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If The Stock Market Can Make You Rich, Why Are So Many Americans Poor?
I tried to guess what moving average(s) were used in the chart of the S&P 500, but it's not clear to me if one or two moving averages were used. An alternative approach is to make a monthly chart, using the Elder Impulse System to plot colored price bars. At the end of each month, reduce risk if the bar is red, and return to normal risk when the current month's bar is green. Hold if the bar is blue.
Thanks, @Tony, for the tip. Because of one of your earlier post (and tips) I changed my trend following graphs for the S&P 500 to plot the price line using the Elder Impluse System. That too, has turned out to be a good tip. Now I'll have to back track to each Friday close and see how the Elder Impluse charting compares to my week ending barometer readings using your risk adjustment system. Perhaps an enhancement will be forthcoming to the barometer? I am always looking for ways to improve the barometer. Thus far, it has provided meaningful information which I have incorporated into my market review process. I'm thinking you are charting based upon weekly chart settings producing month end readings?
Skeet, I typically use 3 time frames, as does Alexander Elder in his Triple Screen Trading System. You can Google that and find a PDF ("IX Trading Systems"), which someone lifted from his book, "Trading for a Living."
This previous article from the same guy, from back in January, makes sense. But I don't see what's NEW in the article that Ted originally linked. In the January article, a look at backward-looking realities is the focus. The author linked this Jan., 2017 item in the new one: https://realinvestmentadvice.com/the-illusion-of-declining-debt-to-income-ratios/
Comments
I tried to guess what moving average(s) were used in the chart of the S&P 500, but it's not clear to me if one or two moving averages were used. An alternative approach is to make a monthly chart, using the Elder Impulse System to plot colored price bars. At the end of each month, reduce risk if the bar is red, and return to normal risk when the current month's bar is green. Hold if the bar is blue.
https://realinvestmentadvice.com/the-illusion-of-declining-debt-to-income-ratios/