Alpha Hunters uses this model to know what the current trends are doing.
Markets will typically come back to the Moving Average as it's trending and even take them out which is a set up for our model called FAIL (Fail is in this list below). Meaning, if the market for example is trending up and the prices drop below the MA, it does not always mean the market is changing direction and it could advance up more after dropping below the MA.
All Alpha Hunters Trading Cycle (TC) Lows do happen below the MA. These low to low bar count average 15 to 28 bars from low to low. Keep this in mind as you are trading. Meaning, if the market is for example 25 bars from the last TC low and moving down towards the MA, it may more than likely take out the MA level to set up the TC Low pattern.
We recommend to track many time frames during these moves to see where each time frame is in the pattern. We have an automatic indicator called CycleWave and app called Market Pulse that tracks these patterns for you.
Past performance is not necessarily indicative of future results.
Next -> Momentum Models
Futures, Options on Futures and Forex trading involves a substantial degree of risk of loss and is not suitable for all individuals. An investor could lose the entire investment or, in some cases, more than the initial investment. Past performance is not necessarily indicative of future results.