This is our V9 market trend analysis system I have been developing since 2001. The market trend is determined using a combination of price, stage analysis, cycles, momentum, volatility, volume, and more. This chart will be updated throughout the week for you to follow the market and know you are trading with the major index trend.
HOW TO USE OUR MARKET TREND INDICATOR
Trend Signals, the trades are color-coded to make identifying the trends easy. Green is an uptrend (bull market), Orange is a trend change stage, and Red indicates a downtrend (bear market).
Trend Trade Signals Based On Color Change:
Red to Orange: Buy Long
Orange to Green: No signal, but the market is in an Uptrend
Green to Orange: Sell Short, or Buy Inverse ETF
Orange to Red: No signal, but the market is in a Downtrend
How To Use Cycle Tops and Bottoms In an Uptrend: Cycles can be used to re-enter a position or deploy new money to work within a trend. When the chart is green (Uptrend) you can Buy Long. Depending on your trading style you can look to Buy Long at cycle lows, and Exit or take Partial Profits at cycle tops.
How To Use Cycle Tops and Bottoms In a Downtrend: When the chart is red (Downtrend) you want to Sell Short (buy inverse ETF) when the cycle is topping. Depending on your trading style you can look to Sell Short (Buy Inverse ETF) at cycle tops, and Exit or take Partial Profits at cycle lows.
BULL AND BEAR INDEX ETF’S (EXCHANGE TRADED FUNDS)
During a bull market in equities, traders should focus on being long (owning) ETF’s and stocks when the trend changes from Red to Orange, or Red to Green. Close long positions when the trend changed from Green to Orange. Once the trend has turned Orange or Red we recommend holding cash or moving into risk-off assets (safe-havens) like the Utilities Sector, Bonds, Or Precious Metals.
During a bear market in equities, traders should focus on being long (owning) inverse ETF’s when the trend changes from Green to Orange, or Green to Red. Inverse ETF’s rise in value as the stock market falls allowing you to profit from falling prices. Once the trend color has changed from Red to Orange, or Green we recommend holding cash.