Free Market Timing Charts
Following is a link to a free market timing charts. These charts are an oscillator for the S&P 500, NASDAQ, New York Stock Exchange composite and the Vanguard World fund. The top of the charts are always 100% and the bottom of the charts are always 0%. The lines in the middle of the charts are based on the median, not mean. The current day price is measured against the last xx days of closing prices. If current day price is less than the last xx days of closing price than it will be charted as 0%. If current day price is greater than the last xx days of closing price than it will be charted as 100%. Usually, the current day closing will be somewhere in between the last xx days of closing prices. When this happens the correct percentile is found and charted. The charts have a mouse roll over feature to display the exact percentile, and closing price. Note: xx days is determined by the moving average. The default moving average is 63 days closing prices, which is approximately one quarter of data. The moving average can be changed from as small as 10 days (approximately two weeks of trading) to as much as 252 days (approximately one year of trading).
How Do I Invest Based on These Charts?
To be a successful investor you need to buy low and sell high. The charts shows when prices are low in comparison to recent hostoric data. Theoretically, an investor should buy when the prices are below the blue line and sell when the prices are above the red line. I use Investment Timing Software for investing. I created this as a tool to double check when I should be buying and selling. I have not yet used these charts to determine when I should be trading. The next step will be to do back studies to determine the value of the information provided and to determine the best best chart settings.
Go to the Market Timing Oscillator Charts