Wording is a bit confusing. Ok, using more, MORE simpler terms. Red line goes up, SPX goes down immediately. Blue line goes down, SPX goes up one month later.
ok - since this is a trading forum, I am not going into the environmental discussion... but I want to say this.. as a training to 'be the ocean'.... instead of feeling sorry for the whale, or feel urged to use glass.. think - 'why do they push this narrative'?
if you had followed this longer like I have, it will be easier to ignore the daily/weekly noise.... this indicator is so smooth... it's brilliant.. in late 2016 to late 2017 it was consistently in the 1:9 range long short... then late 2017 to late 2018 it gradually drifted to 1:1.... my time frame is years... no need to look at the noise... 1:9 to 1:1 over many months should give you plenty time to sense what is going on. and by the way, this is why short term trading is a waste of time... you don't see any real stories unfold.. just price jumping up and down doesn't really tell you much, the noise/signal ratio is way too high to worth the effort.
the market is not fractal.... it breathes at a certain rhythm and you have to breath at that rhythm also.... that is the path of least resistance to profit.
dozu888, If this is related to the S&P 500 or total stock market, I am completely and confident LONG and STRONG for the next 25 years.
the sp500.. they moved the DIA down 19.44% lol, of course the NAZ and the small caps past 20% 2 much evidence that they are getting ready for the next push.