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This post is about INO's tools for real-time alerts and stock market trends. I have access to the tool and use it for my own portfolio of stocks and ETFs. It gives you signals on any stock (or ETF, mutual, fund, forex). You will see some examples below, with very amazing results.
INO's alerts are based on a "trade triangle technology". The tool runs in a browser, there is no need to install anything. I ran a few analysis for gold, the U.S. Dollar, and the XLF financial ETF. The results were quite remarkable and are discussed below, as well as explanations.
You may access these tools here (a free trial offered through this link).
GLD:
Monthly Trade Triangles:
(please click to enlarge images)
The monthly trade triangles indicate trend, they are triggered in real-time for any stock. You may keep any stock in your own portfolio. In the above chart, the tool clearly identified the uptrend in gold (see the lonlety green triangle). The important thing is that there are no red triangles, i.e., there was no change in trend identified.
Now we add weekly trade triangles (we just click on the W triangle on top):
The weekly triangles add specific buy and sell signals. Again, if you followed these signals you will see they worked pretty well. You can also do daily, if that is your preferred timeframe.
Interestingly, the tool also provides with an audio commentary (just click the bubble icon on top of the chart). For example for GLD, you may hear the audio commentary here (please wait for the mp3 to load)
US Dollar:
The above shows the monthly triangles, which again showed the trend. What is remarkable on the above is that there are no other triangles. The trend remains intact, a clear indication of what really happened. Tools audio commentary.
XLF:
Monthly:
Again, a single green triangle is shown, correctly identifying the uptrend.
Monthly + weekly:
The weekly adds specific trade signals. Note that the last signal was a red one, indicating a sell (today financials are down indeed). Audio.
Selection of timeframes, Monthly, Weekly, Daily triangles, plus audio commentary:
(please click to enlarge)
The above the tool applied on Yamana Gold, with monthly, weekly, plus daily triangles activated. The red circles show you the bubble for the audio comentary, the period selection. For charting, you can select many time frames as well as types of charts (line, candle stick, high-low), etc.).
One last chart: Aetna (AET). With all the talk today on Health care Reform, see the downtrend alerts on AET in the last month:
You can access this tool and a free trial through the use of this link: Click Here
Please note that I am not endorsing the tools (I do not endorse any tools), I am just showing what this tool can do as an impressed user. The results were indeed remarkable.
I can run the tool for any symbol that you wish. If you are interested, just let me know.
Explanations From Their Web Site:
What are the Trade Triangles?
The Trade Triangle signals are produced by a triggering of our proprietary algorithm. The RED and GREEN triangles signify changes in trend on a monthly, weekly and daily level. The triangles are produced for all 230,000 symbols we track. Once the triangles are produced, they are never removed and are able to be backtested according to your own unique trading style.
MarketClub suggests a filtering approach when following the Trade Triangle signals. The filtering approach differs between security types and trading style.The Trade Triangle algorithm is comprised of weighted factors that include, but are not limited to price change, percentage change, moving averages, and new highs/lows.
GREEN triangles suggest positive trends.
RED triangles suggest negative trends.
The Trade Triangle algorithm is not intended to catch tops and bottoms, but instead identifies the majority of a swing trend. By allowing the trend to mature before a triangle is issued, we can trust that the trend is more steady and stable.
Note: The triangles will always be produced regardless of trend strength. The triangles should be used when you have a significant trend strength. You can use the Trend Analysis Score or other technical analysis studies to ensure the trend strength is appropriate for trading. For example, if a market is in a sideways motion, the triangles will still be produced even though you may want to be on the sidelines for that particular market.
How do I interpret the Trade Triangles? When would I enter/exit?
Equities: Monthly Triangles determine trend and possible entry points. Weekly Triangles determine timing: exits, entries and re-entries.
The last triangle issued on the monthly chart should always be used to identify the overall trend. You can also use the monthly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the weekly triangles for possible exit and re-entry points, or entry points if your monthly is in a steady trend.
Key Rule: always trade with the trend. Make sure your weekly and monthly triangles correspond in direction.
*If you are a shorter term trader, it is possible to use the weekly triangles to determine overall trend and possible entry points and the daily chart to determine individual timing points. Please be aware of the short term whipsaws, and lack of overall trend strength.
Forex: Weekly Triangles determine trend and possible entry points.Daily Triangles determine timing: exits, entries and re-entries.
The last triangle issued on the weekly chart should always be used to identify the overall trend. You can also use the weekly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the daily triangles for possible exit and re-entry points, or entry points if your weekly is in a steady trend.
Key Rule: always trade with the trend. Make sure your weekly and daily triangles correspond in direction.
When are the Trade Triangles issued?
The triangles are placed on the chart intra-day as soon as our algorithm is triggered on a monthly, weekly or daily level. The price and the date are placed above/below the signal. The scan will pick up the algorithm’s trigger and place the triangle on the respective chart.
Are the triangles considered buy and sell points?
Yes, if used in accordance with our filtering technique. Perhaps a better name for these Trade Triangles is “Trend Identifier.” Of course no system’s signals can be 100% correct, therefore MarketClub suggests to use proper money management, diversification and discipline.
What are the numbers in the box that comes up when I put on the Trade Triangles?
The box represents four important pieces of information that you can use to interpret the market. The three triangles on the left marked with an “M” for monthly, “W” for weekly, and “D” for daily, show if the last triangle issued for these time periods where pointed up (green) or pointed down (red). The price that is adjacent is the price at which the Trade Triangle was triggered.
What do the Chart Analysis Scores mean (-100, +85, etc.)?
+100 : Strong uptrend is in place and this market will likely remain in a long-term positive direction.
+90 : Positive in long-term. Look for this market to remain firm. Strong Uptrend with money management stops. A triangle indicates the presence of a very strong trend that is being driven by strong forces and insiders
+85 : An uptrend is in place. Intraday, intermediate and long-term trends are pointing in a positive direction, while the short-term trend is in a downward direction.
+80 : An uptrend is in place. Although the intraday, daily, weekly and monthly trends are all pointing in a positive direction, the current market action has fallen below the 20 day moving average.
+75 : The market may be in some near-term weakness. This market is still a long-term upward trend with intermediate and longer-term trends pointing to a bull market, but short-term and intraday term and point to a bearish movement. Keep tight money management stops.
+70 : This market remains in the confines of a longer-term uptrend.
+65 : Although the long-term positive trends are strengthening, the intermediate-term could signal the start of a major downtrend. You may want to keep your money management stops tighter than you normally would. You may also want to incorporate an alternative technical analysis study on your short-term chart to confirm the “Trade Triangle” signals.
+60 : This upward trend may have lost momentum and may be reaching a crossroads. You may see choppy market conditions in the near-term. Trend for the intraday, short-term, intermediate and long-term are not aligning in a stable direction. This would be a time to move onto the sidelines until a steady trend returns.
+55 : The trend of this market may be moving into a trading range. Trend for the intraday, short-term, intermediate-term and long-term are not aligning in a stable direction. This may be the time to move onto the sidelines until a steady trend returns.
+50/-50 : The trend is at a crossroads, and the momentum is faint if even there at all. Look for near-term choppy trading conditions and consider taking a sidelines position until a steady trend returns.
-55 : The trend of this market may be moving into a trading range. Trend for the intraday, short-term intermediate-term an long-term are not aligning in a stable direction. This would be the time to move onto the sidelines until a steady trend returns.
-60 : The downward trend has lost momentum and is reaching a crossroads. You may see choppy market conditions in the near-term. Trend for the intraday, short-term, intermediate-term and long term are not aligning in a stable direction. This would be a time to move onto the sidelines until a steady trend returns.
-65 : Although the long-term negative trend is strengthening, the intermediate-term could signal the start of a major uptrend. You may want to keep your money management stops tighter than you normally would.
-70 : This market may be experiencing some near-term strength. However, this market remains in the confines of a longer-term downtrend.
-75 : This market may be looking at some near-term rallying power. This market is still in a long-term downward trend with intermediate and longer-term trends pointing lower, but short-term and intraday-term pointing to a bull market. Keep tight money management stops.
-80 : A downtrend may be in place. Although the intraday, daily, weekly and monthly trends are all pointing in a negative direction, the market action has moved over the 20 day moving average.
-85 : A downtrend is in place. Intraday, intermediate and long-term trends are pointing in a negative direction, while the short-term trend is in an upward direction.
-90 : This score suggests that a weak downtrend is in place. This market is likely to continue in a downward direction unless new weekly highs are made. Use proper money management stops as this market may change rapidly.
-100 : A strong downtrend is in place and this market will likely remain in a long-term negative direction.
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