The most beautiful chart I've ever produced...

The most beautiful chart I've ever produced...

...i discovered, for myself, how to determine which direction the markets are moving

 

Looks great. What kind of chart is this.

 

rise over run

 

Otherwise known as Slope.

 

Interesting.

 

I can make your chart even more beautiful. Yep, more beautiful than "the most beautiful chart."

Here is how: Turn the chart upside down!

Amazing, isn't it?

 

Neo -

Care to post any details on what went into generating this chart?

I get that it's the slope of something, but it'd be educational to have more details than that. Slope of an MA or some other price derivative? On what instrument/index? What time frame? Etc.

Thanks.

Sandy

 

It's the average slope of the 50 day MA of about 1000 stocks over the past 10 years.

I calculated the slope using the percentage rise over 5,10,20,30,40 days ... it really seemed to smooth out at 40 days.


market.mktDays[didx].slope3 = 100*((market.mktDays[didx].SMA[0] - market.mktDays[didx-s1].SMA[0])/market.mktDays[didx-s1].SMA[0])/s1;
market.mktDays[didx].slope2 = 100*((market.mktDays[didx].SMA[1] - market.mktDays[didx-s2].SMA[1])/market.mktDays[didx-s2].SMA[1])/s2;
market.mktDays[didx].slope1 = 100*((market.mktDays[didx].SMA[2] - market.mktDays[didx-s3].SMA[2])/market.mktDays[didx-s3].SMA[2])/s3;


I wouldn't suggest that this is particularly novel ... but it looked pretty when it was first generated.

 

It does indeed appear to be a very attractive decision tool. A couple follow-up questions:

1. What charting/data service did you use to generate the calculations and chart?

2. How did you chose the 1000 stocks? The largest cap 1000?

3. Have you checked to see what your return would be if you went long on each turn up and went short on each turn down, say using the S&P 500?

 

i like it, now band it with 2.5% of the 40 day average.