average. if we see a divergence between the 20DMF and the Cumulative tick, then we will know that POMO money is buying on a very large base, but that large players are selling the biggest stocks. However, if large players are buying the 20DMF today, then we should see a confirmation in the selling of T-bonds and the selling on the JP-Yen.
Pascal
The RT Model indeed uses the Cumulative Tick as a confirmation for the Short trades and this Cumulative Tick is already below its average. The EOD model uses the inversed ETFs, which do not confirm the possible short signal.
The link below compares the EOD to the RT model trades.
You can see that the RT model produced fewer trades (Mainly short trades) and hence kept the long trades longer.
18016
It seems today that the RT model wants to enter a short trade faster than the EOD model. Since we will have a gap-up today, we should expect large players to sell this gap. However, POMO money could easily push the Cumulative tick above its average. if we see a divergence between the 20DMF and the Cumulative tick, then we will know that POMO money is buying on a very large base, but that large players are selling the biggest stocks. However, if large players are buying the 20DMF today, then we should see a confirmation in the selling of T-bonds and the selling on the JP-Yen.
Pascal