Concepts and Signal Generated by Market Timer

The overriding major concepts in technical analysis also apply to the analysis of the signals generated by Market Timer:

1. strength/weakness
2. support/resistance
3. overbought/oversold
4. trends (up/down, short-, intermediate-, long-) and
5. anomalies/divergences

Trend time frames are defined as follows:

Short-term – trends lasting minutes to hours to a day.
Intermediate-term – trends that generally last 2-7 days or more.
Long-term – trends that last months or a year or more.

Signals Generated by Market Timer

Central to Market Timer’s power in predicting market participants behavior (referred to affectionately as the ‘herd’) and price movements are the MT signals.

There are 2 primary signals generated by Market Timer’s algorithm:

• MT Volatility Index (MTVol – which includes Pipeline and Flow indicators)
• Balance of Power (BoP – visualization of bull/bear herding + BoP Curve indicator)

Three secondary indicators:

• MT Supply/Demand Index (MTSD)
• Swing Signal Algorithm (Up/Down swing signals based on our algorithm)
• Strength/Trend Index (ST – strength/weakness indicator of a price move)

And a long term indicator:

• Long Term Signal (LT Signal is an indicator for 6 month – 1 year price trends)

There are two supporting indicators that are also important confirmations used occasionally in our analysis:

• Average Volume per Share (AVS)
• 21 vs 27 Day SUM (DOW) or 11 vs 21 Day SUM (NASDAQ)

Lastly, there’s one MT indicator we use to identify pricing anomalies on the DOW:

• Price Anomaly Column

The terms we use and some of the concepts may be unfamiliar to you, but they are extremely powerful and worth your time reviewing. If you have any questions after studying this Guide, please contact support at the bottom of this page: