The LT Signal is based on our observations of Market Timer indicators and uses
the BoP at the core of its calculation. The LT Signal ranges from +3 to -3 (-5 to +5 for digital assets) with the zero line being the point at which we move from “bull market” to “bear market”. Bull markets are on the +(plus) side and bear markets on the – (minus) side.
Just like MTVol, the trend is just as important as the level.
• When the LT Signal trends on the +(plus) side of zero line we are in a bull market
• When the LT Signal trends on the -(minus) side of the zero line we are in a bear market
Similar to MTVol, the trend of the LT Signal is just as important as the level. If it’s moving higher, the market will generally move higher, if it’s moving lower, the market will generally move lower
This new long-term algorithm (LT Signal) looks at longer-term trends of the market – typically 6 months to one year.
Benchmarking the Long-Term (LT) Signal:
The following grid may be used to benchmark and evaluate the market using the LT Signal levels and values: